European Commission unveils plan to modernise the EU power grid

The European Commission (EC) today unveiled a plan to modernise the power grid, aiming to prepare ageing infrastructure in EU countries for the growing role of renewable energy sources. Energy Commissioner Kadri Simson announced the plan today. It envisages that 584 billion euros (CZK 14.2 trillion) will need to be invested over the next seven years. Infrastructure in some member states is more than 40 years old.

Electrifying transport, alongside connecting new wind farms and solar installations, is among the many projects planned for the coming years. The aim is to properly interconnect the electricity market across the Union. The Commission expects electricity demand in the EU to rise by around 60 percent between this year and 2030. Industry, household heating, cars and some hydrogen projects will all need more electricity.

“Grids will also have to integrate a large share of variable renewable energy,” the Commission said.

“Grids must adapt to a more decentralised, digitalised and flexible system, with millions of rooftop solar panels and local energy communities sharing resources,” it added.

The Commission said cross-border infrastructure between member states should double within seven years. This means increasing the transmission capacity of cross-border lines by 64 GW by 2030, with an initial target of adding 23 GW by 2025. The 27-member European Union has 93 GW of cross-border interconnections.

The Commission also announced 166 new projects of common interest, most of them in electricity and hydrogen. Inclusion on the list is a prerequisite for projects to apply for EU funding next year. “Having the right infrastructure is the last piece of the puzzle,” Simson told reporters.

Half of the projects will modernise and better interconnect electricity grids, while adding new energy storage facilities. The list also includes 12 offshore projects in and around the North Sea, the Baltic Sea and the Atlantic Ocean.

“We have had very worrying experiences with processes that have been going on for ten years,” an EU official quoted by Reuters said.

“Someone has to build the things we keep talking about and bring stakeholders together. Standardisation is a good topic if there is a good understanding—that way, 2500 electricity distribution companies do not reinvent the wheel one by one,” the official added. The grid action plan should begin to be implemented in 18 months, they said.

Eurelectric industry group president Leonhard Birnbaum called the plan an excellent first step. “However, there is still room for improvement. European electricity grids face a growing number of threats from increasingly frequent extreme weather events. This action plan should therefore recognise the need for greater climate adaptation,” Birnbaum said in a statement.