This new ENTSO-E paper highlights the challenges which TSOs are increasingly facing, and the barriers to effectively tackle those challenges posed by currently applied remuneration models. While recognizing individual differences across countries and that there is no “one-size-fits-all” solution, the paper also proposes a range of available tools in order for TSOs to be valuable enablers of the European Green Deal.

A strong and secure transmission network is a widely recognised prerequisite to meet European energy and climate policy goals. Missing grid capacity not only hinders further integration of renewable energy sources; it also puts system security and sustainability goals at risk. Without the necessary investments in European power transmission infrastructure, the energy and climate targets will stay beyond reach.

To cope with the huge investment demands, ENTSO-E calls for an adaptable and fit-for-purpose framework that allows for sufficient capital remuneration but also sets adequate long-term incentives for performance and innovation.

READ THE EXECUTIVE SUMMARY HERE

READ THE FULL PAPER HERE