The Clean energy for EU islands secretariat, in collaboration with the Conference of Peripheral Maritime Regions (CPMR), successfully hosted its first conference in Brussels. This event highlighted the critical needs of island grids and garnered significant attention from the European Parliament and the European Commission, especially in light of the upcoming legislative packages on Citizens and Electrification.
The conference underscored the importance of affordable and clean energy as the foundation of European energy policy, with islands positioned as frontrunners in the journey towards full decarbonisation. The CE4EUI Secretariat presented a comprehensive study on non-interconnected island grids, which included ten case studies, forty interviews, and participation from over 240 individuals across eleven workshops.
Key challenges identified for island grids included power interruptions, high curtailment of existing renewable energy (RE), limited resources for new solutions, lack of smart systems, and complex permitting and connection policies. Among the nineteen recommendations from the study, three key recommendations were emphasised:
- Hybrid Power Plants: To maximise the use of local renewable energy and optimise existing grid capacity, with best practices highlighted from Greece and the island of Graciosa (Portugal).
- Centralised Storage Systems: To provide grid services and operational flexibility, support distributed generation, and reduce curtailment, with examples from several French islands and Porto Santo.
- Specific Grid Codes and Regulations: To reduce uncertainties and enhance investor attractiveness, including defining requirements for RE plants, curtailment frameworks, and demand-side management.
During the conference, the Clean energy for EU islands secretariat presented its comprehensive study on non-interconnected island grids. The study was based on an extensive analysis that included ten case studies, 40 interviews, and participation from over 240 individuals across eleven workshops. The study identified several key challenges for island grids, such as power interruptions and outages, high curtailment of existing renewable energy (RE), limited resources for implementing new solutions, lack of smart systems and controllability of distributed RE, and complex and fragmented permitting and connection policies.
Among the 19 recommendations from the study, three key recommendations were highlighted. First, the use of hybrid power plants should be fostered to maximise the use of local renewable energy and optimise the existing grid capacity, with best practices observed in Greece and on the island of Graciosa in Portugal. Second, the use of centralised storage systems should be enhanced to provide grid services and operational flexibility, support distributed generation, and reduce curtailment, with notable examples from several French islands and Porto Santo. Third, developing specific grid codes and regulations for islands to reduce uncertainties and enhance attractiveness for investors, including defining requirements for RE plants, a framework for curtailment and remuneration, and a framework for demand-side management and remuneration.
The first panel discussed the enabling legislative framework for the successful deployment of renewable energy systems and grid interventions on islands. The speakers emphasised the need to align the perspectives of grid operators, national governments, island communities, and authorities involved in spatial planning, as these are often not aligned. Concerning storage facilities, it was remarked that DSOs currently have limited interest and advantages in developing storage facilities for primary regulation due to significant uncertainties regarding the related revenues. In addition, reduced areas available for the installation of storage systems and significantly higher specific costs than on the mainland due to the reduced size of the plants are significant obstacles to their deployment. The panellists also highlighted the importance of flexibility, remarking that this should be provided on a market basis and that there is a need for a European framework on demand-response management and remuneration. The topic of island grid codes was also discussed, with most islands following the same grid codes as on the mainland. The development of dedicated requirements for renewables, such as those in Madeira's grid code, brought significant benefits and ensured that new installations did not jeopardise the island's electricity system.
The second panel discussion focused on the electricity system regulatory frameworks and the required financing and funding mechanisms to enable the implementation of interventions for grid modernisation. The panellists mentioned the importance of enhancing interconnection capacity where feasible and that a key challenge in the Baltic Sea area is transforming islands into energy hubs to favour the development of offshore wind farms. To enable this, shared responsibilities and strategies among the governments in the Baltic Sea area are fundamental. Then, it was discussed how several islands face significant limitations in renewable penetration due to the lack of grid flexibility, curtailment that reduces the profitability of power plants, and the interests of the independent power producers on the islands.
On the topic of funding, it was highlighted how islands are often key beneficiaries of EU cohesion funds and that the project identification is typically done at the regional or national level: the regional authorities currently tend to prefer investments in energy production and transmission grids over those on distribution grids. Also, it was highlighted how DSOs can be the main beneficiaries of funds directed towards grids, but there is a need for regional will to push in this direction.
Regarding financing, it was highlighted how the European Investment Bank (EIB) has been financing many interconnections, as networks are more likely to be financed since they are clearly regulated. If the regulatory authorities approve the investment, financing can usually be approved. Some best practices from the French regulator were then discussed, such as an in-house supply and demand equalisation algorithm to evaluate storage benefits and a subsidy scheme for energy efficiency and savings.
The panellists were then asked to identify the key aspects to be included in a pact for island grids. They remarked on the enhancement of funding and flexible financial mechanisms, the strengthening of multilevel governance, the encouragement of member states and regions to dedicate cohesion funds to island distribution grids, and the development of clear regulations to favour the interest of private investors and facilitate access to finance.
The conference featured notable speakers, including Tonino Picula, Member of the European Parliament, and Alejandro Ulzurrun De Asanza Y Munoz, Acting Director of Just Transition, Consumers, Efficiency, and Innovation at DG ENER, and Filip Reinhag, President of the CPMR and Regional Councillor at Region Gotland. The event benefitted from speakers from DG Ener, DG Regio, the European Parliament, CPMR, the Government of the Balearic Islands, the Instituto Tecnológico de Canarias, Solar Power Europe, EEM-Empresa de Electricidade de Madeira, Energynautics, the European Investment Bank, Eurelectric, and the Commission de régulation de l’énergie.