New energy market design – EDSO response to EC consultation

New energy market design – EDSO response to EC consultation

The European Distribution System Operators for Smart Grids (EDSO) welcomes the European Commission’s (EC) consultation on a new energy market design, as it is a timely opportunity to present its proposals for revising the European regulatory framework for energy, or the ‘Third Energy Package.’

For the last few years, distribution system operators (DSOs) have been contributing to the energy transition by connecting wind turbines and photovoltaic (PV) systems to their networks, deploying smart meters, facilitating retail markets and cooperating with local authorities.

Unfortunately, these first steps have been taken with limited support from national regulatory authorities (NRAs) and public authorities. To make a smoother transition towards a decentralised energy system and reap the benefits of smarter grids and higher flexibility, an overhaul of the Third Package is needed. After years of focus on the wholesale market, the revised regulatory framework should move renewable energy sources (RES), retail markets, distribution networks and flexibility to centre stage.

This primarily should be done through the definitions of high-level principles and guidelines, specific enough to impact the energy system but also by giving Member States sufficient discretion to address national circumstances. In this context, EDSO formulates six key policy recommendations for the European Commission.

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