Laura Otýpková
Lawyer and Head of the Responsible Energy Team
Frank Bold participated in the preparation of a new report examining the changes underway in the European energy sector and the need to modernize electricity grids to accommodate more renewable energy sources with emphasis on Central and Eastern Europe (CEE).
The report, led by Climate Action Network Europe, finds that aging electricity infrastructure in Central and Eastern Europe is limiting the integration of renewable power like wind and solar. About a third of Europe’s low voltage grid is over 40 years old and often unable to handle two-way power flows from distributed energy resources. This has resulted in renewable energy projects being denied connection or facing high costs due to grid upgrades.
To fully realize the benefits of the clean energy transition, the report recommends governments prioritize upgrading grids, ensure regulations that allow system operators to procure flexibility services, and empower small renewable projects and energy communities. It also calls for greater regional cooperation on grid planning and cross-border interconnections.
“The study addresses one of the main sore points of the current energy transition in the CEE - the state of our grids - not only describing the current situation, but more importantly offering recommendations on how to improve it. In the Czech Republic improving grid capacity will be especially important as new rules allowing electricity sharing in energy communities take effect in 2024," says Jan Bakule from Frank Bold.
If Central and Eastern European countries act on the report's recommendations, they could accelerate deployment of renewable energy and position themselves as leaders in developing modern, decentralized and climate-friendly power systems. Upgrading electricity networks is essential to cut fossil fuel dependence and meet European Union climate and renewable targets.
You can find the interactive infographic with the report's recommendations here and also read the full report here.
Due diligence under the Corporate Sustainability Due Diligence Directive (CSDDD) is designed to direct finite corporate resources towards the issues that matter most for people and the environment. At the heart of that effort is prioritisation, defined in Article 9 of the Directive. Having spoken about this topic at the RBA conference this week, I want to share some reflections on what good prioritisation looks like in practice and what pitfalls to avoid.
The Parliament proposal shows that many of the concerns raised through Frank Bold’s research and engagement with policymakers are now entering the legislative mainstream. But the negotiations ahead will determine whether the final framework is capable of addressing the structural weaknesses that continue to undermine trust in the sustainable investment market.
The European Commission has published its draft Delegated Regulation revising the European Sustainability Reporting Standards (ESRS). The revision follows the Omnibus I Simplification Package and is presented as a burden-reduction measure. Some of it is - but a closer reading reveals a set of changes that go well beyond simplification, departing from EFRAG's technical advice and disregarding formal recommendations from the European Supervisory Authorities. Many of these changes have significant implications for the quality and comparability of sustainability data available to the market and public.
