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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ Similarly, very small generation sites directly connected to the distribution network (i.e., distributed generation) may be disadvantaged because investment needs on the distribution level are usually determined by costumers and not by suppliers, importers or generators as for transmission. Since most distributed generation is based on renewables, this will become increasingly significant in the future [ibid.]. The Commission concludes that “effective large scale integration of intermittent and other non dispatchable energy sources into the electricity system is a problem which will need to be tackled both at transmission and distribution level” [ibid.]. The integration of the main large scale renewable energy sources (wind, solar and tidal) often located far from the point of consumption, with CHP and small renewable energy sources normally located very close to the point of consumption will require (i) increased long-distance transmission capacity, (ii) more load flexibility by means of demand side management, and (iii) active distribution networks managed similar to the transmission network [ibid.]. The 3rd internal market package aims to facilitate the transition towards such a renewables proof electricity grid. Smart metering and electricity systems The 3rd package encourages the long-term modernisation of electricity grids and provides the environment for the implementation of smart grids across Europe in view of supporting decentralised and small-scale generation and energy efficiency. The introduction of intelligent metering systems may be subject to an economic assessment (i.e., a cost- benefit analysis), which needs to be finalised by 3 September 2012. Where member states’ economic assessment is positive, at least 80% of consumers should be equipped with intelligent meters by 2020. The Commission has initiated a Task force for smart grids and this group should provide a preliminary vision on the functionalities, i.e. services and standards, the regulatory recommendations for data safety, handling and protection and the roles and responsibilities of actors involved by June 2010. Public service obligations and authorisation procedures The electricity and gas Directives state that the member states may impose public service obligations on undertakings operating in the electricity sector, concerning environmental protection and including energy efficiency, energy from renewable sources and climate protection (Art. 3(2)). Furthermore, the electricity Directive requires that concerning authorization procedures for new capacity the members states must take into consideration “the contribution of the generating capacity to meeting the overall Community target of at least a 20 % share of energy from renewable sources in the Community’s gross final consumption of energy in 2020” (Art. 7 (2) (j)). Concerning distribution, the members states have the possibility to require DSOs, “when dispatching generating installations, to give priority to generating installations using renewable energy sources or waste or producing combined heat and power” (Art 25 (4)). Many smaller producers of renewable energy have complained that a lack of transparency and blocked access to energy grids are preventing them from competing on the market. The above mentioned new provisions should contribute to resolving this problem. Regulatory authorities National Regulatory Authorities (NRAs) play a key role in facilitating the entry of renewables to the market. In the electricity Directive the general objectives of the regulatory authority include promoting the integration of large and small-scale production of electricity from renewable energy sources and distributed IP/A/ITRE/ST/2009-11 & 12 79 PE 440.278PDF Image | Policy Department Renewable Technologies
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