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{{cquote|Energy as a commons? With paradigms , new markets and opportunities arising with digitalising in the energy sector and democratising means of production and distribution, how can regulation be designed in such a way that energy systems in these markets are equitable and ensure participation across society?}}

The Committee on Regional development in Heidelberg will focus on the power shift from '''centralised to decentralised ''' distribution systems. With EU citizens' growing awareness of '''environmental issues''', new '''technological developments ''' and '''[[Smart_grid|smart power grids ]]''' on the horizon, a shift towards a distributed system that includes consumers and turns them into co-producers is a possible future for Europe's energy union. There are many challenges that have to be met before such a transfer can take place: The '''liberalisation ''' of the energy market is still not fully implemented and few investments are in place to fund distributed systems. Moreover, the data recorded through power grids raises questions concerning '''data storage ''' and '''protection ''' and there is currently no strategy on who would regulate a European-wide power grid and how. Finally, many citizens seem to be “energy illiterate”, lacking the necessary knowledge to participate in a new decentralised system. To overcome these obstacles and ensure a bright future for distributed systems in the energy union is what REGI will cover in committee work and resolution.<br />

== The Past: Distributing energy the traditional way ==

* While energy production reliant on coal and other fossil fuels decreased over the last 20 years and the percentage of renewables in the EU's energy mix is steadily increasing, the long-awaited energy revolution has yet to start and the EU's amount of energy production is decreasing as a whole.<ref>http://ec.europa.eu/energy/sites/ener/files/documents/2014_energy_market_en.pdf</ref> Especially in times where demand and consumption are still steadily increasing, this become more and more of a problem.<br />[[File:Traditional Power Grid.JPG|thumb|The traditional power grid]]* production Energy distribution systems are traditionally centralised and one- transmission directional: A power plant of any kind generates the energy that is then transmitted. Distribution systems then proceed to, as their name would suggest, distribute the energy to the consumers.<ref>http://www.edsoforsmartgrids.eu/home/why- distribution smart- consumergrids/</ref>* Electricity takes Nowadays electricity also tends to take over other forms of energy (as well, as shown by the rising popularity of electric cars etc.)* RussiaThis may accelerate the ever-EU relations etcgrowing demand for energy even further. increase uncertainty* Current European Energy facilities will have to On the infrastructural side of things, the ageing energy infrastructure of most Member States should also be modernised soon* Energy taken into consideration. This stands in stark contrast with many modern energy-related technologies such as smart grids, renewable energy sources as well as energy trading taking oversystems.* More and more people are installing solar panels on their own<br />

While With decreasing EU energy production reliant on coal but increasing demand and other fossil fuels got less over the last 20 years and the percentage of renewables in consumption, geopolitical issues such as the EU's energy mix is steadily increasing, the long-awaited energy revolution has yet to arrive.[http://ec.europa.eu/energy/sites/ener/files/documents/2014_energy_market_en.pdf]<br />Energy distribution systems are traditionally centralised and one-directional: A power plant of any kind generates Russia tensions that have significant influence on fossil fuel imports into the energy that is then transmittedEU gain relevance. Distribution systems then proceed to, as their name would suggest, energy

== The Present: Obstacles to be addressed ==

=== The economic dimension ===

* most As of now, almost all of the energy distribution is done within centralised systems still centralised* little investments . Investments into the technology of smart grid projects* grids have been relatively low and are coming from governmental resources only. Furthermore, the energy market rules need would have to be newly defined* and the roles of [[Distribution System Operators (DSOs) ]] and [[Transmission System Operator|Transmission System Operators (TSOs) need to be alternated and defined]] would change fundamentally.<br /> * energy Energy markets are often unpredictable* how can and uncontrollable, which is why the question whether affordable energy prices for consumers can be ensured?* assured has been raised. Apart from that, only large infrastructure programmes are have been funded at the moment. 

=== The societal dimension ===

* Energy illiteracy: In the current system, the user is a passive consumer, always dependent on utility companies, and ignorant of how the energy system works* currently . As it is uncertain whether benefits would outweigh the costs outweigh benefits* for consumers and the liberalisation of the energy market is still ongoing* will things . On the question whether a possible European-wide power grid should also be regulated on a national or transnational (European) level? (see energy meters)* , opinions are divided. On top of that, it is still uncertain how consumers are consumers going to be motivated to become co-producers of energy?* , how is the required knowledge about grid possibilities is spread to citizens?* as well as how can the public be can become involved in large-scale projects?. 

=== The technological dimension ===

* data Data protection: new risks for is a hot topic when talking about the possibilities and opportunities of smart grids. The recording of consumers as ' energy usage data is recorded* security: grid system open to cyber creates a new data risk and opens the door for exploitation if no preemptive measures are taken. Cyber attacks that could disable areas of disabling the grid?* could have dramatic consequences, questioning its reliability: is . With the grid going to be reliable at all times?* data storage: introduction of smart grids, huge sums amounts of data will would need to be recorded* are microgrids a possibility?=== The environmental dimension ===* do renewable means of energy really push smart grids?stored.

