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Position Paper l Energy System Efficiency: How to maximise the contribution of consumers to cost-effectively accelerate the clean energy transition

Oct 20, 2022

Today, the EU is facing multiple, overlapping challenges: increase the EU energy resilience, address skyrocketing energy prices and achieve the long-term climate neutrality objective.

All of them must be achieved in an efficient way: the EU cannot afford to waste resources by keeping the existing, inefficient centralised energy system or boosting obsolete solutions.

This paper is smartEn’s contribution to ensure that a more efficient energy system is possible, with active consumers at its heart.

To support this objective, it is essential to:

  • set a legal definition of energy system efficiency in EU law which recognises the contribution of system-integrated consumers, including at community level, in making the energy system more efficient.
  • introduce metrics to track progress towards a more efficient system with consumers onboard. smartEn proposes to introduce 3 core KPIs of Decarbonisation, Affordability and Resilience bringing clarity on the criteria that qualify an energy system as an efficient one.

Identifying what needs to be measured will support EU policymakers, Member States, regulatory authorities and system operators in drawing relevant methodologies for assessing the system efficiency impacts of energy planning, policy and investment decisions.

This should prove useful in the context of the REPowerEU plan and the implementation of emergency interventions to address high energy prices, as well as the negotiations on the Fit for 55 package and the revision of the Electricity Market Design.

More NEWS

  • smartEn together with 6 stakeholder organizations and drafting committee members, welcome the new network code proposed by ENTSO-E and the EU DSO Entity. This code is essential for supporting decarbonization and enhancing Europe’s energy security by enabling distributed energy resources (DERs) and demand response. The new code aims to remove the market access barriers, ensuring broad market participation and facilitating market-based procurement of flexibility services. We thank all involved in drafting this proposal and emphasize the need for effective, harmonized, and forward-looking regulations to promote a secure, efficient, and decentralized energy system.

  • Making better use of the grids thanks to the contribution of existing and future connected flexible consumers is an efficient approach to tackle urgently the congestion challenge. The Flexible Demand Management Industry that smartEn represents can empower grid users, i.e. grid connected buildings, industries and electric vehicles, to play an active role in supporting an efficient and smart operation of grids. However, grids must be incentivised to use the flexibility of connected consumers, as already prescribed by EU laws. To support this effort, this paper: Sets out six strategic recommendations for the smart operation of grids which should guide the efficient delivery of the EU Grids Action Plan. Lays the groundwork for a dedicated EU Strategy on Grid Congestion which the new Commission should develop to deliver the European Green Deal by 2030. Such a strategy should foster harmonised approaches to tackle grid congestion issues across the EU, without waiting for lengthy network reinforcement, by harnessing the potential of connected, flexible consumers.

  • The Flexible Demand Management Industry provides solutions to all consumers – citizens, businesses, buildings, electric vehicles (EVs) and industries – to become flexible and be rewarded for playing an active role in the clean energy transition. As such, it needs to be fully recognised as a crucial clean-tech industry in Europe. But as the Flexible Demand Management Industry is very heterogeneous, it is often not easy for it to be identified as a specific industrial base and its significant contribution tends to be overlooked. This is a major gap to fill. This paper intends to inform this effort by answering these 3 questions:  What is the Flexible Demand Management Industry and what are the solutions offered?  Why the Flexible Demand Management Industry matters ?  What is needed in the next EU legislature for the Flexible Demand Management Industry to rightfully become a solid pillar of Europe’s decarbonised economy?

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