Briefing - EU electricity grids - 14-05-2025
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The modernisation and expansion of electricity grids lies at the heart of the EU's energy transition and decarbonisation efforts. In the context of the rising share of electricity in final energy consumption, there is increasing demand for grid upgrades to acBriefing - EU electricity grids - 14-05-2025
The modernisation and expansion of electricity grids lies at the heart of the EU's energy transition and decarbonisation efforts. In the context of the rising share of electricity in final energy consumption, there is increasing demand for grid upgrades to accommodate the new generation capacity and to adapt, in particular, to the intermittent nature of renewable energy sources. Key concerns include ageing infrastructure, investment shortfalls, and regulatory complexities that hinder rapid modernisation of grids and efficient integration of decentralised energy production. Interconnectivity between EU Member States is important to ensure energy security and reliability: the integration of European electricity markets benefits consumers by up to €34 billion every year. To meet the challenge posed by electricity infrastructure modernisation, various innovative solutions, including the adoption of smart grids, digitalisation, and grid enhancement technologies, should be considered. In addition, ways of increasing private and public sector financing should be explored to meet the challenge of the massive investments that are needed in this sector in the coming decades; methodologies and scenarios for anticipating future needs constitute an essential element in ensuring a cost-effective approach to the development of grids. Globally, electricity grids will need to increase by more than 20 % in length by 2030 to meet energy and climate pledges in time and in full, which requires annual average investment in grids to rise to US$600 billion from around US$300 billion today, according to the International Energy Agency. Concerning supply chain risks, the need for resilient and effective grid manufacturing supply chains is recognised by the Net-Zero Industry Act, which designates grid technologies as strategic net-zero technologies. Recognising the critical importance of grids for the EU energy union and economy as a whole, the European Commission came forward with an EU action plan for grids in November 2023, while a new European grids package is expected in the coming months. Parliament's Committee on Industry, Research and Energy adopted an own-initiative report on the subject on 13 May 2025. Source : © European Union, 2025 - EP Read more
