Smartening the Energy Grids and Cybersecurity

This workshop will explore grid-enhancing technologies and smart network solutions for EU transmission and distribution networks, and discuss how their adoption can be effectively and efficiently enabled. It will also examine the evolving cybersecurity framework resulting from the implementation of the NCCS.

Interconnected and stable energy networks are the backbone of the EU’s internal energy market and key enablers of the green transition. To help deliver the European Green Deal, the European Commission proposed a Grid Action Plan in November 2023 to ensure that EU electricity grids operate more efficiently and are deployed faster and more widely. The Commission estimates that €584 billion in investment will be needed in electricity grids this decade—representing a substantial share of the total investment required for a clean energy transition in the electricity sector.

The Action Plan highlights two areas for future focus: cross-border interconnections and national transmission and distribution grids. In particular, distribution networks will need to grow and evolve to accommodate increasing decentralised renewable generation and new flexible demand (e.g. heat pumps and electric vehicle charging). These grids are assuming new roles, becoming facilitators of a more complex system—and must evolve into smart grids: digital, real-time monitored, remotely controllable, and cybersecure. Research and innovation will be crucial in supporting this transformation, especially as around 40% of Europe’s distribution networks are over 40 years old and in need of modernisation. Industry estimates suggest that €375–425 billion in distribution grid investment will be needed by 2030.

Smart grids offer at least two major benefits. First, they make the system more flexible, supporting the energy transition at lower cost. In many cases, smarter solutions can even substitute for traditional capital investments in grid infrastructure. Second, smart grids enable better connection and management of flexible resources—critical for integrating increasing shares of intermittent renewables.

Smart solutions should become an integral part of network development planning at all levels. Network operators should be encouraged—and possibly incentivised—to adopt such solutions when they offer more cost-effective alternatives to conventional grid investments. Regulators should ensure that the regulatory framework does not inadvertently favour physical infrastructure over smart solutions, and may even promote the adoption of grid-enhancing technologies through targeted incentives.

However, smarter networks are more exposed to cybersecurity threats. A Network Code on Cybersecurity for the EU electricity network (NCCS), adopted in 2023, sets a European standard for the protection of cross-border electricity flows. It includes rules on risk assessment, minimum requirements, certification of cybersecurity products and services, as well as crisis management procedures.

Workshop Structure:

This Policy Workshop will explore grid-enhancing technologies and smart network solutions available for EU transmission and distribution systems, along with the regulatory and cybersecurity frameworks needed to enable their effective implementation. The programme will include:

• Session I (morning): Focus on available technologies to enhance the performance of EU transmission and distribution networks, and how they can support integration of decentralised and flexible resources.

• Session II (morning): Exploration of regulatory tools that could incentivise the adoption of smarter network solutions.

• Session III (afternoon): Discussion on the main cybersecurity threats facing EU energy networks, and how the NCCS seeks to address them.

Sustainability Assessment:

The FSR evaluates the sustainability and carbon footprint of all events in its Regulatory Policy Workshop Series. This Workshop will be held in person to foster more effective dialogue. Participants travelling to Florence by car or air will be encouraged to offset the carbon emissions linked to their travel. This approach aims to strike a balance between the value of face-to-face engagement and the environmental impact of the event.

Please note that this event is by invitation only.