EU Action Plan

for Grids

November 2023
#EnergyUnion

As the backbone of our energy system, electricity grids are critical for the clean
energy transition. Europe has the most interconnected and resilient
electricity grid in the world bringing electricity to consumers every minute,
hour and day of the year. However, for the EU to bring renewable electricity to
its consumers and empower them to produce it, electricity grids need to
develop further and faster. In the next seven years, we should double
our cross-border transmission infrastructure.

An accelerated energy transition requires a shift towards a decentralised,

digitalised, integrated and flexible system, with the expansion and
upgrade of both the transmission and distribution grids. Investing in grids
today will help to reduce greenhouse gas emissions and energy costs for
consumers: cross-border energy infrastructure projects can decrease
generation costs by €9 billion annually until 2040.

93 GW of cross-border transmission capacity 40% of Europe’s distribution grids are over

currently in Europe 40 years old
An additional 23 GW being incorporated by 2025, Connection requests at distribution level increased
a further 64 GW is needed by 2030 on average by 19% in a single year in 2021

Rapid implementation of the 85 electricity In this decade alone, €584 billion in investments
transmission, storage and smart grid cross- are necessary for the electricity grids, with a
border projects included in the 2023 PCI list is key substantial part needed in distribution grids
A grids action plan to address the missing
links of the clean energy transition

Accelerating the implementation of Improving access to finance by increasing

Projects of Common Interest through visibility on EU funding programmes
political steering, reinforced monitoring and for smart grids and modernisation of
more project proposals distribution grids

Improving the long-term planning of Stimulating faster permitting for

grids to accommodate more renewables grids deployment by providing technical
and electrified demand in the energy support for authorities and guidance on
system better engaging stakeholders and
communities
Introducing regulatory incentives
through anticipatory investments and Improving grid supply chains by
offshore cross-border cost sharing harmonising industry manufacturing
requirements
Incentivising a better usage of the
grids with enhanced transparency and
improved network tariffs for more smart
grids network efficiency and innovative
technologies
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© European Union, 2023

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