How joint city-grid interfaces can improve energy system planning for DSOs

As a core component of local energy action plans (LEAP), the city-grid interface focuses on the relationship between the action plan and the grid, with the intent to provide a structured framework to translate its ambitions into grid aware and implementable actions. 

Fundamentally, a city-grid interface is a commitment that formalises the relationship between a city and a DSO on long-term local energy system planning. 

In Finland, with the DSO Caruna and the City of Espoo, for example, the city-grid interface was established with a memorandum of understanding formalising the collaboration between the parties and information exchange. 

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Drawing on interviews through the COPPER project with seven European DSOs – Caruna (Finland), ČEZ Distribuce (Czech Republic), E-REDES (Portugal), ESO (Lithuania), Fluvius (Belgium), i-DE (Spain) and Varberg Energi (Sweden) – the E.DSO paper aims to investigate the use of city-grid interfaces in progressing service delivery in cities. 

More than three-quarters of the EU’s population lives in cities, and these thus account for the greatest amount of energy that is consumed. 

Cities are also set to be especially affected by local grid constraints with the increasing electrification of transport and building services. In some urban areas, delayed grid connections, congestion issues, and limitations to infrastructure expansion are already limiting residential and commercial activities.  

While this clearly requires more investment in infrastructure, supportive regulation and public support tools, there is also a need for proactive network planning and enhanced cooperation with critical stakeholders. 

In this context, the increasing need for collaboration between cities and DSOs is apparent and a key factor towards delivering the energy transition. 

The city-grid interface is intended as a structured approach from cities and DSOs, where they recognise each other as strategic partners, with the formalisation of a structured governance process, long-term aligned priorities and plan and standardisation of data exchange and operational infrastructures.  

To accelerate the development and replication of promising city-grid interface models from across Europe, clear policy action is called for, E.DSO states in the report. 

• Regulatory support: Adjusting energy and planning regulations to formally enable and incentivise co-planning between DSOs and municipalities, ensuring city-grid interfaces are integrated efficiently without creating unnecessary administrative burdens. 
• Capacity building: Investing in joint training programmes and funding dedicated local energy coordination units to bridge the technical expertise gap between smaller municipalities and DSOs.  
• Standardisation: Developing standardised guidance, templates and data sharing protocols, such as model MOUs or digital tools, to lower the barrier to entry for new city-DSO partnerships. 

City-grid interfaces offer a structured pathway to create successful cooperation between cities and DSOs, which are critical partnerships within Europe to ensure an energy transition that is economically viable, socially just and environmentally responsible, the report concludes in summary. 

"They also align with the European Union’s priorities of enhancing competitiveness and security of the energy sector, making them an impactful tool which cities and DSOs can use to jointly establish strong leadership of the local energy transition."