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Distribution Grids in Europe Facts and Figures 2020

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Distribution Grids in Europe Facts and Figures 2020 Distribution Grids in Europe Facts and Figures 2020 December 2020 Eurelectric represents the interests of the electricity industry in Europe. Our work covers all major issues affecting our sector. Our members represent the electricity industry in over 30 European countries. We cover the entire industry from electricity generation and markets to distribution networks and customer issues. We also have affiliates active on several other continents and business associates from a wide variety of sectors with a direct interest in the electricity industry. We stand for The vision of the European power sector is to enable and sustain: - A vibrant competitive European economy, reliably powered by clean, carbon-neutral energy - A smart, energy efficient and truly sustainable society for all citizens of Europe We are committed to lead a cost-effective energy transition by: investing in clean power generation and transition-enabling solutions, to reduce emissions and actively pursue efforts to become carbon-neutral well before mid- century, taking into account different starting points and commercial availability of key transition technologies; transforming the energy system to make it more responsive, resilient and efficient. This includes increased use of renewable energy, digitalisation, demand side responseand reinforcement of grids so they can function as platforms and enablers for customers, cities and communities; accelerating the energy transition in other economic sectors by offering competitive electricity as a transformation tool for transport, heating and industry; embedding sustainability in all parts of our value chain and take measures to support the transformation of existing assets towards a zero carbon society; innovating to discover the cutting-edge business models and develop the breakthrough technologies that are indispensable to allow our industry to lead this transition. D&MF Louise RULLAUD, Advisor - Distribution & Market Facilitation - Infrastructure & Flexibility Lead - [email protected] Christian GRUBER, Trainee, Distribution & Market Facilitation - [email protected] Dépôt légal: D/2020/12.105/67 Distribution Grids in Europe Facts and Figures 2020 In the midst of the energy transition, Distribution System Operators (DSOs) are facing various challenges to ensure the cost efficient, reliable and secure development and operation of their networks: • A constantly growing share of distributed renewable generation connected to the distribution grid • The rising numbers of active customers engaged in demand-response and electric mobility. DSOs have access to new tools to manage their grids more efficiently and to integrate increasing amounts of variable renewables in the system. Interactions between intelligent appliances, smart grids and home platforms–mediated by or on behalf of customers– will usher in a new era. Europe’s distribution system will need to adapt its role to keep pace with the transformation of the energy world and with changing customer needs. Undoubtedly, DSOs are central in the energy transition and they are moving towards a decentralised management of their grids. In other words, DSOs have to transform their business model from “pipes”- based to “platform”- based to meet the expectations of customers and to bring all market parties efficiently together. For more details – Eurelectric vision – From “Pipes to Platforms” 1 1 Overview of the DSO landscape in Europe 2 Electricity distribution is a natural monopoly which is handled by Distribution System Operators (DSOs). Core tasks of DSOs DSOs are: DSOs are: • Fully regulated companies - Allowed revenue is deternined by national authorities. 1. System operators – DSOs secure a reliable flow of electricity through their • Unbundled companies - Activities that are potentially subject to competition (such as network to their customers. They constantly develop and maintain their networks production and supply of energy) are separated from those where competition is not to ensure that the networks operate efficiently and with high level of system possible or allowed such as distribution of electricity. security, reliability and efficiency in its areas with due regards for the environment and energy efficiency. The EU Regulation introduced unbundling requirements in the third Energy Package adopted 2. Information providers - For the needs of distribution system users for efficient 1 in 2009 for vertically integrated undertakings. access to, including use of the system. With regards to the distribution activities. different levels of unbundling exist: 3. Neutral market facilitators – DSOs are also required to provide non-discriminatory access to their networks