From distribution networks to smart distribution systems : rethinking the regulation of European electricity DSOs

Each semester the THINK project publishes two research reports based on topics proposed by the European Commission.Topic 12QM-01-13-152-EN-CQM-01-13-152-EN-NAn increasing deployment of distributed energy resources allows for new business models that have the potential to substantially change today’s electricity markets. These changes bring challenges for distribution system operators and their regulation alike. This THINK report sheds light on the missing blocks in current regulation, recognizing DSOs as regulated monopolies, but also as key players along the value chain. We provide insights on how regulation should be adapted so that DSOs are incentivized to facilitate the market entry of welfare-enhancing technologies efficiently and in a timely fashion, but also to exploit distributed energy resources to manage the distribution system efficiently.The THINK project (2010-2013) is funded by the European Commission under the Seventh Framework Programme, Strategic Energy Technology Plan. (Call FP7-ENERGY-2009-2, Grant Agreement no: 249736). Coordinator: Prof. Jean-Michel Glachant and Prof. Leonardo Meeus, Florence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute