Study on network development planning, tariff structures and connection requests for electricity distribution grid

Distribution grids are critical for the energy transition: with the majority of future assets to be connected at the distribution-grid level, the decentralization and decarbonization of the energy system depend on strong and future-ready electricity distribution networks. This study gathers and analyses data from all 27 member states of the European Union through desk research and interviews, covering three topic areas. First, appropriate network planning as the primary strategic process to prepare distribution networks for the energy system of the future. Second, network tariff design and regulatory regimes, which shape the incentive structures and mechanisms by which grid costs are recovered and grids can be used efficiently. Third, the timely and transparent treatment of grid connection requests, where the strong increase in the volume of requests is leading to backlogs, but also spurring new policy tools to manage grid capacity. The study characterizes the status quo, identifies best practices, and delineates recommendations for the way forward in the European Union.