On 9 February, DSO Entity had the privilege of hosting Anca-Iulia Cimpeanu, Deputy Head of Unit C4 at DG ENER, in a comprehensive webinar presenting DSO Entity’s Annual Plan 2024 to its members.
During the discussion, Ms. Cimpeanu gave a detailed overview of the recently published Grid Action Plan, the importance of DSOs, and the key-role of DSO Entity in delivering several of the action points. She also provided insights on the next steps to be taken at the European and national level to empower grids.
A Key role for DSOs in the Grid Action Plan
Ms. Cimpeanu delivered a detailed presentation of the Grid Action Plan, enlightening members on the pivotal role DSO Entity is expected to play in implementing 7 out of the 14 action points of the non-legislative text.
Ms. Cimpeanu reminded the attendees of the scale of the challenge faced by DSOs. Among the EUR 600 billion needing to be invested in the grid by 2030, two-thirds will be required for the distribution grid. Reaching this massive rise of investment will be crucial to successfully integrate more than 70% of new renewable energies anticipated at DSO level.
Ms. Cimpeanu presented the key points of the Grid Action Plan involving DSO Entity, meaning network development planning, grid availability and connection, grid smartening, funding, investments, and remuneration of DSOs, permitting and stakeholder engagement, and finally supply chain standardisation.
She further provided insights into the Commission’s priorities, singling out some key actions points of the text:
- Action Point 3 was presented as crucial to the Commission as it emphasises DSO Entity’s the importance in mapping development plans, sharing best practices, and providing recommendation to support network development planning.
- Action Point 4 gives way to the development of anticipatory investments at the distribution level. Ms. Cimpeanu mentioned an upcoming Commission’s guidance on the topic in early 2025, that will consider the perspective of the distribution level.
- Permitting and public acceptance were underlined as crucial topics as well for the Commission. Ms. Cimpeanu highlighted the Commission’s ambition to develop guidance taking into account best practices of the distribution level, to both reinforce stakeholder engagement and prevent local opposition to the deployment of grids.
“The political ambition to support the grids is there, and the role of the distribution level has been recognised.” Anca Iulia Cimpeanu
Funding opportunities for DSOs
Funding opportunities also were mentioned by Ms. Cimpeanu as being of crucial interest for the Commission, as she discussed Projects of Common Interest (PCIs) and the still limited participation of DSOs in the process. Ms. Cimpeanu referred to the publication of the new list of projects in April 2024 that will feature only five smart electricity grid projects out of 166 projects in total. She highlighted the Commission’s eagerness to receive more smart grids applications in autumn 2024. It was highlighted that DSO Entity could support the spread of information on these funding opportunities in the next round of applications.
She further cited the advantages of being part of the PCIs list, mentioning the faster permitting procedures for projects, regulatory advantages, as well as Union-level funding opportunities, such as the possibility to apply to funding from the Connecting Europe Facility (CEF).
Next steps: DSOs to stay in the focus
Before closing, Ms. Cimpeanu reiterated the continuing work for the implementation of the Grid Action Plan. The role of the grids, and especially the distribution level, has been high on the political and legislative agenda of the last year, with key legislation being introduced such as the Electricity Market Design and the Grid Action Plan, setting up the track for the next Commission as well.
She further delved into initiatives regarding grids, mentioning the organisation of a high-level "Clean Transition Dialogue on Energy Infrastructure" hosted by the Vice-President of the Commission, Maroš Šefčovič, on 26 February 2024. This would be an occasion to further discuss integrated energy infrastructures and look beyond the implementation of the Grid Action Plan provisions on funding opportunities. Ms. Cimpeanu mentioned for instance the Commission’s considerations for the creation of a DSO-focused financing instrument within the next multi-annual framework (MFF), although no further details could be provided on the matter as of now.
Although the upcoming elections are blurring the detailed expectations on grids initiatives, Ms. Cimpeanu assured our members that political institutions now have a clearer vision of the role and needs of both grids and DSOs, and their importance in reaching the European climate targets.