Report D1.3-Part A “Current state of and recommendations for improvement of the network regulations for large-scale integration of DER into the European electricity market” presents a complete overview of the key issues concerning changes required in network regulation under a European scenario with large penetration of DER. Even though the role of Transmission System Operators (TSOs) and transmission networks is deemed increasingly important for enabling more DER in the system, distribution networks and Distribution System Operators (DSOs) will be especially affected by growing levels of DER. This report reviews the current regulation of distribution networks in the European Union Member States (MS), with an emphasis on new MS. The focus is placed on those aspects that might hinder the future integration of DER. Several regulatory issues have been identified. Recommendations to improve the current situation are proposed for each separate topic considered, taking into account the position of both DER and DSOs in the electricity system. Regarding economic signals sent to DER, connection charges and cost reflective use-of-system charges together with incentives to provide ancillary services are deemed the key aspects. Concerning DSOs regulation, unbundling from generation and supply according to the European Electricity Directive, incentives for optimal planning and network operation considering DER, including energy losses, quality of service and incremental DER-related costs, and innovation schemes to migrate to active networks are the most relevant topics. Finally, the interaction between demand response mechanisms and DSOs is analyzed.
IIT Project: SOLID-DER (SOLID-DER)
Funding entity: Comisión Europea. FP6