{"id":163410,"date":"2025-12-11T13:09:31","date_gmt":"2025-12-11T13:09:31","guid":{"rendered":"https:\/\/www.pv-tech.org\/?p=163410"},"modified":"2025-12-11T13:09:35","modified_gmt":"2025-12-11T13:09:35","slug":"european-commission-proposes-european-grids-package-improve-connection-infrastructure","status":"publish","type":"post","link":"https:\/\/www.pv-tech.org\/european-commission-proposes-european-grids-package-improve-connection-infrastructure\/","title":{"rendered":"European Commission proposes European Grids Package to improve connection infrastructure"},"content":{"rendered":"\n
\"Dan
‘A truly interconnected and integrated energy system is the foundation of a strong and independent Europe,’ said Dan J\u00f8rgensen. Image: Dan J\u00f8rgensen, via LinkedIn.<\/figcaption><\/figure>\n\n\n\n

The European Commission has proposed a new two-pronged approach to improving Europe\u2019s energy infrastructure, which will aim to accelerate and increase the transparency of the grid permitting process, and establish eight new \u2018energy highways\u2019 to deliver transmission capacity to areas of \u201cstrategic importance\u201d to the EU.<\/p>\n\n\n\n

The first part of this proposal\u2014the \u2018European Grids Package\u2019\u2014will see reforms made to the Trans-European Networks for Energy (TEN-E) initiative, introduced in 2013 to improve grid connections across Europe, and particularly between the grids of individual member states.<\/p>\n\n\n\n

The package includes what the Commission calls a \u201cgap filling process\u201d where the Commission can identify and address gaps in cross-border electricity transmission that have not yet been plugged by \u201csuitable project proposals\u201d. This is particularly important for the Commission as, according to the body, national regulators \u201cdo not have the power to deal with cross-border infrastructure planning\u201d.<\/p>\n\n\n\n

The Commission also noted a \u201csubstantial gap\u201d between the current state of cross-border transmission infrastructure and the pace of future developments to ensure energy security across the bloc. The Commission notes that Europe is currently on pace to have 41GW of cross-border electricity transmission capacity in place by 2030, less than half of an 88GW target put in place; this target increases to 108GW by the end of 2040.<\/p>\n\n\n\n

The Grids Package will also emphasise public participation in project planning, another area that the EU is uniquely positioned to oversee, as these grid projects will affect people across national borders. The Commission has proposed that new renewable energy projects larger than 10MW would \u201cshare benefits with the local population\u201d, and it would work to ensure \u201cfair cost-sharing\u201d between groups involved in energy generation and transmission projects, but did not provide further details on these processes.<\/p>\n\n\n\n

Similarly, the Commission announced plans to \u201cprovide more transparency and predictability in the way costs and benefits are assessed and shared\u201d for these cross-border projects, but did not provide further details on how it would go about doing this beyond a general commitment to establish \u201cEU-wide principles for a fair and predictable cross-border cost-allocation process\u201d.<\/p>\n\n\n\n

Tackling interconnection inefficiencies<\/h2>\n\n\n\n

The Commission acknowledged that developing a robust cross-border grid, and one that emphasises renewable energy and battery energy storage systems (BESS), is integral to ensuring Europe\u2019s energy security following considerable criticism of its existing grid infrastructure<\/a>.<\/p>\n\n\n\n

The EU has already set a 15% interconnection target by 2030 for its member states, but noted this week that \u201cseveral\u201d countries are not on track to meet this target. The Commission described the potential cost of inaction, and thus reliance on imported fuels, particularly oil and gas, as \u201cstaggering\u201d; in 2022, 98% of all oil and gas used by EU member states was imported from outside the bloc.<\/p>\n\n\n\n

The Commission also noted that industrial electricity prices in Europe in 2024 were more than double that of China and the US – \u20ac0.199\/kWh (US$0.23\/kWh) compared to \u20ac0.082\/kWh and \u20ac0.075\/kWh, respectively -, while the average electricity price for EU consumers was as high as \u20ac0.3835\/kWh in Germany. The theory is that improving transmission infrastructure within the bloc would help reduce reliance on electricity imports from farther afield, and minimise some of the power price discrepancy between individual member states.<\/p>\n\n\n\n

However, the Commission noted that upgrading Europe\u2019s cross-border energy infrastructure would require a mammoth \u20ac1.2 trillion investment until 2040, making clear the scale of the challenge. However, it argued that greater cross-border energy resilience would lead to long-term financial benefits for the bloc. It noted that grid investment of \u20ac5 billion would reduce system costs by \u20ac8 billion, while \u201cenhanced market integration\u201d could generate annual cost savings of as much as \u20ac40 billion.<\/p>\n\n\n\n

Commission proposes eight \u2018energy highways\u2019<\/h2>\n\n\n\n

The Commission also estimates that boosting cross-border electricity trade by 50% could increase annual GDP growth in the EU by around \u20ac18 billion by the end of the decade, and facilitating more cross-border transmission and trade is a key component of the \u2018energy highways\u2019 component of the Commission\u2019s proposal.<\/p>\n\n\n\n

The second part of the Commission\u2019s proposal, and one that aims to expand cross-border transmission capacity in particular, takes the form of eight \u2018energy highways\u2019, in the following areas:<\/p>\n\n\n\n