1. Eurelectric calls for national regulators to allow DSOs to make anticipatory investments for net zero power infrastructure.
2. Increased calls for anticipatory investments in the grid are necessary to address future needs.
3. Eurelectric suggests revising regulatory frameworks, enforcing TSO and DSO cooperation, and allocating EU funds for network investments to achieve net zero targets.
In a new report, Eurelectric is calling for national regulatory authorities to allow Europe’s Distribution System Operators (DSOs) to make anticipatory investments in power infrastructure to prepare for achieving net zero emissions. These investments are seen as necessary to address future needs and bridge the gap between renewable energy development and grid buildout. The current regulatory framework in Europe only allows DSOs to invest in the power grid after a connection request is made, which could hinder progress towards net zero targets.
Eurelectric emphasizes the importance of transitioning to a forward-looking mindset and allowing DSOs to proactively invest in infrastructure to support a decarbonized economy. Anticipatory investments are defined as those that address expected future developments, even if there is low immediate utilization. The report proposes that national regulators remove barriers and incentivize DSOs to invest ahead of time, ensuring a stable investment environment and fair remuneration.
To facilitate these anticipatory investments, Eurelectric suggests revising regulatory frameworks to include and define them, publishing relevant recommendations and guidelines for national regulatory authorities, and encouraging TSO and DSO cooperation. EU funds should also be allocated to support distribution and transmission network investments to meet renewable energy and emissions targets. By taking these actions, Europe can better prepare its power infrastructure for a sustainable, decarbonized future.