Brussels, 04 September 2024
WK 10936/2024 INIT
LIMITE
ENER
AGRI
CLIMA
IND
CONSOM
ENV
TRANS
COMPET
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INFORMATION
From:
General Secretariat of the Council
To:
Working Party on Energy
Subject:
Communication from the Commission: Guidance on Article 20a on sector
integration of renewable electricity of Directive (EU) 2018/2001 on the promotion
of energy from renewable sources, as amended by Directive (EU) 2023/2413
Delegations will find in the annex a communication from the Commission on guidance on Article 20a on
sector integration of renewable electricity of Directive (EU) 2018/2001 on the promotion of energy from
renewable sources, as amended by Directive (EU) 2023/2413.
WK 10936/2024 INIT
LIMITE
EN
EUROPEAN
COMMISSION
Brussels, 2.9.2024
C(2024) 5041 final
COMMUNICATION FROM THE COMMISSION
Guidance on Article 20a on sector integration of renewable electricity of Directive (EU)
2018/2001 on the promotion of energy from renewable sources, as amended by Directive
(EU) 2023/2413
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TABLE OF CONTENTS
1. Introduction ................................................................................................................. 4
2. Legal and policy context ............................................................................................. 5
2.1. Legal context ..................................................................................................... 5
2.2. Policy context .................................................................................................... 6
3. Implementation of obligations under Article 20a ....................................................... 8
3.1. Access to information on the share of renewable electricity and greenhouse
gas emissions content of supplied electricity and on demand response
potential ............................................................................................................. 8
3.1.1. General overview of obligations in Article 20a(1) .............................. 8
3.1.2. Data sharing ......................................................................................... 9
3.1.3. Access to information for distribution system operators................... 11
3.1.4. Incentives for upgrades of smart grids .............................................. 13
3.1.5. Data on demand response potential and electricity generated by
self-consumers and renewable energy communities ........................ 14
3.2. Interoperability and harmonised approach for access to data ......................... 16
3.2.1. General overview of obligations in Article 20a(2) ............................ 16
3.2.2. Interoperability and harmonisation ................................................... 17
3.3. Requirement to enable access to basic battery information ............................ 18
3.3.1. General overview of obligations in Article 20a(3) ............................ 18
3.3.2. Battery data format ............................................................................ 23
3.3.3. Data access to owners, users and third parties “acting, with explicit
consent, on the owners’ and users’ behalf” ....................................... 24
3.3.4. Ensuring access to battery data in “real time”, under “non-
discriminatory terms” and “at no cost” ............................................. 26
3.3.5. Exchange interface ............................................................................ 27
3.4. Obligation to ensure smart and where appropriate bi-directional recharging
functionalities .................................................................................................. 29
3.4.1. General overview of obligations in 20a(4) ........................................ 29
3.4.2. Smart recharging ............................................................................... 30
3.4.3. Interface with smart meters, where appropriate ................................ 31
3.4.4. Bi-directional recharging, where appropriate .................................... 32
3.4.5. E-roaming .......................................................................................... 35
3.5. Non-discriminatory access for small and mobile storage assets to the
electricity markets ........................................................................................... 35
3.5.1. General overview of obligations in 20a(5) ........................................ 35
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3.5.2. Detailed obligation ............................................................................ 36
Annex I - Obligations under Article 20a ................................................................... 39
Annex II – Relevant definitions ................................................................................ 41
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1. INTRODUCTION
This document aims to provide guidance to Member States on the transposition of the
provisions of Article 20a of Directive (EU) 2018/2001(1) on the promotion of the use of energy
from renewable sources, as amended by Directive (EU) 2023/2413 (hereafter referred to as
“revised RED or the “revised Directive”). Directive (EU) 2023/2413, which introduces Article
20a, was adopted by the European Parliament and the Council in October 2023 and entered into
force on 20 November 2023.
The overall aim of the new Article 20a (and of the definitions contained in points (14c) to (14p)
of Article 2) of the revised Directive is to facilitate energy system integration based on
renewable electricity, and to ensure that the electricity system allows for a higher share of
renewable electricity in a cost-optimal manner. Article 20a thus aims to achieve this by setting
obligations regarding the access to data and market access. Specifically, it requires that:
‒ Transmission System Operators (TSOs) and, if possible, Distribution System Operators
(DSOs) will have to make available information on the share of renewable energy and
the greenhouse gas emissions content of the supplied electricity in their territory, in
order to increase transparency and give more information to electricity market players,
aggregators, consumers and end-users, including to electric vehicle users;
‒ Battery and electric vehicle (EV) manufacturers will have to enable access to
information on battery management system to battery owners and users, as well as to
third parties acting on their behalf;
‒ Member States will have to ensure smart recharging and, where appropriate, the
interface with smart metering systems, if deployed by Member States, and bidirectional
recharging functionalities for non-publicly accessible normal power recharging points;
‒ Member States will have to ensure non-discriminatory access for small and mobile
storage assets to the balancing and flexibility services markets.
Member States will have to transpose Article 20a within 18 months after the entry into force of
the amending Directive, namely by 21 May 2025. In that regard, the aim of this document is to
provide guidance to Member States and their authorities on the application of these new
provisions. It will help ensure timely transposition and implementation of Article 20a while
ensuring consistency with the other EU legislation, thus reducing the administrative burden to
the minimum.
(1) Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the
promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82)
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In preparing this Communication, the Commission took into account recommendations derived
from a dedicated technical assistance study on promoting energy system integration through
the increased role of renewable electricity, decentralised assets and hydrogen(2).
This document is intended uniquely as a guidance. Only the text of EU legislation itself has
legal force. The binding interpretation of EU legislation is the exclusive competence of the
Court of Justice of the European Union. The views expressed in this guidance are without
prejudice to the position that the Commission might take before the Court of Justice.
2. LEGAL AND POLICY CONTEXT
2.1.
Legal context
The Commission introduced the new Article 20a as a follow up to the July 2020 Strategy for
Energy System Integration (3) to promote a more energy efficient and circular system, adapted
to higher shares of renewables and increased electrification.
The new Article 20a is complementary to and/or directly interlinked with other pieces of Union
legislation, in particular, the Alternative Fuels Infrastructure Regulation (EU) 2023/1804
(AFIR)(4), Batteries Regulation (EU) 2023/1542(5), Type Approval Regulation (EU) 2018/858
(as amended)(6), Directive (EU) 2019/944 on common rules for the internal market for
electricity (Electricity Directive)(7) and Regulation (EU) 2019/943 on the internal market for
electricity (Electricity Regulation)(8), including the recently adopted amendments on
flexibility(9). In addition, Article 20a has interlinks with the revised Energy Performance of
Buildings Directive (EPBD)(10), which contains specific requirements on recharging points in
(2) Specific contract ENER/C1/2022-530 under Framework contract ENER/C1/2022-530
(3) COM(2020) 299 Final, communication on Powering a climate-neutral economy: An EU Strategy for Energy
System Integration
(4) Regulation (EU) 2023/1804 of the European Parliament and of the Council of 13 September 2023 on the
deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU
(5) Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning
batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing
Directive 2006/66/EC
(6) Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval
and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical
units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC) No 595/2009 and
repealing Directive 2007/46/EC
(7) Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for
the internal market for electricity and amending Directive 2012/27/EU (recast)
(8) Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal
market for electricity (recast)
(9) Regulation (EU) 2024/1747 of the European Parliament and of the Council of 13 June 2024, amending
Regulations (EU) 2019/942 and (EU) 2019/943 as regards improving the Union’s electricity market design
(10) Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy
performance of buildings (recast)
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link to page 8
buildings. Article 20a also has links with the Regulation on harmonised rules on fair access to
and use of data (Data Act)(11), which contains basic principles for accessing and using data
across the European economy (see
Table 1 below).
Table 1: Overview of Article 20a provisions and interlinks with the EU legislation
Article 20a
Electricity
Electricity
AFIR
EPBD
Battery
Data Act
Directive
Regulation
Regulation
Paragraph 1
Art. 23
Art. 6
Art. 33
Paragraph 2
Art. 23&24, Art. 57
31, 40, 59
Paragraph 3
Art. 14
Art. 5,7, 9 &
40(2)
Paragraph 4
Art. 15(3) & (4), Art. 14, 15
Art. 20, Art. 5(7) and 16
& (8), Art. 22
and Annex II(2)
Paragraph 5
Art. 3, 11, Art. 6, 18,
13, 15 - 17, 20, 22
31, 32, 33
and 40
2.2.
Policy context
The new EU target for renewables for 2030 is set at 42.5%, with aspiration to achieve 45% by
2030. Although renewable energy is set to expand across various sectors, its highest shares are
expected to be reached in the power sector. The share of renewable energy in the electricity
sector is projected to increase from 37.5% in 2020 to around 69% in 2030(12). At the same time,
electricity demand is expected to increase significantly, reaching 1/3 of the final energy
consumption in 2030 from 22.1% in 2022.
This increasing renewables-based electrification coupled with system integration provides an
opportunity for a cost-effective pathway to decarbonise end-use sectors such as transport,
heating and cooling and industry. This is already happening: 16 GW of new wind capacity and
41 GW of new solar capacity were installed in the EU in 2022, an increase of 45% and 47%
respectively compared to 2021. Sales of heat pumps reached 3 million in 2022 (an increase by
40% compared to 2021), and sales of EVs reached 1.2 million in 2022 (an increase by 14%
compared to 2021).
Energy system integration must progress more rapidly. To this end, the revised RED provides
an enabling framework to promote electrification through renewables deployment across
different demand sectors and integrating distributed energy resources such as electric vehicles
(11) Regulation (EU) 2023/2854
(12) COM(2022)230 final
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(EVs), photovoltaic systems (PVs) and heat pumps. These measures will also facilitate
electrification from renewables thanks to streamlined permit granting for renewable energy
projects and removing barriers to power purchase agreements.
However, there is an urgent need to tackle the remaining barriers that still prevent a massive
roll-out of renewable electricity. These include the need for expanding grid capacities at
distribution and transmission levels and developing a more flexible and smarter grid
infrastructure that can integrate an increased amount of variable renewable electricity, and
distributed energy resources such as electric vehicles (EVs), PVs and heat pumps. The EU
Action Plan on Grids (13) proposes concrete measures to accelerate investments in deployment
and digitalisation of the grids.
In fact, flexibility in the EU electricity system needs to almost double by 2030 compared to
2022(14). Demand response is an important source of flexibility and allows energy resources and
consumers to change or adjust their consumption or production in response to price signals.
Having information on the distributed energy generation and flexibility resources installed in
their grids, such as EVs, batteries, heat pumps or solar panels, would allow distribution system
operators to better plan and operate their networks. DSOs are also key actors to make the grid
more flexible, smart and able to serve connected customers and avoid risk of congestion. The
more granular and dynamic data DSOs will have on decentralised generation installations and
from connected consumers, the better and more flexibly they will be able to plan and manage
the grid.
In the context of energy system integration, EVs will play a key role in decarbonising Europe’s
economy and transport sector, in particular, and allow dependence on imported fossil fuels to
be reduced, as well as in contributing to the uptake of renewable electricity. The sales of new
EVs are expected to rise to around 40 million in 2030 and 152 million in 2040(15,16). Studies
show that by 2030, EV batteries could fully meet the need for short-term electricity storage
globally. This would bring substantial benefits in terms of grid efficiency and reduced energy
bills for consumers, as EVs would be able to provide balancing and flexibility services through
demand response and storage thanks to smart and bi-directional recharging in non-publicly
accessible parking spaces (i.e., residential and office buildings where vehicles are usually
parked for a longer duration).
