Brussels (Brussels Morning Newspaper) – The European Union intends to intensify efforts to expand cross-border energy infrastructure, with the goal of reducing costly bottlenecks and speeding up the development of new power grids, according to draft documents obtained by Reuters.
As reported, EU countries have made significant investments in low-cost renewable energy; however, grid upgrades and expansion have not kept pace. Consequently, wind and solar generation is being more frequently curtailed to prevent overloading the networks, which leads to wasted electricity and higher costs for consumers.
The European Commission plans to create a centralized EU strategy for cross-border electricity infrastructure and will collaborate with grid operators and companies to initiate projects, as outlined in the draft proposal set to be published on Wednesday.
What cost savings does the Commission expect from new grids?
Europe’s high energy prices, often two to three times higher than those in China and the U.S., are partly due to underinvestment in the grid. Industries frequently complain that these expensive bills harm their competitiveness.
“Grid development can deliver real added value and cost savings for Europeans,”
the draft document stated that investing five billion euros in grids would reduce the total power system cost by eight billion euros.
The draft warns that if no action is taken, the EU might need to limit renewable power generation by up to 310 terawatt hours (TWh) in 2040 due to grid limitations. Official data indicate that EU households used 691 TWh of electricity in 2023.
How will amended laws reshape approval processes for grid projects?
A second draft of the EU legal proposal indicates that the Commission plans to amend EU law to allow governments to exempt grid projects from environmental impact assessments, citing lengthy delays that could halt projects for years. Small-scale renewable and storage projects will no longer need environmental permits.
The proposal proposes shorter approval deadlines for grid-related permits, such as a six-month limit for new electric vehicle charging stations. If authorities do not respond within this period, permits will be automatically granted.
How does the PCI framework influence cross-border energy planning?
The European Union established the Projects of Common Interest (PCI) framework under the 2013 TEN-E Regulation to prioritize cross-border energy infrastructure linking EU countries’ systems, accelerating permitting and funding via the Connecting Europe Facility (CEF). PCI lists have been updated biennially since 2013, with the first lists focusing on electricity and gas interconnectors to enhance market integration and security of supply.
