There are several aspects to the integration issue. First is the planning and administrative barrier that has to be overcome. For instance, the EU environmental regulations are often hindering a smooth planning procedure. Nobody wants to destroy the natural habitat of species and mankind, but clear and rapid procedures are very necessary.

Second, there are technical aspects, like maintaining a high reliability of the grid and distribution systems. Trying to balance intermittent sources like wind and solar with the highly fluctuating demand is a challenge that should and can be met. In the coming decade, the grid will need large investments anyway. It is very necessary to have the right incentive to invest billions in the right kind of grid.

And third, there is the organisation of the power market place. Wind power and solar energy have not yet outgrown the phase of just “intruding” in the traditional power markets. Within a decade renewable energy sources will overtake coal, nuclear and even natural gas as the most important power source. So they deserve a full acknowledgement by the market, or even better: a dominant position.

On the highest political levels within the EU much lip service has been paid to the integration issue of wind and other renewable sources. But neither the proposals for the Renewable Energy Directive, nor the Third Package for the liberalisation of the power market, contain concrete measures. Given the time delay between planning and building new infrastructure of at least ten years, grid operators and markets need to have some certainty about where they should develop.

There are large established parties, so reorganising infrastructure and the market is a very tricky issue. The European Commission is the only body that could possibly force the market into one direction more than another. We are expecting that in the coming months, the Commission will give more guidance to this topic than ever before.

Rolf de Vos
Editor in chief
GreenPrices
r.devos@greenprices.com