In systems based mainly on wind and solar energy, system flexibility will be essential to meet energy demand in a cost-effective and environmentally friendly manner. In addition to ensuring a balance between energy supply and demand, it allows the system to operate safely, avoiding excessive financial outlays. A new report by the Reform Institute shows how to unlock its development.

Rising demand for electricity related to the electrification of the economy means that flexibility will be much more needed, both on the part of producers and consumers, as well as power grids. Distribution networks deserve special attention in this regard, as they connect over 90% of new photovoltaic and wind power sources. They urgently need modernisation and development. At the same time, some of their problems can be solved by regulatory and technical solutions in the field of flexibility that are already available today. A change in approach to network development planning towards flexibility rather than expansion at any cost will result in savings. However, this requires good coordination and joint, systematic action by the government, operators and the regulator.

How to develop networks more cost-effectively

Traditional modernization of distribution networks to increase their capacity and available connection power is an expensive process that is prone to delays and does not solve all the problems associated with distributed renewable energy generation.

The second option, faster and cheaper one, is to develop grid flexibility, especially in distribution grids, i.e. increasing the grid's ability to balance surpluses or shortages of energy produced (which is particularly important in the case of variable supply from RES).

"The scale of investment needs on the part of power grids, necessary to maintain the dynamic pace of RES capacity development and electrification of the economy, can be reduced through the development of so-called flexibility solutions. Increased network flexibility – based on technical, legal and market solutions – will allow for better use of existing infrastructure and improve the management of limited network capacity. This will translate into a reduction in the scale of capital-intensive infrastructure investments at specific points in the distribution network and the postponement of certain investments, while at the same time “unlocking” network resources available here and now for the development of renewable energy sources and energy storage facilities," assesses Kamil Moskwik, author of the Reform Institute's report entitled ‘Flexibility of power grids’.

Flexibility can be developed by implementing solutions such as dynamic line loading systems, reactive power management services, streamlining the connection process, and better utilisation of existing connections. This includes cable pooling as well as flexible and configurable connection agreements. However, it is important not only to implement individual solutions, but also to change the way network investments are planned – instead of expansion at any cost and modernisation of existing assets, focus on connecting renewable energy sources, automation, digitalisation and smartification.

The EU also wants to increase flexibility

An additional motivation – apart from savings – is the EU process. Poland and other Member States are required to submit an FNA (Flexibility Needs Assessment) report by July 2026, i.e. an assessment of the system's flexibility needs. However, there is a high risk that we will not meet this deadline.

"All of Europe needs to double its network and system flexibility by 2030. Without this, we will not be able to integrate renewable energy sources, reduce energy costs or use existing infrastructure efficiently. For these changes to happen at the required pace, coordination at national and EU level is essential. Hence the European effort to assess system flexibility needs, inventory solutions and, ultimately, pay for flexibility provided by non-fossil fuel sources, i.e. DSR and storage. This is what the FNA report is about. Poland has very little time left to prepare it", comments Marta Anczewska, Senior Climate and Energy Policy Analyst at the Reform Institute.

Flexibility is a joint effort

Ensuring the flexibility of the entire system is an activity that involves many entities: energy producers, consumers and storage facilities alike. The greatest potential for its individual development in the form of generation adjustment or energy demand reduction lies with power plants, combined heat and power plants, large-scale energy storage facilities and industrial plants. In the future, the role of smaller consumers, such as owners of electric cars or heat pumps, will grow.

We need coordination of solutions

Regulators and operators play the leading role, and further progress in unlocking the potential of flexibility depends on their actions. For several years now, distribution system operators have been increasingly active in this area. For example, PGE Distribution has conducted a pilot project on dynamic line loading based on smart grid solutions, and Tauron Distribution has introduced a four-zone dynamic tariff, under which consumers can use an app to track when to reduce and when to increase their energy consumption. Some operators also offer interactive demand control, which, based on forecasts, allows consumers to increase their active power consumption free of charge. However, their technical activities are not currently coordinated.

A network act is a good start

The Polish government has also begun work on streamlining network connections and promoting solutions that promote flexibility. The draft of the so-called ‘network act’ prepared by the Ministry of Energy is at an advanced stage and is expected to be adopted by the Council of Ministers in early 2026. However, this is only the beginning of the implementation of regulations supporting network and system flexibility. In the longer term, regulations are needed to support the demand-side response (DSR) market, storage facilities and flexible generation capacity, as well as the further development of network solutions (smart grids and on dynamic line loading) - the report reads.

Time for a roadmap for flexibility

Experts recommend a systemic approach that will ensure the orderly development of the power system and protect Poles from financing expensive investments.

"The Ministry of Energy and the regulator should, in cooperation with the TSO and DSOs, begin discussions on creating a flexibility roadmap and take active steps to coordinate the development of this market. A bottom-up approach to this issue is not enough – Poland may then miss the opportunity for wise planning of network development, which, according to forecasts, will cost several hundred billion zlotys in the coming decades. Every billion saved thanks to flexibility will translate into savings in our wallets", concludes Anczewska.

The report is available below.