The European energy system is facing unprecedented challenges and the electric power distribution sector is therefore required to move ahead fast with the evolving situation. In 2021, the EU DSO Entity – the association representing the DSOs at European level – has started its operations, placing the sector at the heart of EU energy policy implementation, with new duties and responsibilities. The urgent request to deploy more and more renewable energy sources at an extraordinary pace to substitute imported hydrocarbons puts pressure on grid operations, while innovative business models and services, like citizen energy communities, and provision of flexibility, start to occupy DSOs’ investment plans for the future years. Therefore, both innovation and provision of traditional services like grid connection are put under strain by a tense economic situation for DSO’s customers, European consumers and businesses alike. In such fast-evolving situations, regulation cannot focus solely on cost-efficient use of existing infrastructure and investment in grid replacement and reinforcement. To
this end, regulatory experimentation has emerged in several EU countries as a novel approach to enable innovation in the energy sector, while protecting consumers and ensuring a fair energy transition for all Europeans.