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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 objective of the DG-GRID project is to improve the interface between distributed generation and the electricity supply system to promote the deployment of RES/CHP through the development of regulatory guidelines. 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.
Selected publications:
Regulatory Review and International Comparison of EU-15 Member States, Klaus Skytte and Stephanie Ropenus. GD-GRID, Report D1, October 2005.
Introduction and Key Messages from the DG-GRID project, Martin Scheepers, ECN Policy Studies
(project coordinator). DG-GRID & ELEP Final Seminar, Brussels, June 5, 2007.
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