The increasing number of EVs requires the optimisation and effective management of
recharging operations for their swift integration into the electricity grid. To achieve this, it is
crucial that Member States ensure full implementation of the revised RED and related pieces
(13) COM(2023) 757 final
(14) Joint report by the European Environment Agency (EEA) and the EU Agency for the Cooperation of Energy
Regulators (ACER) (sept 2023)
(15) Impact Assessment accompanying the Climate Target Plan 2040, SWD(2024) 63 final
(16) Eurelectric estimates that the share of EVs will increase to some 57-58% in 2040 and 79-80% in 2050, with
the share of electricity in energy consumption of passenger cars estimated to reach around 31-33 % by 2040
and 60-70% by 2050
(An EV Explainer - Eurelectric – Powering People)
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of legislation, and work together with the stakeholders and market actors to overcome the
remaining barriers to smart and bi-directional recharging.
Finally, active engagement of consumers in electricity markets directly or through aggregators
is key, through various forms of participation as self-consumers individually or via collective
self-consumption schemes, or as part of energy communities. To achieve this, consumers need
to have access to real-time data about the characteristics of energy supplied (such as renewable
energy share, GHG emissions content), similarly to the information they already have about
energy prices. This will enable them to make informed decisions to switch away from fossil
energy use towards renewable energy sources.
3. IMPLEMENTATION OF OBLIGATIONS UNDER ARTICLE 20A
3.1.
Access to information on the share of renewable electricity and greenhouse
gas emissions content of supplied electricity and on demand response
potential
3.1.1. General overview of obligations in Article 20a(1)
Consumers need to have useful information on renewable based electricity penetration in the
grid, in a transparent way and close to real time, to allow them to adjust their consumption
accordingly. The provisions of Article 20a(1) aim to ensure this by increasing the granularity
of information on the share of renewable electricity in the grid to the public, in an accessible
way. This will allow consumers to take conscious consumption decisions and adapt their
electricity use, for example EV users to charge or discharge their vehicle and provide flexibility
services based on signals about renewable energy. This will also create incentives for
investments into innovative business models, integrating renewable electricity and increasing
the efficiency of the grid.
Specifically, paragraph (1) of Article 20a obliges Member States to:
• require TSO and, if available, also DSO to make available data on the share of renewable
electricity and the greenhouse gas emissions content of the electricity supplied in each
bidding zone;
• make this data available, as accurately as possible in intervals equal to the market
settlement frequency but of no more than one hour, with forecasting where available;
• ensure that distribution system operators have access to the necessary data;
• provide incentives for upgrades for smart grids and
• ensure that distribution system operators make available, if technically
available, anonymised and aggregated data on the demand response potential
and the renewable electricity generated and injected to the grid by self-
consumers and renewable energy communities.
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The objective of Article 20a(1) is to ensure access to information on the available renewable
electricity in the grid in real-time, so for example consumers can adjust their electricity
consumption to hours with high renewable electricity share.
3.1.2. Data sharing
Based on the obligations of Article 20a(1), Member States must stipulate in their national
legislation that system operators make available data on the share of renewable electricity and
the greenhouse gas emissions content of the electricity supplied in each bidding zone, in
intervals equal to the market settlement frequency and not exceeding one hour with a possibility
to use forecasting.
Most TSOs, and in some Member States also DSOs, already provide close to real-time data on
electricity generation and consumption, including the contribution of renewable energy sources,
on their official websites, which serve as data platforms (either as Data Exchange Platforms or
Data hubs)(17) (see Box 1). Thus, using existing Data Exchange Platforms to publish the data
on the share of renewable electricity and GHG emissions content close to real time (equal to
market frequency interval) is an effective way to implement Article 20a(1). These platforms
could also be useful for statistical purposes. The requirement on data availability implies access
to those platforms in a simple manner. Member States’ authorities will need to assess what
additional data categories need to be added to existing Data Exchange Platforms to ensure the
provision of information under Article 20a(1).
Box 1- Data platforms in the context of the electricity market legislation
Data exchange platforms (DEPs) or Data hubs could be seen as a single gateway for access to
electricity market data at national level in line with electricity market legislation. Information
on wholesale and balancing electricity prices and the renewable electricity share are already
available in nearly real time(18). Electricity Directive provides basic requirements on data
exchange and data availability to consumers in real time. In addition, electricity market
technical regulations require data exchange between market participants.
Article 33 of Regulation (EU) 2023/2854 on harmonised rules on fair access to and use of data
(‘Data Act’) provides the general rules for ensuring the availability of information on data
sharing services or platforms via e.g., Application Programming Interfaces (API) (19) and where
possible enabling the interoperability of tools for harmonised data exchange.
There are different methods to share data from Data Exchange Platforms with DSOs and other
market actors, for instance via API, web services and file-based exchanges (e.g., XML, CSV,
(17)
Microsoft Word - EUSYSFLEX 5.1.3 Report - Data Platforms - FINAL.docx (eu-sysflex.com)
(18) Electricity Regulation (EU) 2019/943 and Commission Regulation (EU) 2017/2195 on electricity balancing,
Directive (EU) 2019/944 on the internal market for electricity
(19) An API is a set of rules or protocols that allow software applications communicate with each other to
exchange data, features and functionality. For example, Energy labelling product registry (EPREL) also uses
an API, which provides access to public data for products registered in EPREL.
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RDF, JSON). APIs allow efficient data retrieval and integration, and offer better flexibility
compared to the other methods.
Data platforms in most cases are operated by TSOs and DSOs. For example, EDSN in the
Netherlands is owned by seven DSOs and a TSO, with hereby DSOs actively involved in data
management. The data platforms in Estonia and the Netherlands are more electricity end-
customer oriented (consumers, prosumers), whereas the Belgian and the Italian data platforms
focus on suppliers and balancing responsible parties to facilitate their business processes. Some
of these data platforms publish combined ex-ante (forecasts) and ex-post (realised flows) data.
The data granularity of those data platforms may vary between one minute and one hour.
The obligation to make data on the RES share and GHG emissions content available close to
real time is in line with the rules under the Electricity Regulation. Article 8(4) of the Electricity
Regulation requires that the imbalance settlement period must be 15 minutes in all scheduling
areas by 1 January 2021, unless the regulatory authority has granted a derogation or an
exemption(20).
To ensure consistency of implementing the obligation of Article 20a(1) to publish information
on the
RES share and GHG emissions content, it would be necessary to take into account
imports and exports in order to reflect the consumption of electricity in a given bidding zone.
For DSOs it would mean accounting for electricity flows between distribution and transmission
networks. Specifically, as regards the data format:
‒ For the
RES share, expressing it as a
percentage of supplied electricity by accounting
for imported and exported electricity flows is coherent with most TSOs already
publishing RES data on their Data Exchange Platforms as percentages for every type of
renewable generation (for example, Belgium and Germany);
‒ For
GHG emissions content, expressing it in
grams of CO2 equivalent per kWh,
calculated based on the weighted average of electricity injected into the grid by
accounting for imported and exported electricity flows is recommended.
An optimal way to make this data available in near real time would be using APIs to allow
interested parties, especially consumers and end-users, to retrieve the information directly from
a single data access point and to receive this data directly to their devices (e.g., energy or
building management systems, mobile phones and EVs). For example, the data of ENTSO-E
Transparency Platform is publicly available and can be accessed via an API. At a Member State
level, Energieopwek data platform in the Netherlands (21) provides the information on renewable
energy generation within 10 minutes timeframe and it is made available via an API.
(20) Some Member States have obtained derogations and by 1 January 2025, the imbalance settlement period must
be implemented in all scheduling areas.
(21)
https://energieopwek.nl/en
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To ensure consistency in accounting the RES share and the GHG emissions content, for the
purposes of implementing of Article 20a(1), it is essential that Member States promote the use
of a harmonised approach and methodology by system operators. Member States should
encourage system operators to cooperate across Member States in the collaboration framework
of the European Network of Systems Operators for electricity (ENTSO-E) and the association
of European distribution system operators (EU DSO Entity) to ensure that cross-border flows
are accounted for consistently across bidding zones.
3.1.3. Access to information for distribution system operators
In relation to the obligation for Member States to ensure that
DSOs have the necessary
information on the RES share and the GHG emissions content, Article 31 of the Electricity
Directive already includes obligations on DSOs to provide system users with the information
they need for efficient access to, including the use of, the electricity system and as regards the
cooperation between TSOs and DSOs.
With the increasing number of active customers producing their own electricity, DSOs need to
become more proactive service providers to ensure the optimal operation of the grid and serve
customers cost-effectively. For this to happen, it is crucial that DSOs have the necessary
information on the available renewable electricity in their electricity system to become able to
use the services connected to distributed energy resources such as demand response and energy
storage, based on market signals.
In Member States where smart metering systems are deployed, DSOs are usually responsible
for the installation of smart meters, while they also participate in the data management process.
Member States are responsible for setting the rules for the management and exchange of data
(i.e., metering and consumption data as well as data required for customer switching, demand
response and other services), in accordance with Articles 23 and 24(22) of the Electricity
Directive. In this framework, Member States assign specific roles and responsibilities to DSOs
and other actors, on the basis of their data management model.
It is essential that Member States stipulate in their national framework how DSOs will be able
to obtain the data from market actors such as aggregators, electricity suppliers and self-
consumers, energy communities, metering companies, etc. on the renewable electricity. Where
such data constitute personal data, it is crucial that the access and processing of this data is
ensured in accordance with the general data protection rules(23). Given the large diversity of the
DSOs across the EU and the different levels of development of data collection models deployed
in the Member States, it is important that Member States put in place or adjust the existing
(22) According to Article 24, the Commission shall adopt, by means of implementing acts, interoperability
requirements and non-discriminatory and transparent procedures for access to metering and consumption data
as well as data required for customer switching, demand response and other services.
(23) Article 23 of the Electricity Directive contains principles on data management activities and provides that
Member States shallensure efficient and secure data access and exchange. In addition, it recalls that the
processing of personal data shall be carried out in accordance with Regulation (EU) 2016/679.
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mechanisms for ensuring effective cooperation arrangements amongst the DSOs and TSOs at
national level for facilitating data collection for the purposes of implementing Article 20a(1).
Those mechanisms should provide the way for DSOs to record the data close to real time on
the share of renewable electricity and the GHG emissions content of the electricity supplied in
the respective electricity distribution system by taking into account the exported and imported
electricity flows, and the way how this information is made available via a centralised
information channel at national level (as referred to above).
Data Exchange Platforms in the Member States are usually a single gateway for access to data
from data providers (such as data hubs, flexibility service providers, TSOs, DSOs) to data users
(such as TSOs, DSOs, Balancing Responsible Parties, consumers, suppliers, energy service
providers) and this makes them the primary channel of information.
To implement the obligations on access to information in an effective manner, Member States
can enable access to data in data platforms by using APIs or can ensure the data exchange via
available standards such as Inter-Control Centre Communications Protocol (ICCP, IEC 60870-
6/TASE.2), Communication networks and systems for power utility automation (IEC 61850-
7), RESTful(24) services using the DEP(s); however, those standards may not ensure the same
level of efficiency for enabling access to data as using the APIs.
