Executive Summary

As the most integrated network in the world, European electricity grids are a core component of the European Union (EU)'s energy security. This report demonstrates the key role and increasing relevance of Distribution System Operators (DSOs) for a resilient European energy system. With the transformation of the energy system, distribution network operators have developed into active DSOs with greater responsibilities in strengthening system resilience and energy reliability in coordination with Transmission System Operators (TSOs). By integrating 70% of renewables and connecting Decentralised Energy Sources (DER) like Electric Vehicles (EV) and heat pumps, DSOs play a growing role in enhancing the EU's energy independence and in collaborating with TSOs to ensure security of supply by reinforcing system resilience, i.e. the ability to prevent, respond to and recover from disruptions while maintaining balanced and reliable operation.

Furthermore, beyond physical security of supply, DSOs are increasingly relevant for designing and implementing measures to face growing external challenges in cybersecurity and climate adaptation. Their role should be further understood in light of the evolving EU resilience framework, notably the Directive on the security of Network and Information System (2022/2555/EU, NIS2), the Resilience of Critical Energy Entities Directive (2022/2557/EU, CER Directive) and the Network Code on Cybersecurity of the electricity sector (2024/1366/EU, NC CS), that shift the EU energy security from a pure security of supply focus to an all-hazard approach. In a more unstable geopolitical environment, resilient distribution grid operations and security measures are hence key to protect grid infrastructure against physical and cyber-attacks, the latest having doubled between 2020 and 2022 in the power sector. DSOs also face more frequent extreme-weather events which have already caused over EUR 145 billion in economic losses across the EU. To respond effectively to such events, it is essential to have secure, affordable, and available supply chain equipment to reinforce grid infrastructure and react to emergency scenarios. The report therefore adopts a strategic approach, shedding light on the challenges to the resilience of the EU's energy system and the role of DSOs in addressing them.

This report builds on the Technical Vision published in January 2025 and was developed in parallel with the ongoing reflection led by DSO Entity's ad-hoc expert group on the Iberian Peninsula incident of April 2025.

In a nutshell, the report addresses the following aspects:

• - It underlines the need to follow a broader and more forward-looking perspective focusing more closely on resilience (also in economic regulation) to enhance the EU's energy security in the long term, especially in connection with the role of electricity grids.
• - It sheds light on how distribution grids are increasingly relevant for the resilience of the EU's energy system.
• - It demonstrates the increasing responsibilities of DSOs in maintaining system stability and reliable energy in coordination with TSOs in a changing energy system.
• - It highlights how DSOs need to adapt to new external challenges through an all-hazard approach by actively strengthening cybersecurity and developing climate adaptation measures.

Eventually, in the context of the EU-level discussion on what is needed for an adapted energy security architecture, the report underlines that sufficient investments in increasing grid resilience are a non-regret option and an adapted and forward-looking regulatory framework is hence needed to set the right conditions through an anticipatory investment approach. The report also stresses how essential the effective implementation of existing EU regulations is to strengthen resilience and prevent delays in the decarbonisation process. Given the increasing relevance of DSOs for system resilience, the report finally underlines the importance of a true TSO-DSO cooperation to ensure a system-of-systems approach also for energy security and how a stronger involvement of DSO Entity should be considered at the EU level when assessing pan-EU security incidents.

Download the full report at: 1775465857028 

Source: DSO Entity