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Image header Agence Europe
Europe Daily Bulletin No. 13253
Contents Publication in full By article 16 / 45
SECTORAL POLICIES / Energy

Forum on electricity networks, European regulatory framework needs to be reviewed in order to accelerate investment needed to achieve carbon neutrality

On Tuesday 19 September, the European Network of Transmission System Operators for Electricity (ENTSO-E) published the conclusions of the first Electricity Grids Forum, which was held on 7 September in the presence of the European Commissioner for Energy, Kadri Simson (see EUROPE 13245/7).

The conclusions of this forum on the future of European electricity networks and the acceleration of the energy transition focused on four key themes: - mobilising the necessary financial capacity; - how policy and regulation can facilitate and accelerate investment in the network; - the challenges posed by production capacity and the skills required; - how to include local communities and the general public to increase support for the network infrastructure.

Securing investments

Participants discussed the need for greater public funding at European and national level to adapt the network to new technologies, suggesting better access to existing European mechanisms such as cohesion policy funds, InvestEU and the innovation fund. 

Specific funding for small distribution system operators (DSOs) has been proposed. The role of the EU taxonomy in investment in electricity networks was recognised and support for the issue of green bonds was welcomed. 

Finally, emphasis was placed on knowledge sharing within the industry, “given that reporting and implementation may be difficult for small TSOs and DSOs to achieve”. 

Regulation to encourage efficient deployment of network capacity

Several participants felt that “the regulatory framework needs to be reviewed in the light of the need to accelerate the network and the investments required to achieve carbon neutrality”.

This requires a clear investment framework, including early investment and an appropriate regulatory environment. 

According to the conclusions, Europe should maximise existing infrastructure, use smart solutions and optimise capacity while investing in new capacity for the integration of renewable energies. 

Political issues such as cross-border cost sharing and interconnections should also be taken into account.

Participants also stressed the need to improve authorisation procedures, long-term planning, sectoral integration and the extension of digital solutions.

Staff and supplies

Participants also discussed the need for resources to accelerate network deployment and digital transformation in Europe. 

They called for long-term commitments from grid operators and the industry, with an emphasis on holistic grid planning. 

They also stressed the importance of a level playing field with global markets, and emphasised the role of digitisation in the green transition.

To address the shortage of technical staff, participants encouraged skills initiatives and collaboration between industry, institutions and governments to collectively tackle production and skills challenges.

Stakeholder engagement

According to the conclusions, implementation and constructive dialogue with local communities are essential for network projects.

Building trust is a long-term process. A sound strategic environmental assessment can help to build confidence and ensure that projects are completed on time”.

Finally, the findings indicate that collaboration between political leaders, TSOs, DSOs, regulators and stakeholders is needed, with a focus on stakeholder engagement throughout planning, deployment and operation to maintain trust and respect the needs of communities.

These conclusions are intended to serve as a reference for future political action. 

To see the conclusions: https://aeur.eu/f/8nq (Original version in French by Pauline Denys)

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