In case the DSOs do not have the data available on the RES share and the GHG emissions
content of the electricity supplied in distribution grids, as an alternative Article 20a(1) provides
a possibility to use the existing data
reporting system under the ENTSO-E Transparency
Platform (25). This Platform provides centralised data on generation, transportation and
consumption of electricity at EU level with the granularity at a level of the bidding zone,
collected from data providers, including TSOs and other qualified third parties.
At the moment, reporting to ENTSO-E Transparency Platform is limited to installations with
generation capacities of 100 MW and above(26). Therefore, when opting to use this alternative
for enabling access to data for DSOs, Member States should ensure that DSOs can provide the
additional information on smaller generation capacities, to overcome this data limitation.
3.1.4. Incentives for upgrades of smart grids
As regards the obligation for Member States to provide
incentives for upgrades for smart
grids (see examples in Box 2), recital 51 of Directive (EU) 2023/2413 explains that the
deployment of innovative business models and digital solutions have the capacity to link
(24) RESTful APIs are commonly used in web and mobile applications to retrieve or modify resources and data
on remote systems; e.g., social media sites use REST APIs to integrate with third-party applications and allow
posting updates.
(25)
The ENTSO-E Transparency Platform
(26) In line with Article 16(1)a of Regulation (EU) 543/2013 on the submission and publication of data in
electricity markets
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consumption to the level of renewable energy in the electricity grid and thus provide incentives
for the right network investments.
The obligation to incentivise investments into smart grids complements the requirement in the
Electricity Directive on the development of distribution systems to be based on network
development plans to be conducted every two years by the DSOs, containing the smart grid
deployment needs in each DSO’s area.
The implementation of these obligations requires that Member States and national regulators
ensure that DSOs establish adequate network development plans based on transparent and
regular exchanges with the relevant stakeholders such as renewable energy producers and
suppliers, aggregators including electromobility service providers and local authorities etc.
Member States with a high need for distribution grid modernisation and local smart grid
deployment should consider available options to increase allocations under Cohesion policy
funds for this sector. DSOs and TSOs, with support from the respective Member States, are
encouraged to consider partnering for proposing candidate Projects of Common Interest on
smart electricity grids, in accordance with the TEN-E Regulation(27) process.
Box 2 - Actions on grids and on the digitalisation of the Energy System
The EU Action Plan for Grids (28) calls for enhancing distribution network development
planning, encouraging anticipatory investments in certain grid projects, adapting network tariff
structures to encourage network and system developments including on smart grids, ensuring
access to finance, streamlining grid permitting and facilitating supply chain investments. The
Action Plan supports the development of distribution network development plans and the
uptake of smart, innovative and network efficiency technologies. In the framework of the EU
Action Plan for Digitalising the Energy System (29), work is under way by the European Union
Agency for the Cooperation of Energy Regulators (ACER), CEER and the national regulatory
authorities (NRAs), in cooperation with ENTSO-E and EU DSO Entity, to define common
smart grid indicators. NRAs monitor smart and digital investments in the electricity grid in line
with the objectives of Article 20a.
The Smart Energy Expert Group (30) and its dedicated ‘Data for Energy’ (D4E) working group
as announced in Action Plan for Digitalising the Energy System will bring together the
Commission, Member States and the relevant public and private stakeholders to build the
European framework for sharing energy-related data. D4E will help strengthen the coordination
(27) Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for
trans-European energy infrastructure
(28)
eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52023DC0757
(29)
Digitalising the energy system - EU action plan (COM/2022/552)
(30) The Smart Grids Task Force will be succeeded by the ‘Smart Energy Expert Group’
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at EU level on data exchanges for the energy sector, defining the driving principles and ensuring
consistency across different data-sharing priorities and initiatives (31).
3.1.5. Data on demand response potential and electricity generated by self-
consumers and renewable energy communities
Demand response is pivotal for enabling distributed energy resources such as heat pumps, small
storage assets and EVs to participate in the flexibility services, which will be crucial for energy
system integration in general as stated in recital 55 of the revised RED. Recital 51 also explains
that, in order to allow demand response and provide further incentives for the absorption of
green electricity, data need to be based not only on dynamic prices but also on signals about the
actual penetration of green electricity in the system.
Article 20a(1) contains an obligation for DSOs to provide
anonymised and aggregated data,
if technically available, on demand response potential and renewable electricity generated and
injected into the grid by self-consumers and renewable energy communities. This obligation
builds on Article 23 of the Electricity Directive, which requires access to data of final
customers. The Implementing Regulation (EU) 2023/1162(32) also contains complementary
provisions for consumers to obtain access to their metering data and also give authorisation for
data on their energy consumption or generation to be used by third parties.
The
demand response potential in a distribution system depends to a large extent on the
availability of flexible load, i.e., electricity consumption assets that can adjust their demand,
either behind or in front of the meter. Such assets can be linked to industrial customers or
processes and to commercial or residential customers, and can include heat pumps, residential
or publicly accessible EV charging points, home and industrial batteries, etc.
The technical availability of collecting data on demand response potential largely depends on
the processes whereby the DSO is informed of the flexible load assets installed in its system.
More granular information on the existing and potential flexibility in an electricity system is
also necessary in line with the revised Electricity Regulation.
To this end, Member States should set forward in their national legislation specific conditions
to render the required data on demand response potential referred to in Article 20a(1)
“technically available”.
The key condition for DSOs to be able to collect data on demand response potential and
renewable electricity generation and injection to the grid is that they are fully informed of the
renewable energy generation and flexible load assets installed in their systems. The most
common means for DSOs to collect this information is a permitting or notification procedure
for a renewable energy installation (see Box 3). In cases where a permitting or notification
(31)
eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022SC0341
(32) Commission Implementing Regulation (EU) 2023/1162 of 6 June 2023 on interoperability requirements and
non-discriminatory and transparent procedures for access to metering and consumption data
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procedure does not appear necessary, an obligation to inform the DSO can also be established
and enforced in cooperation with installers.
Another useful source of information for DSOs could be an identification or registration of all
potential flexibility service providers in each Member State, as recommended by ACER in their
framework guideline on a network code on demand-side flexibility(33). It would allow capturing
those service providers that are potentially qualified to participate in flexibility services in
demand response directly by shifting demand via the use of smart appliances or indirectly via
a contract with an aggregator.
The collection and processing of personal data for the requirements of Article 20a(1) should be
carried out in accordance with the Regulation (EU) 2016/679 on data protection. For this
purpose, Member States shall ensure that in their transposition of the requirements of Article
20(a)(1) this right is clearly established in national law (legal basis for the collection and
processing of personal data) and respects the EU data protection rules. Subsequently, Member
States could require that national regulators, in consultation with competent authorities,
including data protection authorities, adopt guidelines for DSOs on collecting the anonymised
and aggregated data on demand response potential and renewable electricity generated and
injected into the grid by self-consumers and renewable energy communities, and on making it
available via digital means to the relevant actors. This data are important for the purpose of
compiling official statistics at EU level, therefore access to this data is of essence to national
statistical authorities.
The data management operations required by Article 20a should also be taken into account by
national regulators regarding the DSOs’ capital and operational expenditure, when deciding on
a possible cost recovery through network tariffs, which will be required under the revised
Electricity Market Regulation(34).
Box 3 – Data collection on the renewable electricity generated and injected into the grid by
self-consumers and renewable energy communities
DSOs need to be informed about the installation of renewable generation equipment in their
systems, which is generally the case in the EU through a grid connection permitting or
notification procedure. As long as the renewable energy generation equipment is fitted with
a dedicated metering device, the system operator can in principle establish the amount of
electricity generated by that equipment. If accurate enough, this information will also
contribute to fulfil the obligation to provide data on the share of renewable electricity.
(33) Paragraphs 34 and 57,
FG_DemandResponse.pdf (europa.eu), published by ACER on 20 December 2022
(34) Improved data management by DSOs will also be necessary, among other things for them to properly
implement the energy sharing provisions of the revised Electricity Market Directive, according to which DSOs
must “monitor, collect, validate and communicate metering data related to the shared electricity with relevant
final customers and market participants at least every month.”
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To determine the amount of renewable electricity injected into the grid by self-consumers
and renewable energy communities it is also necessary to establish the amount of self-
consumed renewable electricity. When both generation and self-consumption take place
behind the same meter, the electricity injected into the grid is the net result of the subtraction
between generation and self-consumption. When generation and self-consumption take place
behind different meters, e.g., because electricity is generated in one location and self-
consumed in a different one (e.g., in energy sharing schemes), electricity consumed in the
consumption point is considered as self-consumed, and needs to be subtracted from the
electricity generated at the generation point.
3.2.
Interoperability and harmonised approach for access to data
3.2.1. General overview of obligations in Article 20a(2)
Paragraph (2) of Article 20a requires that Member States ensure that the data (referred to in
paragraph one) are made available digitally in a manner that ensures interoperability based on
harmonised data formats and standardised data sets. This effective and digital data exchange is
a key enabler for the integration of renewable energy, the uptake of demand response and the
overall flexibility of the electricity network.
The objective of this provision is that the relevant electricity market participants, including
aggregators and consumers, can access and use the data in a simple way, via electronic
communication devices such as smart meters, electric vehicle recharging points, heating and
cooling systems and building energy management systems. This will benefit consumers,
including EV users, aggregators and energy management companies, as they will be able to
read and use in efficient and simple way the data that can be updated close to real time, using
standardised data formats.
3.2.2. Interoperability and harmonisation
To limit administrative burden and facilitate the implementation of
interoperability
requirements for the purpose of Article 20a(2), Member States are advised to use already
commonly agreed and compatible data exchange formats and standards based on the Common
Information Model (CIM) developed by International Electrotechnical Commission (IEC)(35),
which allows standardised data exchanges between energy system operators. The IEC 62325
series standards, (namely IEC 62325-351, CIM European market model exchange profile(36)
and the set of IEC 62325-451 standards targeting core business processes of internal electricity
market, such as scheduling, settlement, capacity allocation and nomination, acknowledgement,
(35)
Common Information Model (CIM) (entsoe.eu)
(36)
CIM Guidelines for the IEC 62325-351 European Style Market Profile Approved as a Technical Specification
(entsoe.eu)
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etc.) would be the most appropriate, as they provide necessary guidelines to exchange
information among system operators(37).
In addition, the Member States, to deliver on the requirement which applies to them to ensure
interoperability of data, can require and put in place measures to facilitate collaboration
amongst the system operators to make the different data platforms and data hubs interoperable
at least at national level in terms of applying the same standards for data exchange and format,
and if possible using a standardised API methodology. Member States are encouraged to
collaborate closely with the established European style market profile CIM (Common
Information Model) governance structure (for example, the ENTSO-E CIM working group) for
conformity testing, in order to improve compliance with the respective CIM standards.
In addition, Member States are encouraged to make use of the established fora in the field
including the working group on D4E under the Smart Energy Expert Group, in order to facilitate
the development and the use of harmonised data formats and standardised data sets to ensure
interoperability for the purposes of implementing Article 20a(2).
In relation to cybersecurity safeguards, Member States are encouraged to use the existing rules
and standards put in place and promote best practices, notably on cyber-hygiene, at every level
of the concerned organisations (see Box 4 below).
Box 4 - Data availability and interoperability
Specific requirements for cooperation and data exchange between the system operators are
already included in the Electricity Regulation (Article 57) and the Electricity Directive (Article
40), and related network codes. National regulatory authorities have an overseeing and
monitoring role in the implementation of the electricity market legislation. The electricity
market legislation also promotes cooperation on cross-border issues with the regulatory
authorities of the Member States concerned and with ACER (Article 59 of the Electricity
Directive).
