The EC has proposed an ‘Action Plan’ to help accelerate the roll-out of electricity grids across the continent, calculating €584bn in investment will be needed.
The proposal from the European Commission said electricity consumption was expected to rise 60% by 2030, precipitating the need for investment. The €584bn figure had been calculated, it said, based on the need to overhaul distribution grids that are more than 40 years old and with cross-border transmission set to double in the next seven years.
“The Action Plan aims to address the main challenges in expanding, digitalising and better using EU electricity transmission and distribution grids,” the EC said. “It identifies concrete and tailor-made actions to help unlock the needed investment to get European electricity grids up to speed. The actions focus on implementation and swift delivery to make a difference in time for our 2030 objectives.”
It added: “Electricity consumption in the EU is expected to increase by around 60% between now and 2030. 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 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.”
‘Projects of common interest’
The new plan set out several actions. The first, said the EC, was to prioritise the implementation of ‘Projects of common interest’ and ‘Projects of mutual interest’ already identified with the concerned member states and project promoters. In addition, the EC would provide guidance on the designation of dedicated infrastructure areas for grid projects necessary to integrate renewables.
The EC made reference to its earlier intention for the continent to end imports of Russian fossil fuels, with an eventual 45% renewable energy share by the end of the decade – as covered before on Expert Investor.
In March 2022, the EC announced the launch of REPowerEU, which sought to achieve this end. As was announced then, the plan additionally looked to tackle rising energy costs across Europe and replenish gas stocks for winter 2022. It said REPowerEU would seek to diversify gas supplies, speed up the roll-out of renewable gasses, and replace gas in heating and power generation. The EC predicted this could reduce EU demand for Russian gas by two-thirds before the end of 2022.
