The European Commission has presented the EU Grids Package, a set of legislative and policy measures aimed at modernising and expanding Europe’s electricity infrastructure. The Package seeks to address long-standing bottlenecks in grid development, improve permitting processes, and support investment in both transmission and distribution networks. Its goal is to create a more integrated, resilient, and future-proof energy system capable of supporting high shares of wind and other renewables.
Europe faces significant grid constraints that are slowing the deployment of renewable energy. Wind currently accounts for 20% of electricity consumption in the EU, but new projects are often delayed due to permitting and grid connection limitations. Around 500 GW of wind projects are currently awaiting grid approval. The Package introduces a “first ready, first served” approach to prioritise viable projects, replacing the current “first come, first served” system, and aims to filter out speculative developments.
The Package also sets out enhanced top-down planning, with the European Commission creating forward-looking scenarios for the Ten-Year Network Development Plan, aligned with 2040 and 2050 climate objectives. ENTSO-E will produce an infrastructure needs identification report to highlight current and future gaps in grid capacity.
Investment support is central to the initiative. The EU plans to increase public funding for energy infrastructure through the Connecting Europe Facility and launch a Clean Energy Investment Strategy in 2026 to mobilise private finance. Measures to strengthen Europe’s grid equipment manufacturing base are included, alongside proposals to accelerate permitting for repowered wind farms, storage units, hybrid plants, and offshore grids.
Digitalisation of permitting is another focus, with Member States encouraged to create single digital portals for renewable, storage, and grid projects. The Package also addresses cross-border grids, offshore hubs, and key interconnectors, supporting a more interconnected European energy system.
The EU Grids Package provides a framework to reduce bottlenecks, boost investment, and prepare Europe’s grid for a renewable-dominated energy system, but implementation by Member States will be critical to its success.
