Scope

The transformation of Europe’s electricity distribution networks is not only a technical challenge but also a regulatory one. As grids evolve to integrate high shares of renewables, electrified demand, and digital solutions, innovation becomes essential to ensure reliability, efficiency, and sustainability. Yet, innovation in regulated sectors often faces structural barriers: cost recovery mechanisms, risk allocation, and compliance obligations can unintentionally discourage experimentation and adoption of new technologies.

Recent European initiatives – such as the Clean Energy Package and evolving Electricity Market Design – signal a shift toward enabling innovation through regulatory frameworks. Concepts like regulatory sandboxes, performance-based incentives, and innovation allowances are emerging as tools to reconcile innovation with consumer protection and system security. At the national level, approaches vary widely: some regulators actively promote pilot projects and flexibility markets, while others remain cautious, prioritizing stability over change.

This round table will explore how regulation can become a driver rather than a barrier to innovation. Key questions include:

• What mechanisms at EU and national level best support innovation in distribution networks?
• How can regulators balance experimentation with fairness and reliability?
• What lessons can be drawn from countries that have successfully implemented innovation-friendly frameworks?

By bringing together voices from regulatory authorities, system operators, policy makers, and industry experts, the discussion aims to identify practical pathways for embedding innovation into the regulatory DNA of Europe’s energy transition.