The energy transition corresponds to a change from a centralised system to a more complex integrated electricity system, with decentralised and centralised co-existing. The new system also sees new actors, such as aggregators, active customers, energy communities and other Distributed Energy Resources (DERs). This chapter describes ENTSO-E’s activities concerning the TSO–DSO partnership and demand-side flexibility.

Integration of distributed flexibilities

A key area for TSO–DSO cooperation is active system management and the coordinated use of distributed flexibility. Storage, distributed generation and customer participation through demand-side response have the potential to provide new services for the grid and the system. These are known as distributed flexibilities, and their integration in the operation and market process will be key to efficient management of the electrical system of the future.

ENTSO-E pursued its cooperation with the EU DSO Entity on this topic with the approval of a Joint Roadmap on Distributed Flexibility describing the common system operators’ perspective on new rules enabling demand-side flexibility.

The report investigates and provides recommendations for the evolution of the regulatory framework regarding four areas: market access and rules for aggregation, product design and procurement, T&D coordination processes, and finally measurement, validation and settlement of flexibility services. Stakeholders were consulted during the development and the final deliverable was shared with the European Commission and ACER.

In complement to this top-down regulatory analysis, ENTSO-E and Frontier Economics have published a report which investigates the ownership and operating models of eight platforms where flexibilities can be traded and that facilitate dispatch and/or settlement of energy or system services between TSOs, DSOs and DERs.

Memorandum of understanding

The Assemblies of ENTSO-E and the EU DSO Entity both approved in 2021 a MoU which provides a framework for the two Associations to fulfil their legal obligations as per article 30(1) and 55(2) of Regulation (EU) 2019/943¹⁹. It covers the following areas: development and amendments of network codes and guidelines, cooperation on the monitoring of network codes and guidelines, promotion of best practices related to the planning and operation of transmission and distribution systems, as well as provisions to facilitate institutional cooperation between the two Associations.

Other areas of cooperation