To help deliver the European Green Deal that aims to make Europe the first climate neutral continent, the EC’s proposed action plan aims ‘to make sure the region’s electricity grids will operate more efficiently and will be rolled out further and faster’.

Having already put in place a ‘supportive legal framework for the rollout of electricity grids across Europe’, the EC reports that: ‘With the EU markets fully integrated, a modernised infrastructure network will ensure citizens and business can benefit from cheaper and cleaner energy.’

Electricity consumption in the EU is expected to increase by around 60% between now and 2030, according to the EC. Networks will have to accommodate a more digitalised, decentralised and flexible system with millions of rooftop solar panels, heat pumps and local energy communities sharing their resources, more offshore renewables coming online, more electric vehicles (EVs) to charge, and growing hydrogen production needs. ‘With 40% of our distribution grids more than 40 years old and cross-border transmission capacity due to double by 2030, €584bn in investments are necessary,’ says the EC.

The action plan aims to address the main challenges in expanding, digitalising and optimising EU electricity transmission and distribution grids. It identifies concrete and tailor-made actions to help unlock the needed investment to get European electricity grids up to speed, focusing on implementation and swift delivery to make a difference in time for 2030 objectives. More specifically, it aims to:

• Accelerate the implementation of ‘projects of common interest’ and develop new projects through political steering, reinforced monitoring and more proposals.
• Improve the long-term planning of grids to accommodate more renewables and electrified demand, including hydrogen, in the energy system by steering the work of system operators as well as national regulators.
• Introduce regulatory incentives through guidance on forward-looking investments and on cross-border cost sharing for offshore projects.
• Incentivise a better usage of the grids with enhanced transparency and improved network tariffs for smarter grids, efficiency, and innovative technologies and solutions by supporting the cooperation between system operators and recommendations by the Agency for the Cooperation of Energy Regulators (ACER).
• Improve access to finance for grids projects by increasing visibility on opportunities for EU funding programmes, especially for smart grids and modernisation of distribution grids.
• Stimulate faster permitting for grids deployment by providing technical support for authorities and guidance on better engaging stakeholders and communities.
• Improve and secure grid supply chains, by harmonising industry manufacturing requirements for generation and demand connection.

EC prolongs energy emergency measures  

Meanwhile, the EC has also proposed a 12-month prolongation of the emergency measures introduced last year in response to the energy crisis provoked by Russia’s invasion of Ukraine and weaponisation of its energy resources.  

While the situation on the European energy market is more secure than a year ago, the EC believe the extension is necessary ‘to further enhance security of gas supply and strengthen market resilience’.  

The three measures proposed for extension comprise the so-called gas solidarity measures, the market correction mechanism (MCM) and the rules related to permit-granting for renewable energy projects.