DSO Entity acknowledges of the publication of the Grids Package which was presented on 10 December and included legislative and non-legislatives proposals with a focus on planning, permitting and connecting.
The Grids Package builds on the Grid Action Plan (2023) and further aims to improve the conditions for Europe’s grids, which are considered as key-enablers of the EU’s competitiveness, energy security and the delivery of its climate and energy objectives. The Grids Package focuses on changes in the planning process with the revision of the TEN-E regulation, introduces a comprehensive permitting regime and proposes non-binding Guidelines for efficient and timely grid connections.
While DSO Entity welcomes the publication of the package, and in particular the proposals for faster and simplified permitting, it underlines the importance of fully reflecting the decentral dimension and the pivotal role of DSOs. With all households and most industries connected to distribution grids, and over 70% of renewables integrated at this level, DSOs are delivering the energy transition locally. Ensuring the right regulatory framework for DSOs at the national level will therefore be essential to unlock the full potential of Europe’s clean-energy shift.
Integrated planning fosters efficient extension and smartening of grids
Given the greater importance of the decentralised level, where the electrification of transport and heating/cooling and the connection of renewables takes place, the inclusion of DSO projections into the general network planning is central. Ensuring that TSO development plans (both TNDPs and the TYNDP) integrate DSO data, forecasts and needs is essential to make sure local grid developments are properly supported by upstream infrastructure. Therefore, DSO Entity welcomes that the European Commission highlights that the planning of distribution grids must be well coordinated with transmission-level planning, i.e. DSO inputs sufficiently included into TSO-planning.
Simplified permitting supports accelerated decarbonisation
Permitting is one of the biggest bottlenecks for DSOs with procedures that can take up to 8-10 years in the medium- and high-voltage distribution network. The proposals setting a new EU regulatory permitting framework for electricity grids are therefore positive and overall, in line with DSO Entity’s requests for further simplification beyond the TEN-E framework. The objective of limiting the permitting procedures to two years (and three for the most complex projects) is crucial to support accelerated decarbonisation. The expansion of the overriding public interest to grid projects due to their key role in reaching climate neutrality, and shorter permitting procedures and exemptions from environmental assessments for some DSO infrastructure are welcomed. However, the revision of several key legislation, only recently adopted and not yet transposed, could lead to broader reopening of the texts beyond the initial scope and increased complexity, therefore further delaying implementation.
Clear national regulatory frameworks enable timely connection
DSO Entity appreciates the holistic approach taken by the European Commission in its non-binding Guidance on efficient and timely grid connections, which recognises the need for anticipatory investments, long-term planning and the external challenges faced by grids, including permitting and supply-chain constraints. The EC’s practical ideas for moving beyond the “first-come, first-served” principle are generally welcomed, but it will be essential to establish a clear and transparent national legal or regulatory framework that protects grid operators from legal challenges related to prioritisation decisions. In general, national implementation must remain practical and feasible, avoiding additional bureaucratic complexity for grid operators. Some of the proposals regarding the provision of transparent information of available grid hosting capacity go beyond existing EU legislation and may increase administrative burden with little benefits. For instance, linking distribution network development plans to grid-hosting-capacity maps and setting out future infrastructure needs is not something that can be implemented quickly and that will require time and significant effort. Moreover, the proposed role for DSO Entity and ENTSO-E in providing an EU-wide overview of national connection queues appears to offer limited added value.
National implementation of existing EU legislation is key
While it is positive that grids are receiving greater attention, the package alone will not resolve all underlying challenges. The implementation of forward-looking regulatory frameworks and anticipatory investments aligned with existing EU rules remains essential including adequate compensation and predictability about future earnings. To unlock the full potential of Europe’s grids, particularly distribution networks, which are central to the European energy transition, it will be crucial for the European Commission to ensure effective implementation of their Guidelines and related rules across Member States.