From distribution networks to smart distribution systems : rethinking the regulation of European electricity DSOs

Abstract

An increasing deployment of distributed energy resources allows for new business models that have the potential to substantially change today’s electricity markets. These changes bring challenges for distribution system operators and their regulation alike. This THINK report sheds light on the missing blocks in current regulation, recognizing DSOs as regulated monopolies, but also as key players along the value chain. We provide insights on how regulation should be adapted so that DSOs are incentivized to facilitate the market entry of welfare-enhancing technologies efficiently and in a timely fashion, but also to exploit distributed energy resources to manage the distribution system efficiently.