Since 2009, the ENTSO-E fulfils a coordinated action at EU level to promote use of the
Common Information Model (CIM), which enables standardised data exchanges. The
International Electrotechnical Commission (IEC) Technical Committee in collaboration with
ENTSO-E, is currently developing the IEC CIM 62325 standards for the exchange of data
required by decentralised energy markets. The IEC 62325 series of standards could be
considered as a default option for pan-European data exchange and have been also discussed in
the context of the proposal of the network code on demand response and relevant projects.
The Smart Grids Task Force (38) proposed recommendations in this area, and the Smart Energy
Expert Group and Working Group ‘Data for Energy (D4E)’ will advise the Commission on
developing an interoperable framework and a governance structure for seamless data exchange.
(37)
Common Information Model (CIM) for Energy Markets (entsoe.eu)
(38) The Smart Grids Task Force will be succeeded by the ‘Smart Energy Expert Group’ pursuant to the decision
of the Commission of 18/9/2023
; 75247a4c-ac08-4884-b743-956b3e3cde8f_en (europa.eu)
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The Implementing Regulation (EU) 2023/1162 lays down interoperability requirements and
rules for non-discriminatory and transparent procedures for access to electricity metering and
consumption data by final customers and eligible parties in accordance with the Electricity
Directive. The Implementing Regulation establishes a reference model for metering and
consumption data that sets out rules and procedures that Member States shall apply to enable
interoperability.
The key principles for ensuring cybersecurity for data communication are regulated by
Directive (EU) 2022/2555 on measures for a high common level of cybersecurity across the
Union (NIS 2 Directive)(39). More relevant for the electricity market, the network code on
sector-specific rules for cybersecurity aspects of cross-border electricity flows sets the
necessary rules(40). The IEC 62351 series of standards also defines the cybersecurity
requirements for implementing security technologies in the operational environment, including
network and system management objects.
3.3.
Requirement to enable access to basic battery information
3.3.1. General overview of obligations in Article 20a(3)
Article 20a(3) seeks to allow owners or users of batteries, or the entities acting on their
behalf (41), to have real-time access to basic battery information. It puts an obligation on Member
States to ensure that manufacturers of domestic and industrial batteries, as well as vehicle
manufacturers, enable real-time access to basic Battery Management System (BMS)
information.
BMS information specifically covers four parameters: a) battery capacity, b) state of health
(SoH), c) state of charge (SoC) and d) power set point. The three last parameters are defined in
Article 2, points 14j, 14k and 14l of the revised RED. In relation to EV batteries (2nd
subparagraph of Article 20a(3)), BMS information must also cover, where appropriate, the
location of electric vehicles.
Enabling free and real-time access to BMS information is essential for renewables’ integration,
for promoting efficient charging services and practices, for saving cost, and ultimately for
improving customer experience. It will also contribute to the development of flexibility and
balancing services from the aggregation of distributed storage assets-. Fostering the
development of interoperable BMSs with improved diagnostic and predictive capabilities will
open up new business opportunities and facilitate energy system integration.
(39) Article 29 on on Cybersecurity information-sharing arrangements
, NIS 2 Directive (nis-2-directive.com)
(40) Commission Delegated Regulation (EU) 2024/1366 of 11 March 2024 supplementing Regulation (EU)
2019/943 of the European Parliament and of the Council by establishing a network code on sector-specific
rules for cybersecurity aspects of cross-border electricity flows
(41) Such as building energy system managers, mobility service providers and other electricity market participants
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Stationary storage (using domestic and industrial batteries) enables to store energy for later
use, helping to balance supply and demand, increase grid stability, and integrate renewable
energy into the grid more effectively.
Regarding EVs, smart and bi-directional recharging mainly rely on open access to BMS data.
Making data directly available to the relevant third parties acting on the owners’ and users’
behalf, such as electro-mobility service providers or aggregators, is needed to increase the
uptake of these charging functionalities or to better plan charging operations. This is particularly
relevant given that today, this information is not made widely available in a comprehensive and
harmonised manner, which is burdensome.
➢ Scope of the obligation
The obligation in the first subparagraph of Article 20a(3) applies for all new domestic and
industrial batteries placed on the internal market as from 21 May 2025.
The obligation in the second subparagraph of Article 20a(3) applies for all new EV batteries
placed in the internal market as of 21 May 2025, unless there are technical limitations
preventing it. In case there are technical limitations, the obligation in subparagraph 2 of Article
20a(3) applies for all new types of EVs approved under Regulation (EU) 2018/858 as of 21
May 2025. The obligation in subparagraph 2 of Article 20a(3) covers batteries used in both
battery electric vehicles (BEVs) and Plug-in hybrid electric vehicles (PHEVs), of category L
(if it does weigh more than 25 kg), or of categories M, N or O, according to the definition (14h)
of Article 2 of the Directive.
Even though the obligations of 20a(3) apply for the manufacturers of domestic, industrial
batteries and of EVs, they introduce in fact additional requirements on the products themselves,
similarly to the Batteries Regulation. Therefore, these products (stationary batteries and EVs)
need to comply with the requirements introduced by the revised RED when placed on the EU
market, regardless of where they are produced, thereby including those being imported.
Specifically, for subparagraph 2 of 20a(3), the obligation affects the EVs, which need to be in
compliance with the requirements of the revised RED in order to be placed in the EU market.
Therefore, this obligation also affects the entity that introduces the product on the EU market,
i.e. the manufacturer, the distributor or the importer. Consequently, Member States must ensure
in their national legislation that all products placed in the market are in line with the
requirements set by Article 20a(3), ensuring consistency in the Internal Market.
➢ General requirement
The entry point for accessing the data mentioned in the obligation is the BMS. Existing BMSs
often rely on proprietary software to define battery parameters, which limits interoperability.
The transposition of Article 20a(3) will ensure access to the parameters mentioned in this
paragraph through obligations on manufacturers of domestic and industrial batteries and on EV
manufacturers.
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link to page 22
Access to BMS data involves:
- A harmonised format for data points to avoid fragmentation. At this stage, some
standards already exist or are being developed, but this does not cover all parameters
mentioned in the revised RED (see Table 2).
- Using a same interface for the data exchange: some legislative texts are already
asking for data exchange regarding certain parameters (see
Table 2). On the basis of the
revised RED, battery and electric vehicle manufacturers must ensure that the
communication of the data happens in real time (see para 3.3.4).
The Commission will support Member States in implementing the Directive in line with this
guidance and further specify the parameters and data that are not standardised yet, as necessary,
via a dialogue, based on existing fora (such as the Working Group on Motor Vehicles, the Smart
Energy Expert Group and the Sustainable Transport Forum (42)), which will involve the
Commission, Member States’ representatives responsible for energy and transport, the industry
and relevant stakeholders. This dialogue may provide recommendations in complementarity to
the legislation and the guidance, on the implementation of this provision.
Table 2: Legislative texts or initiatives linked to the parameters mentioned in Article 20a(3)
Stationary batteries
EV
Parameter
Static/
Standard for
Requirement for
Standard for
Requirement for sharing
dynamic
calculation
sharing
calculation
Battery
Static
Standardised
Batteries Regulation CEN/CENELEC
Batteries
Regulation
capacity
(“rated
(ongoing)(45)
(“rated
capacity”
capacity (43)”
Timeline: May 2025
defined in Annex IV -
defined in Annex IV
Timeline: 18 Aug 2024 –
- Timeline: 18 Aug
see box 5)
2024 (44))
Data Act (see box 5)
(42) https://transport.ec.europa.eu/transport-themes/clean-transport/sustainable-transport-forum-stf_en
(43)‘Rated capacity’ (annex IV) means the total number of ampere-hours (Ah) that can be withdrawn from a fully
charged battery under reference conditions)
(44) From 18 August 2024, rechargeable industrial batteries with a capacity greater than 2 kWh, LMT batteries
and electric vehicle batteries shall be accompanied by a document containing values for the electrochemical
performance and durability parameters set out in Part A of Annex IV.
(45) prEN 18060 Road vehicles - Rechargeable batteries with internal energy storage - Performance of alkali-Ion
(Li-Ion, Na-Ion), Pb, NiMH and combined chemistries EV modules and batteries
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Stationary batteries
EV
Parameter
Static/
Standard for
Requirement for
Standard for
Requirement for sharing
dynamic
calculation
sharing
calculation
State
of Dynamic,
CEN/
Batteries Regulation CEN/CENELEC
Batteries Regulation -
health
decreasing
CENELEC
(parameters
for (ongoing) (46)
Timeline: 18 August
(SoH)
over
(ongoing):
determining SoH, Timeline: May 2025
2024 (47) (periodic basis
lifetime of Methodology
periodic basis -
– see box 5)
the battery
based on the 5 Timeline: 18 august
parameters
2024)
Euro 7 Regulation and
listed in Annex
UN Global Technical
VII of Battery
Regulation No. 22 (via
Regulation.
the OBD port and
optionally over the air)
(timeline: end 2026)
Data Act (see box 5)
State
of Dynamic
No standard
Batteries Regulation No standard
Batteries
Regulation
charge
(periodically
(periodically recorded,
(SoC)
Common
recorded, timeline: Common definitions timeline: 18 Feb 2027 –
definitions
in 18 Feb 2027 – see in revised RED and see box 5)
revised RED and box 5)
Batteries Regulation
Batteries
Data Act (see box 5)
Regulation
ISO 15118-2 already
enables its exchange
every 500 ms or 1s
between the vehicle and
the charging point. ISO
15118-20 also enables
its exchange.
Battery
Dynamic
No standard
No requirement
No standard
Data Act (see box 5)
power
set
point
Location
Dynamic
Not requested
Not requested
Standardised
Data Act (see box 5)
(where
appropriate)
(46) prEN 18061 Road vehicles - Electrically propelled vehicles - Steps, conditions and protocols for the safe repair
and re-use of modules and batteries originally designed for EV applications
(47) From 18 August 2024, up-to-date data for the parameters for determining the state of health and expected
lifetime of batteries as set out in Annex VII shall be contained in the battery management system of stationary
battery energy storage systems, LMT batteries and electric vehicle batteries.
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Box 5 - Relevant elements of the current legislation
The Data Act (48) aims to ensure that users can access and use the data generated by their
connected devices such as EVs. The Data Act provides for a general obligation to design and
manufacture products in such a manner that data are directly accessible (49) to the user, where
this is relevant and technically feasible (Article 3(1)).This obligation covers “product data”, i.e.
data generated by the use of the vehicle that the manufacturer designed to be retrievable (via an
electronic communications service, a physical connection or on-device access). Where data
cannot be directly accessed by the user, the data holder has to make “readily available data”
(defined under Article 5(1)) accessible to the user by some other means. Where relevant and
technically feasible, this data shall be made accessible continuously and in real time (Article
4(1)). Consequently, when system data points are defined in the legislation, the Data Act
recognises the right of users to access and share these data with third parties that they choose,
under fair, reasonable, non-discriminatory, and transparent terms and conditions. For example,
location is a data point clearly defined and the Data Act allows the driver to share the location
of his vehicle in line with the GDPR and the ePrivacy Directive. Likewise, the state of charge
is a data point generated by the EV manufacturer, which is already shared in real time with the
driver. However, for data holders, the Data Act provides for a compensation for making data
available to third parties (50). The Data Act applies in addition to the EU and national laws on
the protection of personal data and electronic communication.
