Commission Communication on an EU Strategy for Energy System Integration 

In 2020, the European Commission published a Communication on an EU Strategy for Energy System Integration. The document establishes that “Modern low-temperature district heating systems should be promoted, as they can connect local demand with renewable and waste energy sources, as well as the wider electric and gas grid – contributing to the optimisation of supply and demand across energy carriers.” It paved the way for further system integration across the FF55 Package files.

Electricity Market Design and Commission Recommendation for Member States on energy storage 

In the aftermath of the invasion of Ukraine by Russia, a proposal to revise the Electricity Market Design (EMD) was put forward by the European Commission. It builds on the temporary emergency measures taken to tackle volatile electricity prices and serious concerns about the security of supply, to shield consumers. The revision should further enable the rollout of renewable electricity. EHP believes that in the next round of revision, further integration between electricity and heat grids should be enabled. In parallel, a Commission Recommendation for Member States on energy storage was published, recognising the roll out of DHC and thermal energy storage to provide flexibility to the electricity grid.

Renewable Energy Directive (RED)

The latest revision of the Renewable Energy Directive, REDIII, includes new measures unlocking the potential of DHC as a source of flexibility to the broader energy system. Provisions to promote the rollout of thermal energy storage and increased coordination with the electricity grid demonstrate an increasing awareness of the role of DHC networks in a resilient and increasingly variable energy system. This legislation lays the foundations of a supportive regulatory framework that is vital to enable the rapid deployment of modern district heating and cooling networks, fuelled by renewable and recovered heat sources.

The DHC flexibility toolbox