Distribution system operators observatory : from European electricity distribution systems to reference network

The European electricity sector is undergoing radical changes in every segment of the power industry, from generation to supply. Ambitious policy goals set at European level to enhance the competitiveness, security and sustainability of the EU's energy system have called for major changes in the regulatory, technological, and market structure fields. The distribution sector is particularly affected by these changes. The increasing penetration of local renewable generation and the emergence of demand response enabling solutions are placing new requirements on the distribution networks, posing challenges to the reliability and efficiency of system operation. At the same time, however, these new applications can also create opportunities to manage the distribution grids in a more flexible and efficient way, paving the way to new services to end-consumers. Smart grid concepts and technologies have an important role to play to address these new challenges and opportunities. A variety of solutions are already being tested in Europe, with encouraging results. Identifying the best technical, economic and societal options requires a deep understanding of their impact on the physical distribution networks. Such knowledge is also necessary to evaluate the viability of replicating and scaling up pilot experiences already successfully implemented in Europe.