Policy maker

The EU regulatory and policy framework regulating the power systems planning and operation and the development of the Common Energy Market is changing fast. In particular, the integration of the distributed renewable energy sources (DRES) deserves significant attention in this regard.

INCREASE will contribute to this development by translating innovative technical control strategies into new economic opportunities for the electricity market. They include flexible services from DRES, including the ancillary services. To reap these new opportunities, INCREASE will suggest regulatory and policy reforms on the national and European level. In particular, INCREASE will answer the following questions:

  • Which of the services require market based solutions?
  • Which of the services require an augmented level of regulatory interventions in order to support secure grid operation?

On the policy side, INCREASE will contribute to the discussion on phasing out current FIT support systems for RES, as well as to the reasoning for the alternative and cost-efficient electricity generation solutions.

INCREASE also provides tools that could be used by the policy makers to carry out sensitivity assessments related to the economic and regulatory assumptions. This way, the impacts on the increasing share of renewables as well as on decreasing the environmental side effects can be quantified.

In INCREASE, the assessed regulatory framework provides the boundary conditions for the Ancillary Services and for flexible market products. The following bodies of regulation governing the operation of DRES are investigated:

  • The national legislation of the EU partners,
  • The TSO and DSO grid codes,
  • Regulations, directives and action plans that outline
    • Financial support for the DRES,
    • Connection issues for the DRES, as well as
    • Market provisions for the DRES.

The investigated markets include:

  • Wholesale energy markets,
  • Short-term (e.g. balancing or intraday) markets and
  • Reserve markets. 

The analysis focuses specifically on experience in the EU countries with the highest share of DRES in the network. The viability of the INCREASE solutions is assessed within the current legal and regulatory frameworks, drawing conclusions whether the current regulations of the Ancillary Services and electricity markets need to be changed or adjusted. INCREASE proposes necessary changes in order to enable the INCREASE solutions, validated by DSOs with their real-world industrial experience.