ECN: DG-GRID
Markets, Infrastrucuture and Energy Security - Security of Supply
Enhancement of Sustainable Electricity Supply through Improvements of the Regulatory Framework of the Distribution Network for Distributed Generation
The project has been finalized. Results are available:
- A policy letter with key messages of the DG-GRID project
- The Final Report with a summary of the DG-GRID project results
- Deliverables from the Working Packages
Achieving sustainability targets
According to several directives of the European Union (RES Directive, CHP Directive and Electricity Directive) electricity supply from renewable energy sources (RES) and combined heat and power (CHP) should be considered in the operation and planning of the electricity infrastructure. Furthermore, costs and benefits to the distribution network induced by the various distributed generation (DG) technologies should be taken into account in the electricity network regulation. In practice, however, current electricity network regulation often does not consider regulatory mechanisms to ensure effective participation of RES and CHP in liberalised electricity markets. This could become a serious barrier for the deployment of RES and CHP and complicate the achievement of European and national sustainability targets.
Support mechanisms
National governments may use support schemes to ensure that DG and RES are employed and environmental benefits are achieved and thus mitigate the barriers to incorporating RES and CHP within economic regulation of electricity networks. Yet the design of electricity network regulation can undermine support mechanisms.
Improvements of the regulatory framework
What is more, when electricity supply of RES and CHP surpasses a particular level and can no longer be ignored in planning and operation of the electricity supply system, compensation through the support schemes will become ineffective and inefficient. Therefore, improvements of the regulatory framework of electricity supply systems are required along with the growth of the electricity supply from RES and CHP.
Objectives of the DG-GRID project
The main objectives of the DG-GRID project are to:
Review... | the current EU MS economic regulatory framework for electricity networks and markets and identify short-term options that remove barriers for RES and CHP deployment. |
Analyse... | the interaction between economic regulatory framework, increasing volume share of RES and CHP and innovative network concepts in the long-term. |
Assess... | the effects of a large penetration of CHP and RES by analysing changes in revenue and expenditure flows for different market actors in a liberalised electricity market: |
Develop... | guidelines for network planning, regulation and the enhancement of integration of DG in the short term, but including the opportunity for new innovative changes in networks in the long-term. |
This includes both improving coordination between RES/CHP and the network operator (DSO - Distribution System Operator) within the existing framework and implementing new network and regulatory structures in the medium-term.
For more information please contact Herman Snoep
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