== The Future: Smart grids - an outlook to what is possible ==

=== The economic dimension ===

* more In theory, the efficiency through of energy usage would heavily increase in a smart grids* grid-based system, as energy would be used more efficiently and energy overflow could be avoided. The flexibility through of the power grid would therefore be increased, as information of residential on the energy useof residentials enables its efficiency.<br /> * intelligent The EU's smart grid task force presented a possible model for the various actors, their relations and tasks. In its opinion, there should be information and data exchange between the suppliers and aggregators as well as DSOs and TSOs. The generated energy would get to the supplying and flexible grids instead aggregating parties through a balance responsible party through some sort of linear distributionfinancial adjustment mechanism. Consumers could that way get access to the energy as well as obtain grid access. The aforementioned balance responsible parties would serve as the interface with the power exchange market.<ref>http://ec.europa.eu/energy/sites/ener/files/documents/EG3%20Final%20-%20January%202015.pdf</ref>[[File:Possible tasks and relatons in a smart grid system.JPG|thumb|Possible tasks and relations in a smart grid system according to the European Commission's Task Force on Smart Grids.]] 

=== The societal dimension ===

* Through the introduction of smart grids, consumers become turn into co-producers* "of energy as they actively participate in the energy grid. As outlined in the section above, this is only possible through an increase in energy literacy" goes up* of citizens connected to the smart power grid. Subsequently, the decentralisation of energy through the means of smart power grids is only possible through the empowerment of the citizensconnected to it. 

=== The technological dimension ===

* In a smart grid system, both electricity and information are exchanged* ensuring , which is why interoperability in within smart power grids* has to be ensured. The reporting of energy usage to would increase the efficiencyof energy distribution. The European Commission has come forward with various possible systems for managing the data recorded in a smart grid. This includes delegating the responsibility of market facilitation to DSOs, introducing third party market facilitators and an independent central hub as well as solving the problem through [[Data Access Point Managers]].<br />[[File:Smart grids data managment models.JPG|thumb|Three different possible data management models proposed by the European Commission.]] Furthermore, the technology [[microgrids]] should be kept in mind, as they could counteract possible security risks for the grids and manage the power grid at a regional and local level.<br /> One suggestion for an open model for the consumption data flow allows energy service companies to have dynamic data access to both production and consumption of energy in a household. The supplier would also get access to the energy used by a household, enabling a dynamic flow of energy. An interface would record said data, making a note of the amount of energy, gas and hot water being used. Additionally to the dynamic data access, historical data access would be saved through secure data transmission to then be forwarded to suppliers and energy service companies. 

=== The environmental dimension ===

* pushing decarbonisation* Consumers As consumers would be more likely to install renewable sources of energy (e.g. solar panels)* in a smart grid system, democratising energy distribution pushes decarbonisation even further. Additionally, consumers have a greater , more active influence on the amount of renewable energy used in Europe's energy mix.

== The Actors: Who is involved ==

*EU '''European Commission & DG Directorate General on Energy'''The European Commission is the main initiator of European law drafted. Its staff works in a wide variety of different fields and is divided by topics, the so-called Directorates Generals. The Directorate General on Energy deals with all matters related to energy, including the future of smart power grids. It reports to the Commissioner on Energy Miguel Arias Cañete as well as Vice-President of the Commission Maroš Šefčovič who is focussed on the establishment of the Energy Union. The Directorate General is divided into several Directorates. The task force on smart grids works within the framework of the Directorate General on Energyand is lead by Manuel Sánchez-Jiménez. It is noteworthy that the field of energy falls under the group of shared competences for the EU.<br /> *'''Member States’ energy ministries and distribution systems'''The national and regional execution of smart grids and similar technologies still lies in the hands of the Member States and their ministries responsible for energy of course. On the technical side, the various different distribution systems should be taken into account, since one of the reports of the European Commission found that using existing infrastructure is one of the key lessons learned.<br />*Connecting Europe Facility*'''EU citizens as “prosumers”'''The EU citizens have the ground-breaking opportunity to turn from consumers in the old-fashioned power grid system into contributing prosumers in an advanced smart grid system, thus boosting energy efficiency as well as decarbonisation. *'''DSOs and TSOs'''The roles and responsibilities DSOs and TSOs would have will change fundamentally when applying the smart grid idea and should therefore be taken into account. *'''Energy service companies'''With smart grids revolutionizing the energy market as we know it, the future of energy service companies is equally uncertain. What role they will play and especially what the regulatory framework around them should look like is to be defined.

