The Role of Electricity Distribution Remuneration in Promoting Flexibility from connected users. Joint ISGAN WG9 - BRIDGE RWG Discussion paper

M.A. Ruiz, J.P. Chaves, M. Troncia

Summary:

This report has been developed within the framework of international collaboration between ISGAN, BRIDGE, and the European Commission’s BeFlexible project. It reflects the joint efforts of project partners to analyse how electricity distribution remuneration schemes can promote an efficient use of flexibility solutions by DSOs. The results and discussion presented here combine regulatory principles with practical evidence from prior experience, survey data, and quantitative evidence from previous analyses. The aim is to provide a structured overview of remuneration schemes across several jurisdictions and to offer regulatory recommendations to enable the efficient integration of flexibility solutions into distribution network planning and operation.

Spanish layman's summary:

El informe analiza cómo los esquemas de remuneración de la distribución condicionan el uso de flexibilidad por los DSO. Compara enfoques CAPEX/OPEX entre países y propone reformas regulatorias para una planificación eficiente y adaptable.

English layman's summary:

The report analyses how electricity distribution remuneration schemes influence DSO incentives to use flexibility. It compares CAPEX/OPEX approaches across jurisdictions and proposes regulatory reforms to promote efficient, adaptable network planning.

Keywords: Electricity distribution remuneration, DSO regulation, flexibility, CAPEX/OPEX, incentive regulation, adaptable planning, distributed energy resources, smart grids

IIT Project: BeFlexible (BeFlexible)

Funding entity: Comisión Europea. Horizon Europe

Publication date: 15-Sep-2026