In January 2025, the European Commission announced it would present a European grids package as part of its competitiveness compass for the EU. The intention of building on the 2023 action plan for grids was reiterated in February 2025, in the Clean Industrial Deal and action plan for affordable energy; and most recently as part of the 2026 Commission work programme adopted in October 2025. The Commission is expected to present the grids package on 10 December 2025. Energy prices in the EU remain higher and more volatile than those of its trading partners, reflecting Europe's dependency on imported fossil fuels and the investment uncertainty caused by recent geopolitical shocks. These pressures are intensified by structural inefficiencies in the energy system: insufficient interconnections, ageing grids, long and inconsistent permitting times, and limited support for distribution-level and digital infrastructure – all of which prevent the EU from fully exploiting its renewable generation potential. Despite progress made on cross-border infrastructure projects with the introduction of the Trans-European Networks for Energy (TEN-E) framework, large-scale investments to support grid expansion are still needed. In terms of implementation, investment is hampered by complex and fragmented grid planning, requiring heavy coordination across different strategies and stakeholders, as well lengthy permitting processes. In this regard, stakeholder groups call for simpler, clearer and more coordinated governance to ensure cross-border and cross-sector integration. Source : © European Union, 2025 - EP Read more