== Measures in Place: What has been done ==

Questions The Energy Union has become more and more important in the recent years. Its goal is it to be answeredensure secure, affordable and climate-friendly energy across the EU.<ref>https://ec.europa.eu/commission/priorities/energy-union-and-climate_en</ref> What are sources of knowledge In its energy and gas directives in 2009<ref>http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009L0072&from=en</ref><ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0094:0136:en:PDF</ref>, the EU set fundamental rules for an internal energy market, revising and expanding another directive from 2003.<br />In its energy efficiency directive from 2012<ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:315:0001:0056:en:PDF</ref> it was decided to shift to a more energy efficient future for the EU citizens 's Energy Union and the directive to look into at deploy infrastructure for alternative fuels was introduced in 2014.<ref>http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0094&from=EN</ref><br /> 2012 was also the year when European Commission prepared for the roll-out of [[smart meters]].<ref>http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012H0148&from=EN</ref> They followed up with a recommendation for the momentdata protection of deployed smart meters as well as smart grids in general.<ref>http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014H0724&from=EN</ref><br /> What are microgrids In preparation for the upcoming legal measures regarding smart grids and technology connected to it, the European Commission released a communication document in 2011, presenting various challenges connected to smart grids, such as funding of smart grid projects, technical standards across the continent, data protection, a regulatory framework, a competitive and open retail market and the continued support for technology and systems behind a smart grid system.<ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0202:FIN:EN:PDF</ref> That was followed up by a similar document in 2012. This time the European Commission outlined the benefits of an open, integrated and flexible energy market and how to get the most out of the internal energy market.<ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do they work?uri=COM:2012:0663:FIN:EN:PDF</ref> How public intervention could have fundamental influence on the energy market was brought up for the first time in 2013 by the European Commission.<ref>https://ec.europa.eu/energy/sites/ener/files/documents/com_2013_public_intervention_en.pdf</ref><ref>https://ec.europa.eu/energy/sites/ener/files/documents/com_2013_public_intervention_swd07_en.pdf</ref><br />

=== Clean In the middle of 2014, the Directorate General on Energy Package ===* released a report on benchmarking results of smart metering deployment, naming the usage of available standards and the right set of functionalities to ensure interoperability and guarantee data protection, the need for a specific data privacy and security framework and getting the consumer on board as the key lessons learned from pilot programmes.<ref>http://eur-lex.europa.eu/rapid/press-release_MEMO-16legal-3986_en.htm* http:content/EN/europa.euTXT/rapidPDF/press-release_MEMO-16-3961_en.htm* https?uri=CELEX:52014DC0356&from=EN</ref><br /ec.europa.eu/commission/priorities/energy-union-and-climate_en>

=== SET-Plan ===The European Strategic Energy Technology Plan (SET-Plan) aims funding of smart grid technologies was up to accelerate the € 3.15 billion in 2013, while 26% was invested in research and development and deployment of low-carbon technologies74% in Demo and Deployment. It seeks to improve new technologies The main investors at the moment are France and bring down costs the United Kingdom, followed by coordinating national research efforts Germany and helping to finance Spain.[[File:Smart grid funding.JPG|thumb|Funding of smart grid projectsin the EU as of 2013.]]

=== TENThe [[SET-Plan|European Strategic Energy Technology Plan]] (SET-Plan) aims to accelerate the development and deployment of low-E ===carbon technologies. It seeks to improve new technologies and bring down costs by coordinating national research efforts and helping to finance projects.<br />The [[Trans-European Energy Networks ]] (TEN-E) – are programmes set up by the EU for the implementation of the European Single Market. The Trans-European Networks aim at "linking island, landlocked and peripheral regions with the central regions of the community”.

== A final outlook Conclusion ==Moving on from a past of the traditional power grids is hampered by various present obstacles such as distribution and transmission system operators as well as energy service companies stuck in the past, lacking knowledge of consumers and possible security risks. The rewards for a transfer towards smart power grids include an energy efficient, decentralised system that includes consumers as co-producers and pushed for the systematic decarbonisation of Europe's energy production.

== Links for further Research ==

* An article about energy as a common good: https://blog.p2pfoundation.net/energy-as-a-common-good/2017/02/22<br />* An article about how future energy technologies will change the life of a consumer: http://energyandcarbon.com/digitalisation-energy-implications/<br />*A citizens' Q&A by the Council of European Energy Regulators: http://www.ceer.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Electricity/Tab3/0C9D9B1CD9645A0EE050A8C03C2F585D<br />*A power point presentation on the historical developments of smart grid regulation and steps ahead: http://iee-empowering.eu/en/wp-content/uploads/2016/03/2-Recent-Policy-Initiatives-by-the-European-Commission_M.SANCHEZ.pdf<br />*A report by the Smart Grid Task Force: http://ec.europa.eu/energy/sites/ener/files/documents/EG3%20Final%20-%20January%202015.pdf<br />

== References ==

[[Category:REGI]]

[[Category:Heidelberg]]

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