The Batteries Regulation will require that some data of new stationary battery energy storage
systems and new electric vehicle batteries are shared, but it does not address the need for real
time access as the scope of data sharing provision in that Regulation focuses on helping the
evaluation for a potential second life for batteries.
Battery capacity, as from 18 August 2024, has to be included in a document accompanying the
battery. At a later stage, it will be shown on the battery label and as from 18 February 2027, it
will also have to be available in the public access part of the battery passport.
For the state of health (SoH), as from 18 August 2024, parameters for determining the state of
health shall be up to date and shared with the natural or legal person who has legally purchased
the battery or a third party acting on their behalf.
For state of charge (SoC), from 18 February 2027, the battery passport requires this information
in Annex XIII of the Batteries Regulation to be available to persons with a legitimate interest,
but only periodically recorded information is required.
(48) Article 3: “Obligation to make data accessed from connected products or generated during the provision of
related services accessible to the user. 1. Connected products shall be designed and manufactured, and related
services shall be designed and provided, in such a manner that product data and related service data, including
the relevant metadata necessary to interpret and use those data, are, by default, easily, securely, free of charge,
in a comprehensive, structured, commonly used and machine-readable format, and, where relevant and
technically feasible, directly accessible to the user.”
(49) For example, accessible on the device or via a remote server to which the data is communicated
(50) Article 9 of Regulation 2023/2854: “1. Any compensation agreed upon between a data holder and a data
recipient for making data available in business-to-business relations shall be non-discriminatory and
reasonable and may include a margin”.
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3.3.2. Battery data format
The requirement for access to battery data under Article 20a should be ensured by making use
of the existing standardisation when it is available. Member States should not create their own
standards at national level to avoid fragmentation.
When parameters are not yet standardised, Member States should recommend battery and
vehicle manufacturers to ensure that measurements and calculations are made using reliable,
accurate and reproducible methods which take into account the generally recognised state-of-
the-art methods, and the results of which are deemed to be of low uncertainty, including
methods set out in standards for which references have been published for those purposes in the
Official Journal of the European Union. They should also ask them to document these methods
in view of potential verification by competent authorities to allow for interoperability.
➢ State of health (SoH)
Member States should recommend manufacturers to use the outcomes of the
standardisation
currently being developed by CEN-CENELEC (see timeline in Table 2).
For EVs, the data point should be the
State of health (in %).
For stationary batteries, the data point should stem from the calculation using
the 5 parameters
listed in Annex VII of Batteries Regulation (51), using state-of-the-art methods.
➢ Battery capacity
The definition of battery capacity should be the
rated capacity, namely the capacity value of a
battery, under specific conditions, such as temperature and relative humidity, and declared by
the manufacturer.
➢ State of charge (SoC)
For the SoC, even if this data point is not yet standardised, it is already available (and for EVs,
normally displayed by the vehicle manufacturer on the EV dashboard, and possibly on the user
application). Therefore, it is recommended that car manufacturers share the current
SoC in %.
(51) ANNEX VII - PARAMETERS FOR DETERMINING THE STATE OF HEALTH AND EXPECTED
LIFETIME OF BATTERIES - Part A: Parameters for determining the state of health of electric vehicle
batteries, stationary battery energy storage systems and LMT batteries: […] For stationary battery energy
storage systems and LMT batteries: 1. the remaining capacity; 2. where possible, the remaining power
capability; 3. where possible, the remaining round trip efficiency; 4. the evolution of self-discharging rates; 5.
where possible, the ohmic resistance.
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➢ Battery power set point
The battery power set point is not standardised yet. It can cover for example the maximal power
that the battery can support at a given moment (in kW), as this maximal power changes
dynamically depending, for example, on battery temperature (52).
3.3.3. Data access to owners, users and third parties “acting, with explicit
consent, on the owners’ and users’ behalf”
➢ General requirement
Member States have to adopt measures to require that both vehicle manufacturers and
domestic/industrial batteries manufacturers make available in real time those data and at no cost
to battery and EV owners and users. Direct communication between the battery/vehicle and the
third party acting on the owners’ and users’ behalf must be enabled.
Member States need to introduce the right of users and owners to access data through the
transposition of the provision. In this legislation, they should also lay down the exact data point
that is meant to be shared when not standardised yet (see point 3.3.2 above).
Moreover, the right of owners and users to share these data with third parties is established
under the conditions of ‘explicit consent’. This ‘explicit consent’ should be understood as
authorisation of the owner/user for the data to be shared with the third party acting on their
behalf
, and not as a consent in the sense of the Regulation (EU) 2016/679 (GDPR).
These
conditions are included in the provision to ensure that battery and EVs owners and users are in
control of these data, and that they are protected while sharing them. Therefore, Member States
need to transpose the condition of accessing battery data, including the requirement of explicit
/authorisation of battery and EV owners and/or users in their legislation in order for the sharing
of the data to be lawful. In case the agreement for sharing the data is given by natural persons,
the GDPR also applies
regarding the access and subsequent processing of personal data of
batteries and EV users.
For electric vehicles, even though not written expressly in the provision, the mention of the
fact that third parties need to be acting on owners’ and users’ behalf, leads to the conclusion
that the explicit authorisation by EV owners/users is also needed for access to data mentioned
in the second subparagraph of 20a(3), mirroring the conditions of the first subparagraph.
Owners and users of EVs can either be natural or legal persons (i.e. enterprises, leasing
companies). In cases where the owner and the user are different (for example in the case of
leasing companies or of shared vehicles within a household), both should give their
authorisation to make the data available. However, for the sake of streamlining and accelerating
procedures, the owner may be requested to authorise the data access only once. It is also
(52) As part of the data to be communicated between the charging point and the vehicle under ISO 15118, “power
set point” is a set of data types (dynamic information) prescribing the electric power settings at which the
battery should optimally operate during a recharging or discharging operation.
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recommended that he does not restrict access as the user is the most concerned by this data
sharing.
When transposing the provision, Member States should provide details on how the authorisation
of the owner or user is given and the characteristics of this authorisation. It is recommended
that the authorisation given by the owner/user is specific, informed and explicitly brought to
attention of the owner/user. It must be done through a distinct authorisation for this specific
purpose, in an intelligible and easily accessible form, using clear and plain language (for
example by a written statement, including by electronic means). Member States are encouraged
to provide specific authorisation forms. This could include ticking a box when visiting a
smartphone application or internet website, choosing technical settings for information society
services or another statement. Silence, pre-ticked boxes or inactivity should not constitute
consent/authorisation.
The authorisation for the battery data should be revokable at any time in order for users who
will be data subjects in the sense of data protection rules to remain always in control of the data
flow.
➢ Case of location
As regards EV batteries, in addition to the four parameters indicated above, Article 20a(3)
contains an obligation to share, where appropriate
, the location of electric vehicles.
There are several reasons why sharing the location would contribute to energy system
integration. By knowing the location of EVs, energy providers can better plan the distribution
of charging loads across different locations to help balance the overall demand on the grid and
minimise the need for expensive peak capacity. Sharing location of the vehicles may be also
relevant for the aggregator’s planning and anticipation of charging sessions. It informs the
aggregator where the vehicles usually park, at what times and for how long. Moreover,
coordination of EV charging over periods with high renewable energy generation allows for
more sustainable charging practices. The data exchange that would take place prior to the
charging event could also include exchanging information about availability of charging
stations to efficiently route users to free charging stations, especially in peak events such as
holidays.
Location sharing also enables vehicle-to-grid integration. Knowing the location of EVs
equipped with bi-directional functionalities could incentivise using EVs as a storage asset
where it is needed and feed energy back into the grid during peak demand. Consequently,
energy providers can offer location-based incentives to encourage EV users to charge/discharge
their vehicles at specific locations or times, helping to optimise energy consumption across the
grid and reduce congestion.
Considering the need for ensuring data protection, Member States shall make sure that the
location is always shared after the authorisation of the owner/user of the EV, as mentioned
above, and in accordance with the data protection rules.
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➢ Enforcement
Sanctions (including fines) should be adopted by Member States to enforce the new
requirements laid down in the revised RED, but this should not result in the refusal of a type
approval, or in the prohibition of the placing of the type approved vehicle on the market (53).
Member States could carry out an audit to check that data are made available in real time, i.e.
that manufacturers of domestic and industrial batteries and of electric vehicles are complying
with the requirements of 20a(3).
3.3.4. Ensuring access to battery data in “real time”, under “non-discriminatory
terms” and “at no cost”
As regards
real time, the Electricity Regulation establishes that the settlement period of
ancillary and flexibility markets is equal to 15 minutes. However, according to stakeholders
and experts, in order to reflect significant changes of the parameters referred to in the revised
RED and the usefulness of the data, the frequency can be in the range of a second for some
parameters. Therefore, the recommended frequency of availability is
below one minute.
For EVs, it is important to distinguish between two use cases, namely sharing in real time data
when the vehicle is not plugged in (namely parked or on the road) to optimize the next charging
operation (which is the aim of Article 20a(3)), and sharing data when the EV is plugged to the
charging station. The latter case should notably be enabled by the new standard ISO 15118-20.
The mandatory implementation of this standard will be subject to upcoming secondary
legislation under Regulation (EU) 2023/1804 on the deployment of alternative fuels
infrastructure (54) but that communication protocol can already be used on a voluntary basis
before it is made mandatory.
In relation to
non-discriminatory terms, Regulation (EU) 2023/2854 (recital 5) explains that
users of a connected product or related service in the Union shall have access, in a timely
manner, the data generated by the use of that connected product or related service and that those
users can use the data, including by sharing them with third parties of their choice. It imposes
the obligation on data holders to make data available to users and third parties of the user’s
choice in certain circumstances. It also ensures that data holders make data available to data
recipients in the Union under fair, reasonable and non-discriminatory terms and conditions and
in a transparent manner.
(53) The list of requirements necessary to obtain the approval of a new type is exclusively defined in the context
of Regulation (EU) 2018/858 (Type Approval Regulation). Furthermore, as stated in article 6(5) of Type
Approval Regulation, Member States shall not prohibit, restrict or impede the placing on the market,
registration or entry into service of vehicles, systems, components or separate technical units which comply
with that Regulation.
(54) Pursuant to Art.21 of Regulation (EU) 2023/1804, the Commission shall adopt delegated acts to amend Annex
II by introducing technical specifications for the areas listed in Annex II (Technical specifications) to enable
full technical interoperability of the recharging and refuelling infrastructure.
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For the purposes of Article 20a(3), “
at no cost” should be understood as making the data
available without cost to battery owners, users and third parties.
3.3.5. Exchange interface
Regarding the interface for the data to be exchanged, it is crucial to avoid incompatible
implementation in Member States leading to a lack of cross-border interoperability.
In relation to EV batteries, in addition to the data collected by vehicle manufacturers or for
maintenance purposes, the vehicle transmits data when connected to a charging station via the
OBC (on-board charger). For charging purposes, charging stations and EVs predominately use
the standard ISO 15118 for physical (wired) communication. In this situation, the data transfer
takes place when the EV is connected. For forecasting purposes and planning of the next
charging operation, data must be communicated
over the air in order to enable real-time and
remote communication with third parties.
