Image: 123RF
MEPs have called on Europe’s member states for modernisation and expansion of their transmission and distribution grids among other actions.
In a resolution adopted on 19 June the MEPs indicate the need for more coordination and resilience in European electricity grids, as they call on the Commission and EU organisations to implement the EU grids action plan introduced in November 2023 among other legislation.
Citing the Iberian Peninsula blackout as a critical example of the need to boost grid resilience, the MEPs posit the electricity grids as “the backbone of the EU energy system” and point to the completion of the EU’s energy market integration as saving up to €40 billion ($46 billion) annually
The MEPs highlight the need for better integration of national renewable energy sources to ensure a resilient, decarbonised electricity system.
Also of interest
EU Energy Projects Podcast: Digital Transformation of Europe’s Energy Sector with Max Lemke
Financing grid expansion: Overhead versus the ATT side-step
They also highlight the need for significant investment in the grids, totalling an estimated €584 billion ($672 billion) by 2030 with about two-thirds in distribution and one third in transmission.
Member states are called on to simplify access to the EU funds for grid operators and the Commission should propose a dedicated funding instrument, such as one based on revenues from the market-based emission reduction scheme, to allow member states to support decentralised and innovative grid projects with a clear EU added value.
There also is the need for regulatory frameworks to attract private investment and ensure cost-reflective tariffs, in addition to public funding mechanisms.
Among other issues addressed is interconnections and the failure of some member states to achieve their interconnection targets and the Commission is called upon to propose by June 2026 at the latest a binding target for 2036.
Permitting is another topical issue and a call is made for a technical assistance and information exchange instrument within the forthcoming grids package to support the addressing of permitting bottlenecks and acceleration of project approvals through the sharing of best practices and cross-border coordination.
“The Iberian blackout was a painful demonstration of how vulnerable our grids remain. It was a reminder that Europe’s energy transition will fail unless we invest just as strategically in infrastructure as in renewables,” said lead MEP Anna Sturgkh from Austria on the resolution.
“Now the Commission must act decisively to prioritise planning and coordination on grids and storage – or we will keep lurching from one crisis to the next.”
Guidance on anticipatory investments
Earlier in June the European Commission issued a guidance on anticipatory investments for the grids for EU countries and national regulatory authorities, with recommendations in three main areas – network planning, regulatory scrutiny and costs and incentives.
Network planning should be based on robust scenarios of future demand and generation taking account of energy and climate strategies, including the national plans.
Regulatory scrutiny of network development is essential to ensure that investments are cost effective and regulatory scrutiny of anticipatory investments should mainly be carried out in the planning phase, with clear allocation of risk related to future utilisation of the asset set up well in advance.
With regard to costs, the use of state guarantees or public budget could cover the additional costs resulting from measures to accelerate decarbonisation and market integration, including for anticipatory investments.
With the MEP resolution and the anticipatory investment guidance, the next step from the Commission perspective is the proposal of a European grids package due by the end of 2025.
Originally published on Enlit.World.
