{"id":1666,"date":"2025-11-28T17:25:21","date_gmt":"2025-11-28T16:25:21","guid":{"rendered":"https:\/\/ireform.eu\/publikacja\/elastycznosc-sieci-kluczem-do-tanszej-transformacji-i-nizszych-rachunkow-za-prad-raport-instytutu-reform\/"},"modified":"2026-03-25T10:02:55","modified_gmt":"2026-03-25T09:02:55","slug":"network-flexibility-is-key-to-cheaper-transformation-and-lower-electricity-bills-new-report-by-the-reform-institute","status":"publish","type":"publikacja","link":"https:\/\/ireform.eu\/en\/publikacja\/network-flexibility-is-key-to-cheaper-transformation-and-lower-electricity-bills-new-report-by-the-reform-institute\/","title":{"rendered":"Network flexibility is key to cheaper transformation and lower electricity bills \u2013 new report by the Reform Institute"},"content":{"rendered":"

In systems based\u00a0mainly on\u00a0wind 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\u00a0operate\u00a0safely, avoiding excessive financial outlays. A new report by the Reform Institute shows how to unlock its development.<\/span><\/b>\u00a0<\/span><\/h4>\n

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\u00a0modernisation\u00a0and 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\u00a0good coordination and joint, systematic action by the government,\u00a0operators\u00a0and the regulator.<\/span>\u00a0<\/span><\/p>\n

How to develop networks more cost-effectively<\/span><\/b>
\nTraditional 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.<\/span>\u00a0<\/span><\/p>\n

The second\u00a0option,\u00a0faster and cheaper\u00a0one,\u00a0is to develop grid flexibility, especially in distribution grids,\u00a0i.e.\u00a0increasing the grid’s ability to balance surpluses or shortages of energy produced (which is particularly important in the case of variable supply from RES).<\/span>\u00a0<\/span><\/p>\n

The scale of investment needs on the part of power grids, necessary to\u00a0maintain\u00a0the 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 \u2013 based on technical,\u00a0legal\u00a0and market solutions \u2013 will allow for better use of existing infrastructure and improve the management of limited network capacity.\u00a0This 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 \u201cunlocking\u201d network resources available here and now for the development of renewable energy sources and energy storage facilities,” assesses Kamil\u00a0Moskwik, author of the Reform Institute’s report entitled \u2018Flexibility of energy networks\u2019.<\/span>\u00a0<\/span><\/p>\n

Flexibility can be developed by implementing solutions such as dynamic line loading systems, reactive power management services, streamlining the connection process, and better\u00a0utilisation\u00a0of 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 \u2013 instead of expansion at any cost and\u00a0modernisation\u00a0of existing assets, focus on connecting renewable energy sources, automation,\u00a0digitalisation\u00a0and smartification.<\/span>\u00a0<\/span><\/p>\n

The EU also wants to increase flexibility<\/span><\/b>\u00a0<\/span><\/p>\n

An\u00a0additional\u00a0motivation \u2013 apart from savings \u2013 is the EU process. Poland and other Member States\u00a0are required to\u00a0submit\u00a0an FNA (Flexibility Needs Assessment) report by July 2026,\u00a0i.e.\u00a0an assessment of the system’s flexibility needs. However, there is\u00a0a high risk\u00a0that we will not meet this deadline.<\/span>\u00a0<\/span><\/p>\n

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\u00a0costs\u00a0or use existing infrastructure efficiently. For these changes to happen at the required pace, coordination at national and EU\u00a0level\u00a0is essential.\u00a0Hence\u00a0the European effort to assess\u00a0system flexibility needs, inventory\u00a0solutions\u00a0and, ultimately, pay\u00a0for flexibility provided by non-fossil fuel sources,\u00a0i.e.\u00a0DSR and storage. This is what the FNA report is about. Poland has\u00a0very little\u00a0time left to prepare it<\/span><\/i>\u00a0–\u00a0comments\u00a0<\/span>Marta\u00a0Anczewska,\u00a0Senior\u00a0Climate and\u00a0Energy\u00a0Policy\u00a0Analyst at the\u00a0Reform Institute.<\/span><\/b>\u00a0<\/span><\/p>\n

Flexibility is a joint effort<\/span><\/b>\u00a0<\/span><\/p>\n

Ensuring the flexibility of the entire system is an activity that involves many entities:\u00a0energy producers,\u00a0consumers\u00a0and 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\u00a0facilities\u00a0and industrial plants. In the future, the role of smaller consumers, such as owners of electric cars or heat pumps, will grow.<\/span>\u00a0<\/span><\/p>\n

We need coordination of solutions<\/span><\/b>\u00a0<\/span><\/p>\n

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\u00a0Distribution\u00a0has 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.<\/span>\u00a0<\/span><\/p>\n

A network act is a good start<\/span><\/b>\u00a0<\/span><\/p>\n

The Polish government has also begun work on streamlining network connections and promoting solutions that promote flexibility. The draft of the so-called \u2018network act\u2019 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\u00a0facilities\u00a0and flexible generation capacity, as well as the further development of network solutions (smart grids and\u00a0on dynamic line loading)<\/span><\/i>\u00a0–\u00a0the report reads.<\/span>\u00a0<\/span><\/p>\n

Time for a roadmap for flexibility<\/span><\/b>\u00a0<\/span><\/p>\n

Experts recommend a systemic approach that will ensure the orderly development of the power system and protect Poles from financing expensive investments.<\/span>\u00a0<\/span><\/p>\n

The Ministry of Energy and the regulator should, in cooperation with the TSO and DSOs, begin discussions on creating a\u00a0flexibility\u00a0roadmap and take active steps to coordinate the development of this market.\u00a0A bottom-up approach to this issue is not enough \u2013 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<\/span><\/i>,\u00a0concludes\u00a0<\/span>Anczewska.<\/span><\/b><\/p>\n","protected":false},"featured_media":1577,"parent":0,"template":"","meta":{"_acf_changed":false},"tags":[],"obszar-tematyczny":[85],"priorytet":[],"rodzaj-dokumentu":[84],"class_list":["post-1666","publikacja","type-publikacja","status-publish","has-post-thumbnail","hentry","obszar-tematyczny-clean-industry","rodzaj-dokumentu-reform-institute-report"],"acf":[],"yoast_head":"\nNetwork flexibility is key to cheaper transformation and lower electricity bills \u2013 new report by the Reform Institute - Instytut Reform<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ireform.eu\/en\/publikacja\/network-flexibility-is-key-to-cheaper-transformation-and-lower-electricity-bills-new-report-by-the-reform-institute\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Network flexibility is key to cheaper transformation and lower electricity bills \u2013 new report by the Reform Institute - Instytut Reform\" \/>\n<meta property=\"og:description\" content=\"In systems based\u00a0mainly on\u00a0wind and solar energy, system flexibility will be essential to meet energy demand in a cost-effective and environmentally friendly manner. 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