Recommendations
General recommendations
- The future will be a System of Systems, which means that:
- TSOs, DSOs, and other energy sectors should cooperate to make the most efficient use of all types of flexibility resources and coordinate the planning and operation of the different systems.
- Energy markets should be designed to ensure seamless market integration between transmission and distribution and across sectors.
- Within this System of Systems, an adequate level of system resilience should remain a priority for TSOs, other operators, policy makers and stakeholders.
- All proposals and actions for the future system should take into consideration their impact on the affordability of the system for European consumers, as well as a sustainability assessment.
- Given the scale and urgency of change, we all need to act now to make this future possible.
Specific recommendations
- ENTSO-E will produce with relevant stakeholders a pan-European assessment of flexibility needs for the whole timespan of the energy transition, to guide a cost-efficient deployment of flexibility resources.
- Appropriate market mechanisms should be developed to ensure that both short and long duration flexibility resources are timely deployed and efficiently procured where and when needed.
- The regulatory framework should evolve to value innovation, facilitate financing and permit fast and clear authorization processes that are respectful of environmental requirements.
- TSOs will further enhance the planning processes to increase transparency and inclusiveness for local communities and stakeholders.
- TSOs, DSOs, manufacturers and research centres should further develop knowledge and tools to optimise the operation of the systems, including advanced modelling and decision support.
- TSOs and relevant operators of the System of Systems should increase cooperation with standardisation bodies and IT vendors to create standard rules, protocols and digital platforms enabling interoperability and cross sector overview.
- Strengthen investment signals for carbon-neutral energy and flexibility sources by facilitating the introduction of well-designed two-way Contract for Differences and where necessary capacity remuneration mechanisms.
- Increase accuracy of short-term price signals of day-ahead, intraday and balancing markets in space and time to optimise dispatch, flexibility and grid use.
- Develop retail pricing solutions that facilitate consumers engagement and demand response while ensuring affordability and consumer protection.
- TSOs will increase cooperation with all other operators, manufacturers, academia and policy makers to accelerate the innovations that will be needed to achieve an efficient energy transition:
- Especially in storage and digitalisation technologies.
- Whilemonitoringtrendsforearlyspottingofnewgame changers.