Microgrids under EU law
This dissertation explores how microgrids—decentralised electricity systems that can operate independently from the main grid—can be regulated in the EU to minimise transaction costs and support the energy transition. As renewable energy adoption grows, the ageing, centralised electricity grid struggles with integration challenges like grid congestion and intermittent energy flows. Microgrids can offer a solution to these problems by increasing resilience and flexibility, yet their adoption remains limited due to legal barriers and high transaction costs in their development and operation. Using a mix of legal-doctrinal analysis and empirical research (surveys and interviews with developers and regulators), the dissertation investigates how current EU regulations create uncertainty, increasing costs for microgrid development and operation. It identifies core issues such as complex permitting processes, lack of access rules, and resistance from National Regulatory Authorities. The study proposes a functional regulatory approach, aligning microgrid regulations with their technical realities. This involves adapting existing EU frameworks—like those for Closed Distribution Systems (CDS) and Citizen Energy Communities (CEC)—to explicitly include microgrids, particularly their islanding capabilities. It calls for clearer rules on microgrid operation, simplification of procedures, and stronger rights for operators, while maintaining grid safety and flexibility.