Eurelectric, representing the electricity industry in Europe, is calling on national authorities to allow anticipatory investments by system operators to upgrade and expand grids, in line with the EU's efforts to future-proof its power infrastructure.
The EU has recognized the necessity of modernizing its power infrastructure to accommodate the increasing electrification of industry, transport, and heating, along with connecting new renewable energy capacity.
Current regulatory frameworks in Europe only permit distribution system operators (DSOs) to invest in grid expansion after receiving a connection request. However, with the need for faster decarbonization and long lead times for grid build-out, there is a pressing need to address future electricity needs at the required speed and scale.
Eurelectric's new report outlines strategies to enable anticipatory investments across Europe, emphasizing the importance of looking beyond immediate requirements of generation and demand to meet the EU's target of electrification reaching 50% of final energy consumption by 2040.
Kristian Ruby, Secretary General of Eurelectric, emphasized the urgency of transitioning to a forward-looking mindset, stating, “The cost of inaction for society will be much higher than temporarily investing at a higher level to ensure our grid can deliver all necessary services to society in a decarbonized economy.”
To facilitate anticipatory investments, national regulators must remove barriers and incentivize DSOs with fair remuneration and a stable investment environment. DSOs, as managers of electricity delivery, should be empowered to plan grid expansion and digitalization, requiring stronger cooperation with transmission operators and local authorities.
Eurelectric recommends that anticipatory investments be included within the existing tariff framework and incorporated into EU countries' network development plans to ensure coordination and clarity, aligning with decarbonization objectives.
