Promoting Grid Flexibility Through Policy: Insights from EU Regulatory Frameworks

The energy transition driven by the decentralization and electrification of energy systems significantly impacts electricity distribution and transmission grids. This study, focusing on the distribution level, examines specific policy elements of the regulatory frameworks of five European countries that are crucial for promoting the use of flexibility by distribution system operators (DSOs), as well as solutions that are adopted by them for procuring flexibility. By combining insights from existing literature with interviews with European DSOs, we analyse these barriers and identify those requiring priority action. The paper provides policy guidance with practical recommendations to overcome these barriers, aiming to inform DSOs, policymakers, and field experts. The analysis focuses on the regulatory frameworks of five European countries-Bulgaria, Greece, Spain, Sweden, and Switzerland-highlighting the importance of incorporating the value of flexibility in DSOs' revenue models and mapping solutions for flexibility procurement. The findings underscore the need for regulatory incentives to drive digitalization and ensure efficient grid management, ultimately contributing to the acceleration of the energy transition.