Investments in distribution networks: A decisive element of the planned Electricity Market Reform

Yesterday (14 March 2023), the European Commission officially presented its proposal to revise the Electricity Market Design (EMD) in Strasbourg. Together with GEODE, E.DSO considers this reform to be a unique opportunity to acknowledge the crucial role of distribution networks in EU legislation in an appropriate and sustainable way.

While we welcome the Commission’s amendments, acknowledging the importance of anticipatory grid investments, including flexibility resources and flexible connection agreements, we believe that a more prominent role should be assigned to Distribution System Operators (DSOs), if a quick upgrading and reinforcement of the grid infrastructure shall be achieved. This includes a clear mandate that entitles DSOs to adjust, upgrade and expand the grids – a fundamental prerequisite for the envisioned transformation of the energy system and to ensure security of supply.

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