vision.entsoe.euENTSO-E Vision: A Power System for a Carbon Neutral Europe

ENTSO-E Vision: A Power System for a Carbon Neutral Europe Executive Summary This document presents a comprehensive Vision developed by ENTSO-E, of what would be necessary to achieve a Power System fit for a Carbon Neutral Europe. It builds on our previous ENTSO-E Vision 2030, on the long term Ten-Year Network Development Plan (TYNDP) scenarios, and on our RDI Roadmap, and it includes TSOs common intelligence on trends, scenarios, challenges, technology, and innovation. In a fully carbon neutral economy, electricity will be the main and most efficient energy carrier, but it will need to be coupled with other energy sectors. The system of the future will be based on three key elements, all essential for a sustainable, resilient and affordable power system: Carbon Neutral Energy Sources , providing the bulk of the power generation, and for the most part weather-dependent. System Flexibility Resources , to efficiently complement the weather dependent generation and the increase in overall complexity. The Power Grid , connecting generators, consumers and flexibility resources across Europe, and enabling a fully integrated European Energy Market. This future power system in Europe will be: A System of Systems , which will need strong ooperation between transmission and distribution, and amongst different energy systems. All operators will be key enablers and facilitators to make this future energy system work. At the same time more European and more Local , with TSOs providing a critical interface between both dimensions. In this Vision we show that a Power System for a Carbon Neutral Europe is within our reach, but four key elements will need to change to make this reality possible: With the development of large-scale system flexibilities , both short and long duration, that will need to be timed with the future system needs and the gradual phase-out of fossil fuel generation. With an operation of the system that will rise up to the challenge of this much more complex System of Systems, including the management of flexibilities, through innovation and cooperation. With a regulatory framework, planning and permitting procedures that will facilitate the timely deployment of the necessary investments , and encourage efficiency and innovation. With a market design as a key enabler, that must evolve to allocate value where and when it will be most needed for the energy system, while reflecting different consumers’ needs and preferences. The scale of change is such that we need to act now . To transform this vision into reality as soon as possible, we will need a strong cooperation across the whole energy industry, and a permanent dialogue with consumers, stakeholders and public authorities at European, national and local level. TSOs, through ENTSO-E, propose this work as a basis to start building this future together! Download ENTSO-E Vision A Power System for a Carbon Neutral Europe 10 October 2022 Download PDF Introduction The whole of Europe is today clearly committed to playing a leading role in the global fight against climate change, which has become the main driver for policy and legislative work on energy related topics. The EU and most other European countries today have a clear common objective for a fully carbon neutral economy, by 2050 at the latest. Read this chapter Energy System Flexibility A fully carbon neutral energy system, based on renewable energy sources, will become highly weather-dependent (mostly wind and sun). At the same time, the power system will have to stop relying on the fossil fuel dispatchable generation that provides most of the flexibility and ancillary services today. To maintain an acceptable level of adequacy and resilience, to balance the weather-dependency, and to handle the increased volatility of consumption and system complexity driven by electrification, a significant amount of flexibility will be required in all different timeframes and locations. Read this chapter Operating Future Grids The whole of Europe is today clearly committed to playing a leading role in the global fight against climate change, which has become the main driver for policy and legislative work on energy related topics. The EU and most other European countries today have a clear common objective for a fully carbon neutral economy, by 2050 at the latest. Read this chapter Energy infrastructure and Investments We have seen in the previoius section that the future system will be operated using all technological and organizational advances available. But even if it used to its utmost limits, there will still be need for very significant investments in infrastructure: generation, flexibility resources, and the grids that will connect them. Investments are therefore needed in particular in the transmission system, in order to allow the benefits of the energy transition throughout the continent in a timely, secure and reliable way. Read this chapter Market Design for a Carbon Neutral Power System To accelerate the transition to carbon neutrality, electricity markets will need to efficiently facilitate the solutions identified in the previous chapters. Read this chapter Transversal Challenges The four ‘Building Blocks’ describe how the European Power System needs to change in order to contribute to a fully carbon neutral Europe. As a complement, we have also analysed what will be the main three challenges for this future power system: resilience, affordability and sustainability, and examine how they will be handled in the future System of Systems. Read this chapter Potential Game Changers planned, however some others can only emerge later in time as a result of disruptive factors such as scientific breakthroughs, economic feasibility, geopolitical changes, environmental conditions or raw material availability. This is what we call game changers”. Read this chapter Recommendations Read this...