Access to vehicle data has been regulated at EU level since 2007 for repair data and on-board
diagnostics (OBD) to ensure fair competition on the repair and maintenance aftermarket. Since
then, the market for connected vehicles has developed. It is estimated that in 2020, around 48%
of all new cars shipped that year had built-in connectivity (55). In 2030, 96% of all new cars
shipped worldwide are expected to be connected cars.
In order to harmonise the way Article 20a(3) is implemented across the EU,
vehicle
manufacturers should be encouraged to make available parameters mentioned in this provision
through an harmonized interface that enable real time sharing. Today, some data points
mentioned in the revised RED (state of charge, battery capacity, …) are already shared ad hoc
with third parties through bilateral contracts. The obligation under Art. 20a(3) allows third
parties to connect to the interface easily and at no cost, and ensures access to the data mentioned.
For the case of stationary batteries, data flows go from the Battery Management System to
the Energy Management System (EMS) installed in the building as a standalone unit or as part
of a building management system. From EMS, information can be shared with users and third
parties using different standards.
In that regard, Member States should facilitate for owners/users of stationary batteries and third
parties the direct access to EMS or BMS, in accordance with data protection regulation, and the
Data and Cybersecurity Acts(56).
(55) https://www.statista.com/statistics/1276018/share-of-connected-cars-in-total-new-car-sales-worldwide/
(56) REGULATION (EU) 2019/881 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 April
2019 on ENISA (the European Union Agency for Cybersecurity) and on information and communications
technology cybersecurity certification and repealing Regulation (EU) No 526/2013 (Cybersecurity Act)
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The nature of devices connected to the BMS and the connection architecture differ with the
application and the system provider. It can be done either via an inverter or via a direct
communication with the EMS. In general, many standardised options for communication with
EMS and BMS are currently available in the market. Therefore, Member States should
recommend manufacturers to implement, when available, the standardised protocols in order to
achieve interoperability.
It is necessary to use existing standards for the data model and communication between the
BMS and the EMS, and then from the EMS to the third parties(57). Communication with the
owners or third parties could be enabled via standardised communication, or messaging
standards and APIs (e.g. using web services), and building on underlying existing domain-
specific data exchanges.
3.4.
Obligation to ensure smart and where appropriate bi-directional
recharging functionalities
3.4.1. General overview of obligations in 20a(4)
Article 20a(4) puts an obligation on Member States or their designated competent authorities
to ensure that, as of the transposition date, new and replaced non-publicly accessible normal
power recharging points installed in their territory will support smart recharging functionalities.
Article 14 of the EPBD has the same requirement.
New and replaced recharging points are considered to be all new charging points that are
installed in charging stations or that replace existing charging points.
Article 5(8) of AFIR already has an obligation to ensure smart recharging capabilities on
publicly accessible recharging points which is placed on the operators of publicly accessible
recharging points. However, AFIR does not address smart recharging at non-publicly accessible
recharging points.
Article 20a(4) of RED also stipulates that, where appropriate, new and replaced non–publicly
accessible normal power recharging points with smart recharging functionalities must be able
to support the
interface with smart metering systems, provided that the latter are deployed in
the Member States.
In addition, Article 20a(4) stipulates that, where appropriate, new and replaced non–publicly
accessible normal power recharging points must be able to support
bi-directional recharging functionalities, in connection with Article 15(3) and (4) of AFIR (58).
(57) Standards: IEC TC57 (Power systems management and associated information exchange) such as IEC 61850,
OpenAdr and IEC 60870-5-104. Using IEC 6087-5-104 or IEC 61850 allows DSOs to connect directly to
SCADA systems.
(58) Regulation (EU) 2023/1804 on the deployment of alternative fuels infrastructure
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Smart recharging can provide benefits to the grid by shifting the load in time without acting as
storage. It requires ensuring efficient and timely charging and balancing the load on the grid
depending on the state of charge of the battery. Since bi-directional recharging allows EV
batteries to behave like other batteries connected to the grid, it facilitates integration of variable
renewable energy by allowing to store excess energy when prices are low and supplying this
energy back to the grid when energy prices are high and the renewable generation is scarcer.
Open access to battery management system (BMS) data allows for precise control of the bi-
directional flow of energy, enabling grid integration strategies such as vehicle-to-grid (V2G)
and vehicle-to-home (V2H) systems.
Article 20a(4) aims to enable a market for smart and bi-directional recharging of electric
vehicles at non-publicly accessible recharging infrastructure. Smart and bi-directional
recharging are especially relevant for private recharging infrastructure, in homes, offices, and
for private fleets where cars are usually parked for longer periods of time. It can provide
flexibility and balancing services to the grid. Only if the recharging infrastructure is bi-
directional, EVs can serve as energy storage devices providing power during peak demand and
thus provide stability to the electricity grid during peak hours or during emergencies.
Bi-directional recharging is still in an early stage of development and is only available in some
European countries (and in pilot phases) due to several barriers such as unfavourable electricity
grid tariffs, double taxation, lack of markets for distributed energy resources and conversion
need from DC (battery) to an AC recharging point, which is the typical technology used in
home/workplace recharging points. However, the recent finalisation of supporting standards
(namely ISO 15118-20(59)) enables smart and bi-directional recharging and ensures
interoperability of data communication between EVs and charging points.
The implementation of the provisions of the revised RED on bi-directional recharging is closely
linked with provisions in other legislative acts such as Article 15(3) and (4) of AFIR and Article
14 of the EPBD. It is therefore essential that Member States ensure close collaboration across
their different government departments to achieve effective and coherent transposition and
implementation of this Article at national level.
3.4.2. Smart recharging
The obligation of Article 20a(4) requires Member States to ensure that non-publicly accessible
recharging points that are installed from the transposition date of the Directive as new ones or
to replace existing ones can support smart recharging functionalities. They shall ensure that
private charging points installed from the transposition date of the Directive are smart i.e., allow
the intensity of the electricity delivered to the battery to be adjusted dynamically, on the basis
of information received through electronic communication.
Member States should set up incentives for EV users to make use of smart recharging, namely
support the emergence of smart recharging contracts in the market. They should ensure that
(59) Standard finalised:
https://www.iso.org/standard/77845.html
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dynamic price contracts are available to final customers, as stipulated in the Electricity
Directive, and that distributed energy resources (such as car batteries) can participate in
balancing services, notably for grid congestion management.
Member States’ regulation should also encourage off-peak charging as a way to optimise the
use of the grid. By incentivizing EV owners to charge their vehicles during off-peak hours, it
would avoid excessive strain on the grid during peak demand times while promoting cost-
effective charging for consumers. In that regard, charging points that operate off peak by default
should be encouraged.
Today, EU legislation does not directly regulate direct connection of charging stations to
renewable generation. Within the framework of energy system integration, taking electricity
from the grid remains the most efficient way to optimize production from renewables and
recharging operations.
• The revised Electricity Market Directive (EMD) has included measures to accelerate
grid connections (notably (i) the framework to be provided by MS to facilitate the
connection of recharging points to the distribution networks, (ii) the publication by
DSO, within three months of the submission of the request, of information on the
capacity available for new connections including the capacity under connection request,
(iii) the possibility to request grid connection exclusively in digital form).
• The Grid Action Plan also announced important measures such as support to system
operators by ENTSO-E and the EU DSO in digitalising and streamlining procedures for
grid connection requests (guidance and recommendations to be issued by mid-2025)
and sharing of data by network users to support DSOs in the planning of network needs.
• With the revision of the RED, the EU has also taken important measures to accelerate
the permitting for grid connections of RES and co-located storage projects.
Consequently, Member States are encouraged to:
- ensure simpler streamlined procedures, when they exist, for connecting EV charging
points to the grid by setting in relevant legislation concrete provisions so that DSOs
have to respond in a reasonable amount of time to the request of new users requesting
grid connection (e.g. EVs, storage, RES…);
- ensure that DSOs and TSOs regularly provide information on the available grid hosting
capacities in their areas as well as pipeline of grid connection requests, with as much
space and time granular information as possible, so that potential future networks users,
including charging point operators, can consider them in their planning and investment
decisions.
Member States should also ensure that relevant stakeholders involved in the planning for and
development of electromobility infrastructure (e.g., municipalities, transport authorities, private
entities) provide regular information to DSOs on future projects for e-charging infrastructure,
ahead of the grid connection requests, to support DSOs’ network development planning.
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3.4.3. Interface with smart meters, where appropriate
Overall, smart meters can greatly facilitate demand response, by allowing consumers to increase
awareness of their energy consumption and providing granular and accurate data in a timely
manner to energy suppliers, that in combination with time-of-use tariffs and dynamic prices
incentivise the charging at times when demand is low or the renewable share is high. In that
regard, interfaces with smart metering systems are a necessary component of a smart recharging
system where such systems are deployed by Member States.
The Electricity Directive (60) provides in its articles 19 and 20 detailed requirements regarding
the deployment of smart metering systems. Where smart metering systems are systematically
deployed after 4 July 2019, they should comply with the specific functionalities described in
article 20 and Annex II, including the capability of providing to final customers information on
accurate actual consumption and time of use. Customers should be able to have access to
validated historical consumption data and to non-validated near real-time consumption data.
Non-validated data should be accessible through a standardised interface or through remote
access, in order to support automated energy efficiency programmes, demand response and
other services (e.g. smart recharging). Consequently, for smart metering systems meeting the
requirements of Article 20 and Annex II of the Electricity Directive, Member States should
ensure that new and replaced non–publicly accessible normal power recharging points installed
in their territory can support the interface with smart metering systems.
The Electricity Directive also states that smart metering systems that do not meet the
requirements of Article 20 and Annex II, shall not remain in operation after 5 July 2031.
Member States should provide practical guidelines with certain criteria or technical
specifications for ensuring the interface with smart metering systems.
Furthermore, according to Implementing Regulation (EU) 2023/1162 (61), for the provision of
non-validated near real-time data through a standardised interface, where applicable, Member
States shall have due regard for the use of relevant available standards, including standards that
enable interoperability. Without prejudice to future developments, standards available and in
use in national practices at the time of publication of the Implementing Regulation include the
following (non-exhaustive) list:
• EN 50491-11
• EN 62056 series – DLMS/COSEM
• EN 13757 series – Wired and Wireless M-bus
• EN16836 - Zigbee SEP 1.1
(60) Directive (EU) 2019/944 on common rules for the internal market for electricity
(61) In Annex, Table 3 – Procedure Conditions
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3.4.4. Bi-directional recharging, where appropriate
Bi-directional recharging is defined as a smart recharging operation where the direction of the
electricity flow can be reversed, allowing that electricity flows from the battery to the
recharging point that it is connected to. It therefore encompasses the main V2X applications,
namely Vehicle-to-Grid (V2G), Vehicle-to-Home (V2H), Vehicle-to-Building (V2B), etc.
Bi-directional recharging will help better integrate renewables in the energy system and make
the grid more resilient, while providing financial benefits for consumers. EVs have a large
potential to ensure flexibility and security of supply (62) that will result in a lower carbon
intensity of the electricity system.
It is in the discretion of Member States or their designated competent authorities to define in
which cases private recharging points must support bi-directional recharging functionalities.
When defining this, Member States should take into account the provisions of Article 15(3) and
(4) of AFIR, that apply to both public and private recharging points and require undertaking
specific assessments related to bi-directional recharging by June 2024 and every three years,
namely on:
• how the deployment and operation of recharging points could enable electric vehicles to
further contribute to the flexibility of the energy system (Article 15(3));
• the potential contribution of bi-directional recharging to reducing user and system costs
and increasing the renewable electricity share in the electricity system (Article 15(4)).
