The challenges posed by the Green Deal introduced by the new Commission are currently shaping Europe’s energy future. Indeed, climate change demands massive investment in decentralising and making the electricity sector more flexible, in order to significantly integrate renewable energy production into the energy mix, and to make electricity the backbone of a low-carbon energy system.

These developments are forcing an in-depth reorganisation of the electricity system and raise the question of the changing role of network operators.

An analysis of the strategies of electricity distribution operators in various European countries highlights the heterogeneity in this area, largely explained by contrasting national situations and the search for new business models. However, all distribution players are seeking to move from an infrastructure management model to a role as interface between the various stakeholders in an electricity system that is central to the energy transition. However, their room for manoeuvre will depend very heavily on the role they are given by the regulatory authorities.

This note, drawn up in collaboration with the Florence School of Regulation on the basis of discussions with a number of network operators, sheds light on the various challenges they face in this new context.