The report builds on Eurelectric’s 2021 ‘A flexible power system in Europe’ report and describes the implementation of Article 32 of the Electricity Directive (EU) 2019/944 in the daily practice of Distribution System Operators (DSOs). It focuses on the experiences of DSOs in different Member States with various flexibility mechanisms and their benefits.
Types of ways to access flexibility
This report focuses specifically on Distributed Flexibility, or “Flexibility for Distribution Grid Needs”, as per the newest proposal of ENTSO-E and EU DSO Entity on the methodology for assessing flexibility needs that was approved by ACER in August 2025.
EU Member States outline four main mechanisms to enable flexibility:
- Rules-based Approach: codes and rules that impose detailed flexibility requirements for the same set of network users.
- Network Tariffs: tariff structures designed to influence network user’s behaviour for a more efficient grid use and to help mitigate congestion in the distribution network.
- Flexible Connection Agreements: bilateral agreements between DSOs and network users for the provision of flexibility as part of the connection terms (these can be market-based).
- Market-based Procurement: DSOs and TSOs procure flexibility from the market actors that are already connected, through short or long-term contracts or platforms.
Examples of Mechanisms
The report provides examples of flexibility mechanisms, including:
- Rules-based Approach: examples from France and Germany, where flexibility is embedded in network design and connection agreements of specific network users as well as in operational procedures.
- Network Tariffs: examples from France and Spain, showing how time-of-use structures influence consumer behaviour.
- Flexible Connection Agreements (FCAs): examples from the Netherlands, France, and Ireland, demonstrating how voluntary FCAs help manage grid congestion.
- Market-based Procurement: examples from France, the Netherlands, and Portugal, illustrating how flexibility is procured through market mechanisms.
Conclusion
Rules-based, Flexible Connection Agreements (FCAs), and market-based procurement flexibility mechanisms (explicit flexibility tools) as well as network tariffs (implicit flexibility), have significant potential in certain network areas to benefit both network users and grid operators in optimising the development and operation of electricity networks in a secure and efficient way[1]. Because of this potential, it is crucial that these mechanisms are understood and accepted by network users. Each of the above flexibility tools have their own benefits and success factors and they mutually complement each other.
But, there is no one-size-fits-all solution. National legislation and regulation must allow DSOs to use all four flexibility mechanisms when these are technically feasible and to select the most appropriate solution or combination of solutions available for efficient network development and operations, to keep network tariffs cost-efficient.
[1] All what is described here is of course coordinated with other uses of flexibility by generators and suppliers.