It is also required by Article 15(3) and (4) of AFIR that Member States take into account the
results of the assessments mentioned above and make them publicly available, and if necessary,
take appropriate measures as regards ensuring consistency of infrastructure planning with the
corresponding grid planning and adjust the geographical availability and distribution of bi-
directional recharging points in private areas.
Article 15(3) states that Member States may task the national regulatory authority to carry out
the assessment, while for Article 15(4) it is required that the regulatory authority needs to
undertake the assessment on the basis of input from transmission and distribution system
operators.
To this end, Member States would need to take into account the recommendations stemming
from those assessments under AFIR to elaborate on cases when bi-directional charging is
feasible.
Cases where bi-directional charging might be the most relevant are:
•
When expected private benefits exceed costs - The expected benefits of bi-directional
recharging which would benefit the households/businesses owning the charging stations
(62) EC (2019)
, Effect of electromobility on the power system and the integration of RES
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exceeds the additional costs of installing the charging infrastructure that allows for bi-
directional recharging.
•
When the size of the recharging infrastructure is large, for example in office spaces
and large residential buildings.
•
When there is a significant potential of renewables generation - Bi-directional
charging can store excess renewable energy and release it back to the grid when needed.
•
When flexibility is especially needed due to power grid congestion in a specific area
- Bi-directional charging in congested areas can help to increase the production of
renewables while reducing grid expansion needs.
•
When there is a specific need to enhance grid stability and reliability - Bi-directional
charging can support the grid by providing other services, such as voltage control and
emergency services.
•
When there are behind-the-meter storage or solar-PV in the building - Users could
be encouraged to allow bi-directional recharging functionalities if they have storage or
distributed renewables, as they would increase the benefits of bi-directional charging.
Fast charging points are not suitable for bi-directional charging operations.
Even though Article 20(4) does not set specific requirements on how to ensure smart and bi-
directional recharging for non-publicly accessible charging points, in addition to the technical
requirements, Member States could set up incentives for EV users to use bi-directional
recharging such as:
• Provide financial (or other) incentives for installing bi-directional recharging points.
• Enable dynamic pricing (or simpler time of use pricing strategies) to encourage EV
owners and users to adjust the charging behaviour according to the price signals. The
Electricity Regulation and Electricity Directive (Art. 11) already contain certain
provisions to address dynamic pricing. Introducing time-differentiated grid tariffs and
ensuring that vulnerable consumers are protected via social policy, rather than price
interventions (as per Article 5(2) of Electricity Directive) would be key.
Member States also have to avoid double charges, including network charges, for stored
electricity remaining within the premises of active customers that own an energy storage
facility, or when providing flexibility services to system operators, as requested in Article
15(5) (63) of the Electricity Directive.
(63) Member States shall ensure that active customers that own an energy storage facility: (a) have the right to a
grid connection within a reasonable time after the request, provided that all necessary conditions, such as
balancing responsibility and adequate metering, are fulfilled; (b) are not subject to any double charges,
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Member States should also enable a flexibility market for distributed energy resources
(including storage) to improve coordination of bi-directional recharging initiatives and DSO
activities.
When implementing provision on smart and bi-directional recharging, it is crucial that Member
States abstain from adopting national standards or technical specifications and use instead the
existing European standards or requirements stemming from the internal market legislation to
enable a smooth European market of bi-directional charging. In particular, a communication
standard between EVs and recharging infrastructure to enable bi-directional charging, but also
facilitate smart recharging, was adopted in 2022 (ISO 15118-20). The mandatory
implementation of this standard will be the subject of upcoming secondary legislation under
Regulation (EU) 2023/1804 on the deployment of alternative fuels infrastructure(64). It can
already be implemented on a voluntary basis by car manufacturers. In that regard, when
Member States deploy bi-directional recharging, EVs and recharging stations hardware should
rely on ISO 15118-20.
3.4.5. E-roaming
Recital 56 of Directive (EU) 2023/2413 stresses that it is beneficial that EV users can use their
subscription to e-mobility services at multiple recharging points (“e-roaming”). This possibility
of e-roaming ensures consumer choice and facilitates charging operations for the user. Already
today, e-roaming is widely established and available at the vast majority of publicly accessible
recharging points throughout the Union. Further facilitating e-roaming at privately-owned,
shared recharging points, such as those in the parking lots of hotels or offices, can also have
several benefits. EV users can make use of their subscriptions with their mobility service
provider, increasing the convenience of charging. Furthermore, it would reduce the need for
EV users to carry multiple cards or smartphone apps to access different private recharging
networks to which the EV user has access to. Therefore, Member States are encouraged to
assess the possibilities to further promote roaming at private recharging points (except for own
use), under the rules established in Article 5 of Regulation (EU) 2023/1804.
3.5.
Non-discriminatory access for small and mobile storage assets to the
electricity markets
3.5.1. General overview of obligations in 20a(5)
Article 20a(5) requires that Member States ensure that the national regulatory framework allows
small or mobile systems (for example, EVs, electric bikes, electric cargo bikes, heat pumps,
solar panels, batteries and other small decentralised energy sources) to
participate in the
including network charges, for stored electricity remaining within their premises or when providing flexibility
services to system operators; (c) are not subject to disproportionate licensing requirements or fees; (d) are
allowed to provide several services simultaneously, if technically feasible.
(64) The Commission is planning, via a delegated act under AFIR to be adopted in 2024, to mandate that standard
on publicly accessible and non-publicly accessible recharging points.
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electricity markets, including for congestion management and for the provision of flexibility
and balancing services, including through aggregation. In addition, it is required that Member
States provide a level playing field and
non-discriminatory participation in the electricity
markets for small, decentralised energy assets or mobile systems.
Furthermore, Article 20a(5) requires that Member States, in close cooperation with all market
participants and regulatory authorities, establish
technical requirements for the participation
of small or mobile systems in the electricity markets, on the basis of the technical characteristics
of those systems.
The
overall objective of this provision is to increase the role of distributed resources by
enabling them to provide flexibility and balancing services to the grid with a view to increasing
the overall efficiency of the electricity grid.
Exploiting the full potential of distributed energy resources (such as domestic and EV batteries,
heat pumps or PV panels) will offer considerable flexibility to the grid, in order to balance
supply and demand. Moreover, such resources limit investments for grid expansion due to
increased electrification.
Recital 57 of the revised RED explains that in order to facilitate the development of flexibility
services provided by distributed energy resources, the regulatory provisions, such as the ones
related to tariffs, commitment times and connection specifications, should be designed in a way
that does not hamper the potential of all storage assets, including small and mobile ones and of
other devices for example, heat pumps, solar panels and thermal storage, to offer flexibility and
balancing services to the system and to contribute to the further penetration of renewable
electricity, in comparison with larger, stationary storage assets. In addition to the general
provisions preventing market discrimination laid down in the Electricity Regulation and the
Electricity Directive, specific requirements should be introduced to address holistically the
participation of those assets and to remove any remaining barriers and obstacles to unleash the
potential of such assets to help the decarbonisation of the electricity system and empower the
consumers to actively participate in the energy transition.
More specifically, in relation to non-discriminatory participation of mobile storage systems and
other small decentralised energy assets in the electricity markets, recital 58 of the revised RED
states that this means that small assets are able to participate in all electricity markets, including
congestion management and the provision of flexibility and balancing services in a non-
discriminatory manner as compared to other electricity generation and storage systems, and
without disproportionate administrative or regulatory burden.
3.5.2. Detailed obligation
In relation to the
specific technical requirements referred to in Article 20a(5) for ensuring
participation in the electricity markets, a number of technical rules under the Electricity
Directive and the electricity Regulation are currently being put in place and will provide the
basis also for transposing and implementing Article 20a(5). The most relevant is the
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forthcoming network code on demand response(65), which is expected to be adopted as a
delegated act by the Commission in 2025, and will provide the harmonised rules and necessary
clarifications on the outstanding issues, including on facilitating the role of independent
aggregators and addressing the specific particularities of small storage assets such as EV
batteries.
Member States are encouraged to promote the use of load management systems as they have
benefits to distribute the load throughout time and between vehicles, and thereby avoid peaks
when several EVs are charged at the same location.
The following specific aspects are of particular importance when transposing and implementing
the above obligation:
1.
Participation in capacity markets – Member States are recommended to ensure
seamless participation in capacity mechanism markets for distributed assets, by
lowering minimum bid sizes, lowering minimum lead times between concluding the
allocation process and start of delivery, limiting the option for long-term contracts
which favour conventional sources of capacity and larger assets over aggregators with
newer sources (e.g., France practices certification of capacity up to 2 months before the
year of delivery); limiting delivery periods (e.g., for specific seasons or hours of the
year);
2.
Local flexibility markets / services, including congestion management - Member
States could mandate at national level common product definitions for other services
procured by DSOs on basis of the technical requirements set at EU level. This can be
achieved by market-based platforms for congestion management (e.g. GOPACS in the
Netherlands), which verify re-dispatching and load curtailment bids at national level (by
combining relevant congestion management actions with opposite market actions to
balance the grid);
3.
Retail market distortions – Member States should ensure that flexibility of
small/mobile assets is explicitly mentioned in the price in a transparent manner.
Therefore, flexibility would be unleashed by their owners and would become available
for aggregators for various flexibility services.
Member States could already start simplifying prequalification procedures that will be
addressed in the network code on demand response. It allows for a common national
prequalification across all markets, applying ex-post verification for local services for
congestion management and voltage control (by reducing the prequalification process to a
communication test, data exchange, financial aspects and legal provisions, e.g. as already done
in Estonia and France for some balancing products). It could also allow for different unit types
to be aggregated within the same product and reducing requirements for similar assets of
(65) Based on ACER Framework Guidelines on Demand Response, which be developed into a set of harmonised
EU-wide rules governing various aspects of demand side flexibility.
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aggregated products, and reduce pre-prequalification requirements in the case of product
changes. For example, in Spain, aggregator products are prequalified as a whole if individual
assets have capacity below 1MW.
Box 6 - Relevant aspects under the Electricity Directive and the Electricity Regulation
The
Electricity Directive puts in place the basic rules on non-discriminatory access to
flexibility markets (Article 3), possibilities for (independent) aggregation (Article 13) and the
role of active customers (Articles 15-17) participating in the electricity markets (that own an
energy storage facility). It requires that Member States put in place appropriate measures to
ensure that distribution system operators are able to procure flexibility services from providers
of distributed generation, demand response or energy storage. It also puts in place the
requirements for dynamic pricing availability (Article 11). Therefore, the full transposition of
the existing Electricity Directive should address the main barriers to non-discriminatory market
access for small and mobile systems and their aggregators to electricity markets and provide
good basis for implementation of provisions of Article 20a(5).
In addition, the
Electricity Regulation (EU) 2019/943 contains provisions for functioning of
electricity markets in Article 6 (on the organisation of balancing markets), Article 18 (charges
for network access), Article 20 (resource adequacy), and Article 22 (capacity mechanisms
design principles).
The legal provisions will be complemented by a network code on demand response specifying
conditions for small sources to be active in flexibility markets. It will set specific technical rules
at EU level to enable non-discriminatory market entry and participation in flexibility services
for various types of small and mobile systems including EVs and their aggregators. The network
code will clarify the framework and technical requirements for aggregators to fulfil their role at
EU level, e.g., defining different aggregation models, collecting and sharing methods to
quantify the provided flexibility (baseline methodologies), and proposing simplified
prequalification procedures and principles for the financial settlement of revenues generated by
flexibility.
