Ownership by regulated entities, or network operators

A key element of the ‘Winter Package’ of legislative proposals issued at the end of November 2016 is the new electricity market design reforms of the Third Energy Package.  It includes the recasting of the Electricity Directive, which incorporates clarification on the role of distribution system operators (DSOs) and of transmission system operators (TSOs) with respect to energy storage.

The draft Directive says that network operators shall not be allowed to “own, develop, manage or operate” energy storage facilities.  By way of derogation, however, Member States may allow network operators to own, develop, manage or operate storage facilities if the following conditions are fulfilled:

  • other parties, following an open and transparent tendering procedure, have not expressed their interest to own and operate storage facilities;
  • storage facilities are used by network operators only for the efficient and secure operation of their system;
  • the regulatory authority has granted its approval.

Regulatory authorities shall perform at regular intervals or at least every five years a public consultation in order to re-assess the potential interest of market parties to develop energy storage facilities. In case the public consultation indicates that third parties are able to own and operate such facilities, Member States shall ensure that network operators’ activities in this regard are phased-out.

EASE is generally pleased with the proposed regime as it is similar to the position that EASE posited in September 2016.

For more information, contact Ms Anneli Teelahk (a.teelahk@ease-storage.eu).

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