
The European Commission has announced a major plan to modernise the EU’s electricity grid, aiming to lower energy bills, boost supply security, and better integrate renewable energy across member states. The initiative, part of the new European Grids Package, targets long-standing bottlenecks in the power system, faster cross-border connections, and more efficient transmission and distribution networks.
Officials say the plan will allow electricity, particularly from renewable sources, to flow more efficiently across the bloc, helping to reduce costs for households and businesses alike. Many national grids were originally designed for a different energy era and currently struggle to transmit clean energy across borders, limiting the uptake of wind, solar, and other renewables.
To address these challenges, the Commission proposes fast-tracking approvals for grid and storage infrastructure projects, simplifying permitting processes, and establishing fairer cost-sharing rules among member states for cross-border connections. The plan also includes measures to strengthen coordination among regulators, ensure timely investment, and improve overall resilience of the electricity system.
Political support for the initiative is strong. Members of the European Parliament and relevant committees have repeatedly called for investment in grid infrastructure and clearer legislation to support integration of renewable energy and improve electricity market efficiency. Officials say the plan aligns with broader EU goals of clean energy transition and energy independence, reducing reliance on fossil fuel imports that have historically driven price volatility.
The Commission estimates that, if implemented successfully, smarter and better-connected grids could significantly reduce overall energy system costs, leading to tangible savings on electricity bills for consumers and stabilising energy supply for businesses. However, the success of the initiative will depend on rapid implementation, agreement on funding among member states, and cooperation from regulators and energy companies.
The legislative proposals now move to the European Parliament and Council for approval under the EU’s standard law-making process. Once adopted, the plan is expected to transform Europe’s electricity network, enabling a higher share of renewables, improving cross-border power flows, and helping citizens and industries benefit from lower energy costs and a more resilient power system.
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