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Annex I - Obligations under Article 20a
Article 20a - Facilitating system integration of renewable electricity
1. Member States shall require transmission system operators and, if the data are available
to them, distribution system operators in their territory, to make available data on the
share of renewable electricity and the greenhouse gas emissions content of the electricity
supplied in each bidding zone, as accurately as possible in intervals equal to the market
settlement frequency but of no more than one hour, with forecasting where available.
Member States shall ensure that distribution system operators have access to the
necessary data. If distribution system operators do not have access, pursuant to national
law, to all the data needed, they shall apply the existing data reporting system under the
European Network of Transmission System Operators for Electricity, in accordance
with the provisions of Directive (EU) 2019/944. Member States shall provide incentives
for upgrades of smart grids to better monitor grid balance and make available real time
data.
If technically available, distribution system operators shall also make available
anonymised and aggregated data on the demand response potential and the renewable
electricity generated and injected to the grid by self-consumers and renewable energy
communities.
2. The data referred to in paragraph 1 shall be made available digitally in a manner that
ensures interoperability on the basis of harmonised data formats and standardised data
sets so that it can be used in a non-discriminatory manner by electricity market
participants, aggregators, consumers and end-users, and that it can be read by electronic
communication devices such as smart metering systems, electric vehicle recharging
points, heating and cooling systems and building energy management systems.
3. In addition to the requirements laid down in Regulation (EU) 2023/1542, Member States
shall ensure that manufacturers of domestic and industrial batteries enable real-time
access to basic battery management system information, including battery capacity,
state of health, state of charge and power set point, to battery owners and users, as well
as to third parties acting, with explicit consent, on the owners’ and users’ behalf, such
as building energy management undertakings and electricity market participants, under
non-discriminatory terms, at no cost and in accordance with the data protection rules.
Member States shall adopt measures to require that vehicle manufacturers make
available, in real-time, in-vehicle data related to the battery state of health, battery state
of charge, battery power set point, battery capacity, and, where appropriate, the location
of electric vehicles, to electric vehicle owners and users, as well as to third parties acting
on the owners’ and users’ behalf, such as electricity market participants and
electromobility service providers, under non- discriminatory terms and at no cost, in
accordance with the data protection rules, and in addition to further requirements with
regard to type approval and market surveillance laid down in Regulation (EU) 2018/858
of the European Parliament and of the Council (*).
4. In addition to the requirements laid down in Regulation (EU) 2023/1804, Member States
or their designated competent authorities shall ensure that new and replaced non–
publicly accessible normal power recharging points installed in their territory can
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support smart recharging functionalities and, where appropriate, the interface with smart
metering systems, when deployed by Member States, and bi-directional recharging
functionalities in accordance with the requirements of Article 15(3) and (4) of that
Regulation.
5. In addition to the requirements laid down in Regulation (EU) 2019/943 and Directive
(EU) 2019/944, Member States shall ensure that the national regulatory framework
allows small or mobile systems such as domestic batteries and electric vehicles and
other small, decentralised energy sources to participate in the electricity markets,
including congestion management and the provision of flexibility and balancing
services, including through aggregation. To that end, Member States shall, in close
cooperation with all market participants and regulatory authorities, establish technical
requirements for participation in the electricity markets, on the basis of the technical
characteristics of those systems.
Member States shall provide a level playing field and non-discriminatory participation
in the electricity markets for small, decentralised energy assets or mobile systems.
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Annex II – Relevant definitions
Relevant definitions for Article 20a(1):
•
Distribution system operator is defined in Article 2(29) of Directive (EU) 2019/944
as a natural or legal person who is responsible for operating, ensuring the maintenance
of and, if necessary, developing the distribution system in a given area and, where
applicable, its interconnections with other systems, and for ensuring the long-term
ability of the system to meet reasonable demands for the distribution of electricity;
•
Transmission system operator is defined in Article 2(35) of Directive (EU) 2019/944
as a natural or legal person who is responsible for operating, ensuring the maintenance
of and, if necessary, developing the transmission system in a given area and, where
applicable, its interconnections with other systems, and for ensuring the long-term
ability of the system to meet reasonable demands for the transmission of electricity;
•
Bidding zone is defined in Article 2(14a) of the Revised RED, and refers to the
definition of Article 2(65) of Regulation (EU) 2019/943, namely the largest
geographical area within which market participants are able to exchange energy without
capacity allocation;
•
Near real-time is defined in Article 2(26) of Directive (EU) 2019/944 in the context of
smart metering as a short time period, usually down to seconds or up to the imbalance
settlement period in the national market;
•
Market settlement frequency is equal to ‘imbalance settlement period’, as Article
2(15) of Regulation (EU) 2019/943;
•
Demand response is defined in Article 2(20) of Directive (EU) 2019/944 as the change
of electricity load by final customers from their normal or current consumption patterns
in response to market signals, including in response to time-variable electricity prices or
incentive payments, or in response to the acceptance of the final customer's bid to sell
demand reduction or increase at a price in an organised market as defined in point (4) of
Article 2 of Commission Implementing Regulation (EU) No 1348/2014, whether alone
or through aggregation;
•
Renewables self-consumers is defined in Article 2(14) of Directive (EU) 2018/2001 as
a final customer operating within its premises located within confined boundaries or,
where permitted by a Member State, within other premises, who generates renewable
electricity for its own consumption, and who may store or sell self-generated renewable
electricity, provided that, for a non-household renewables self-consumer, those activities
do not constitute its primary commercial or professional activity;
•
Renewable energy communities is defined in Article 2(16) of Directive (EU)
2018/2001 as a legal entity, which, in accordance with the applicable national law, is
based on open and voluntary participation, is autonomous, and is effectively controlled
by shareholders or members that are located in the proximity of the renewable energy
projects that are owned and developed by that legal entity; (b) the shareholders or
members of which are natural persons, SMEs or local authorities, including
municipalities; (c) the primary purpose of which is to provide environmental, economic
or social community benefits for its shareholders or members or for the local areas where
it operates, rather than financial profits.
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Relevant definitions for Article 20a(2):
•
Interoperability is defined in Article 2(40) of Regulation (EU) 2023/2854 as the ability
of two or more data spaces or communication networks, systems, connected products,
applications, data processing services or components to exchange and use data in order
to perform their functions;
•
Interoperability in the context of smart metering is defined in Article 2(24) of Directive
(EU) 2019/944 as the ability of two or more energy or communication networks,
systems, devices, applications or components to interwork to exchange and use
information in order to perform required functions.
Relevant definitions for Article 20a(3):
•
Domestic battery is defined in Article 2(14g) of the revised RED as a stand-alone
rechargeable battery of rated capacity greater than 2 kwh, which is suitable for
installation and use in a domestic environment;
•
Electric vehicle battery is defined in Article 2(14h) of the revised RED and is referring
to Article 3(1), point (14) of Regulation (EU)2023/1542, namely a battery that is
specifically designed to provide electric power for traction in hybrid or electric vehicles
of category L as provided for in Regulation (EU) No 168/2013, that weighs more than
25 kg, or a battery that is specifically designed to provide electric power for traction in
hybrid or electric vehicles of categories M, N or O as provided for in Regulation (EU)
2018/858;
•
Industrial battery is defined in Article 2(14i) of the revised RED and is referring to
Article 3(1), point (13) of Regulation (EU) 2023/1542, as a battery that is specifically
designed for industrial uses, intended for industrial uses after having been subject to
preparation for repurposing or repurposing, or any other battery that weighs more than
5 kg and that is neither an electric vehicle battery, an LMT battery, nor an SLI battery;
•
State of health is defined in Article 2(14j) of the revised RED and is referring to Article
3(1), point (28) of Regulation (EU) 2023/1542, as a measure of the general condition of
a rechargeable battery and its ability to deliver the specified performance compared with
its initial condition;
•
State of charge is defined in Article 2(14k) of the revised RED and is referring to
Article 3(1), point (27), of Regulation (EU) 2023/1542, as the available energy in a
battery expressed as a percentage of its rated capacity as declared by the manufacturer;
•
Power set point is defined in Article 2(14l) of the revised RED as the dynamic
information held in a battery’s management system prescribing the electric power
settings at which the battery optimally operates during a recharging or a discharging
operation, so that its state of health and operational use are optimised;
•
Battery Management System is defined in Article 3(25) of Regulation (EU) 2023/1542
as an electronic device that controls or manages the electric and thermal functions of a
battery in order to ensure the battery’s safety, performance and service life, manages and
stores the data for the parameters for determining the battery’s state of health and
expected lifetime and communicates with the vehicle, light means of transport or
appliance in which the battery is incorporated, or with a public or private charging
infrastructure.
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Relevant definitions for Article 20a(4):
•
Smart metering system is defined in Article 2(14c) of the revised RED
and is referring
to Article 2, point (23), of Directive (EU) 2019/944;
as an electronic system that is
capable of measuring electricity fed into the grid or electricity consumed from the grid,
providing more information than a conventional meter, and that is capable of
transmitting and receiving data for information, monitoring and control purposes, using
a form of electronic communication;
•
Recharging point is defined to in Article 2(14d) of the revised RED and is referring
to Article 2, point (48), of Regulation (EU) 2023/1804 as a fixed or mobile, on-grid or
off-grid interface for the transfer of electricity to an electric vehicle which, although it
may have one or more connectors to accommodate different connector types, is capable
of recharging only one electric vehicle at a time, and which excludes devices with a
power output less than or equal to 3,7 kW the primary purpose of which is not the
recharging of electric vehicles;
•
Smart recharging is defined in Article 2(14m) of the revised RED
as a recharging
operation in which the intensity of electricity delivered to the battery is adjusted
dynamically, on the basis of information received through electronic communication;
•
Bi-directional recharging is defined in Article 2(14o) of the revised RED and is
referring to Article 2, point (11), of Regulation (EU) 2023/1804 as a smart recharging
operation where the direction of the electricity flow can be reversed, allowing that
electricity flows from the battery to the recharging point it is connected to;
•
Normal power recharging point is
defined in Article 2(14p) of the revised RED and is
referring to Article 2, point (37), of Regulation (EU) 2023/1804 as a recharging point
with a power output less than or equal to 22 kW for the transfer of electricity to an
electric vehicle.
Relevant definitions for Article 20a(5):
•
Aggregation is
defined in Article 2(18) of Directive (EU) 2019/944 as a function
performed by a natural or legal person who combines multiple customer loads or
generated electricity for sale, purchase or auction in any electricity market;
•
Independent aggregator is
defined in Article 2(19) of Directive (EU) 2019/944 as a
market participant engaged in aggregation who is not affiliated to the customer's
supplier;
•
Distributed generation is
defined in Article 2(32) of Directive (EU) 2019/944 as
generating installations connected to the distribution system;
•
Energy storage is
defined in Article 2(59) of Directive (EU) 2019/944 as, in the
electricity system, deferring the final use of electricity to a moment later than when it
was generated, or the conversion of electrical energy into a form of energy which can be
stored, the storing of such energy, and the subsequent reconversion of such energy into
electrical energy or use as another energy carrier;
•
Flexibility is defined in Article 2(79) of the amended Regulation (EU) 2019/943 means
the ability of an electricity system to adjust to the variability of generation and
consumption patterns and grid availability, across relevant market timeframes.
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Document Outline