With the growth of renewables, the increased interconnection of European grids, the development of local energy initiatives, and the specific requirements on TSO – DSO cooperation as set forth in the different Network Codes and Guidelines, TSOs and DSOs face new challenges that will require greater coordination. The European Commission adopted legislative proposals on the energy market that promote cooperation among network operators as they procure balancing, congestion management and ancillary services. The measures encourage procurement of services at both the transmission and distribution level, recognizing that this will enable more efficient and effective network management, will increase the level of demand response and the capacity of renewable generation.

TSOs and DSOs must now define the services they want to procure in collaboration with market participants, and must set up ways to procure them in a coordinated manner. Digitalisation is a key driver for coordination and active system management in the electricity grid, enabling TSOs and DSOs to optimise the use of distributed resources and ensure a cost-effective and secure supply of electricity but also empowers end-users to become active market participants, supporting self-generation and providing demand flexibility. To support the transformation, the INTERRFACE project will design, develop and exploit an Interoperable pan-European Grid Services Architecture to act as the interface between the power system (TSO and DSO) and the customers and allow the seamless and coordinated operation of all stakeholders to use and procure common services. State-of-the-art digital tools based on blockchains and big data management will provide new opportunities for electricity market participation and thus engage consumers into the INTERRFACE proposed market structures that will be designed to exploit Distributed Energy Resources.