for other system users, like power generators or service 1. Account unbundling – Requirement to keep separate accounts for DSO activities. providers. They will increasingly move beyond their traditional role of “building 2. Functional unbundling – Obligation for the persons responsible for the management and connecting” towards “connecting and managing”. In many countries, DSOs of the DSOs do not participate in company structures of the vertically integrated also own and manage metering infrastructure, organise supplier switching or as an undertaking responsible, directly or indirectly, for the day to day operation of production, information hub by storing and providing metering data. transmision or supply activities. In the framework of the Clean Energy Package. the recast of the Electricity Directive 3. Legal unbundling – Obligation to create a separate company for network activities. Other (2019/944/EC) did not significantly change the legal framework for unbundling activities such as supply or production can be carried on within a single company. requirements but has provided additional specifications on the scope of activities that may be handled by DSOs. Legal unbundling is required for electricity DSOs. DSOs with less thant 100 000 customers Secure smart grid operation and system stability are the new core tasks as laid are exempted from this requirement: account and functional unbundliung are considered down in the Clean Energy Package: sufficient in this case. • Plan and connect EV charging infrastructure - In principle, DSOs shall not own, develop, manage or operate recharging points for electric vehicles.2 However. under certain conditions, national authorities may allow them to do it. • Integrate local storage facilities – In principle, DSOs shall not own, develop manage or operate storage facilities. However, under certain conditions, national authorities may allow them to do it. • Unlock flexibilities - DSOs may procure flexibility services, including congestion management in their areas, on a market-based approach. • Manage smart metering and data. For further information: • Eurelectric report “The value of the Grid” (2019) • In annex of the present document, you will find the list of relevant provisions for DSOs in the Electricity Regulation (EU) 2019/943 and in the Electricity Directive (EU) 2019/944. 2 European Commission (2019): Art. 36 and 33 of the Electricity Directive (2019/944/EC) 3 Ibid. Art. 32 1 European Commission (2009): Art. 9 of the Electricity directive (2009/72/EC) 3 Figure 1.1 Level of DSO concentration Number of Low Medium High Very high Number of legally Country Code DSOs unbundled concentration concentration concentration concentration DSOs Mainly small, local A mix of DSOs, with One dominant DSO One Austria AT 126 11 DSOs. The three the three largest (more than 80% of DSO company Belgium BE 16 12 largest DSOs accounting for distributed power) usually deliver less more than 60% of and several local Bulgaria BG 4 4 than 50% of distributed power DSOs Croatia HR 1 1 distributed power Cyprus CY 1 1 CzechRep. CZ 290 3 Denmark DK 40 10 4 Estonia EE 34 1 Finland FI 77 9 FINLAND France FR 144 6 Germany DE 883 80 NORWAY Greece GR 1 1 Hungary HU 6 6 SWEDEN ESTONIA Ireland IE 1 1 Italy IT 128 8 LATVIA Latvia LV 11 1 NMARK E Lithuania LT 6 1 D LITHUANIA LUXEMBOURG Luxembourg LU 4 1 5 Malta MT 1 0 IRELAND S TheNetherlands NL 6 6 UNITED KINGDOM POLAND Norway NO 119 7 NETHERLAND GERMANY Poland PL 184 5 B ELG IUM Portugal PT 13 6 1 CZECH REPUBLIC Romania RO 51 8 AKIA SLOV Slovakia SK 3 3 AUSTRIA Slovenia SI 1 1 7 HUNGARY FRANCE SWITZERLAND Spain ES 354 5 SLOVENIA ROMANIA CROATIA Sweden SE 170 6 ITALY BOSNIA AND Switzerland CH 630 0 HERZEGOVINA SERBIA United Kingdom UK 14 6 BULGARIA MONTENEGRO Total 3319 195 FYROM ALBANIA 4 The figure represents the number of DSOs that are not part of a company with power retailing SPAIN TUGAL GREECE activities. All DSOs are functionally unbundled. POR 5 Malta benefits from the exemption from the requirements of Directive 2009/72/EC: the Maltese Electricity Market Regulations require unbundling at an internal accounting level only. 6 In mainland Portugal 10 DSOs operate exclusively LV lines. Only 2 DSOs operate on the islands and do not have to be legally unbundled. CYPRUS 7 The Slovenian DSO – SODO d.o.o. - is leasing the infrastructures and services from 5 Distribution 4 companies. This diversity is due to the historical organisation of distribution and differences in the role of local/national authorities. Most DSOs own the network and are granted an operation licence by local or national public authorities. In some countries, like France or Germany, DSOs are granted concession contracts to operate the network for a certain amount of time while the public authorities remain the owner in the long term. In these cases, DSOs are
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