Transformation, transmission and distribution

Transformation, transmission, and distribution systems are essential components of the energy supply chain, from generation to end-use. The primary goal in improving these systems is to enhance overall energy efficiency, reduce energy losses, increase reliability, and integrate renewable energy sources. This approach supports the EU’s climate neutrality goals by facilitating decentralised energy production and consumption, thereby optimising the entire energy supply infrastructure. The EU aims to ensure a resilient, efficient, and sustainable energy network by implementing advanced technologies and regulatory measures and promoting energy-efficient practices.

Goal and Objectives

The primary goal of improving transformation, transmission, and distribution systems is to enhance the overall energy efficiency of the energy supply chain from generation to end use. The objectives associated with this element include:

1. Reducing Energy Losses: Minimizing energy losses during the transformation of energy and during its transmission and distribution to end users.
2. Enhancing Reliability: Improving the reliability and resilience of the energy supply infrastructure.
3. Integrating Renewable Energy: Facilitating the integration of renewable energy sources into the grid by optimising transmission and distribution networks.
4. Supporting Decentralized Energy Production: Enhancing the capacity and flexibility of networks to support decentralised energy production and consumption.

Methodologies or Approaches for Implementation

To achieve these goals and objectives, the following methodologies and approaches are recommended:

1. Grid Modernization: Upgrading transmission and distribution infrastructure with advanced technologies such as smart grids improves the efficiency and reliability of the energy supply.
2. Loss Reduction Technologies: Implementing technologies and practices that reduce energy losses in the transformation and transmission process, such as high-efficiency transformers and improved conductor materials.
3. Decentralised Energy Systems: Supporting the development and integration of decentralised energy systems, including microgrids and local renewable energy installations.
4. Energy Storage Solutions: Incorporating energy storage solutions to balance supply and demand, reduce peak loads, and improve grid stability.
5. Demand Response Programs: Implementing demand response programs that enable consumers to adjust their energy use during peak times, enhancing the energy system’s efficiency.
6. Regulatory Measures: Establishing regulations and incentives that promote investments in energy-efficient transmission and distribution infrastructure.

Integration with EED Goals and Key Elements

Transformation, transmission, and distribution are critical components of the overarching goals of the Energy Efficiency Directive (EED) and support several key elements:

• Energy Efficiency First Principle: Improving transformation, transmission, and distribution aligns with the Energy Efficiency First principle by prioritising energy-saving measures in the energy supply chain, reducing the need for additional energy generation.
• Energy Efficiency Targets: Enhancing the efficiency of energy transformation, transmission, and distribution helps achieve energy efficiency targets by reducing overall energy consumption and losses in the supply chain.
• Alignment with Higher Climate Neutrality Goals: Efficient transformation, transmission, and distribution systems support the EU’s climate neutrality goals by facilitating the integration of renewable energy sources and reducing greenhouse gas emissions.
• Multiple Benefits of Energy Efficiency: Improving these systems provides multiple benefits, including reduced energy costs, enhanced energy security, and improved grid reliability and resilience.
• Heating and Cooling Planning: Optimizing the transformation, transmission, and distribution of heating and cooling systems ensures these sectors operate efficiently and sustainably, reducing energy consumption and emissions.
• Heat and Cooling Supply: Efficient transmission and distribution are essential for effective heat and cooling supply, minimising losses and ensuring that energy is delivered efficiently to end users.
• Transformation, Transmission, and Distribution: Focusing on these areas directly addresses the energy supply chain’s efficiency, enhancing the energy system’s overall performance.
• Exemplary Role of the Public Sector: The public sector can lead by example in implementing and showcasing best practices in efficient transformation, transmission, and distribution systems, encouraging broader adoption.
• Energy-Efficient Public Procurement: Public procurement practices that prioritise energy-efficient infrastructure and technologies improve transformation, transmission, and distribution systems.
• Energy Saving Obligations and Obligation Schemes: Energy saving obligations can include requirements for improving the efficiency of transformation, transmission, and distribution, helping to meet overall energy savings targets.
• Energy Audits and Energy Management: Energy audits and effective energy management practices are essential for identifying opportunities to improve the efficiency of transformation, transmission, and distribution systems.
• Efficiency in Data Centers: Data centers with significant energy demands can benefit from efficient transmission and distribution systems to enhance their overall energy efficiency.
• Billing Information: Providing detailed billing information helps consumers understand the impact of efficient transformation, transmission, and distribution on their energy use and costs.
• Awareness Rising: Raising awareness about the benefits of efficient transformation, transmission, and distribution systems encourages broader adoption of energy-saving practices and technologies.
• Energy Professionals: Skilled energy professionals are crucial for designing, implementing, and managing efficient transformation, transmission, and distribution systems, supporting the overall planning and execution process.
• Energy Services: Energy service companies (ESCOs) can play a key role in delivering solutions that enhance the efficiency of transformation, transmission, and distribution systems through energy performance contracts and other service models.
• National Energy Efficiency Fund and Financing: Funding mechanisms and financial incentives are essential for supporting investments in efficient transformation, transmission, and distribution systems, making these projects more viable.
• National Technical Support: Providing technical support and guidance at the national level helps facilitate the adoption of best practices in transformation, transmission, and distribution, ensuring the efficiency of these systems.

By integrating efficient transformation, transmission, and distribution practices across these key elements, the EED ensures a comprehensive approach to improving energy efficiency in the energy supply chain, driving cost-effective energy savings, and supporting the EU’s broader climate and energy goals.

Additional resources

1. Improving Energy Efficiency in Electricity Networks: https://publications.jrc.ec.europa.eu/repository/handle/JRC121757
2. Towards a Regulatory Methodology for Energy Efficiency in Gas Networks: https://publications.jrc.ec.europa.eu/repository/handle/JRC121752
3. https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52013SC0450