Role of Gas and Electricity Distribution Networks in the European Energy Transition

Last week, GEODE held its annual Spring Seminar in Brussels, titled “Keeping the Grids Momentum: Fostering EU Competitiveness” focusing on the vital role of distribution grids in enhancing industrial competitiveness and advancing decarbonisation. The event brought together representatives from European institutions, regulators, industry stakeholders, and DSOs.  

Speakers discussed key European Commission flagship initiatives, such as the Clean Industrial Deal and the Affordable Energy Action Plan. These highlight the need to strengthen EU industrial competitiveness while accelerating the energy transition, something that is only feasible by unlocking the full potential of energy grids. Electricity and Gas Distribution System Operators face many of the same challenges – the need for regulatory stability, finance models, cost reflective tariffs and access to EU funding.

The European Parliament ITRE Committee recently adopted a report acknowledging the crucial role of electricity distribution grids in ensuring a resilient, reliable and secured energy system and noted that 70% of new renewable energy sources and electricity consumers are connected at the distribution level. Similarly, the study recently conducted by Ready4H2 on the role of gas distribution in supplying hydrogen throughout Europe, estimated that at least half the planned demand for hydrogen will be supplied by gas DSOs.