Distributed Generation and Distribution Market Diversity in Europe

This report reviews the relevant European Union (EU) regulatory framework, and specific attention is paid to the concept of unbundling of power distribution sector in Europe. The report then discusses the penetration of distributed generation (DG) technologies in the EU member states and the corresponding interrelations with distribution features, and it compares the unbundling of the distribution and supply markets using econometric indicators such as the Herfindahl–Hirschmann and the Shannon–Wiener indices. Policy recommendations conclude the paper.