Eurelectric flags urgency to accelerate grid expansion and digitalisation to meet green goals

Eurelectric’s Power Barometer 2023 points to positive trends following the peak of the energy crisis but the need to urgently accelerate infrastructure development.

The annual Power Barometer, which maps key energy sector developments in Europe, finds that while the peak of the energy crisis may be over, the challenges to the region’s decarbonisation and security of supply are not.

While homegrown clean and renewable electrification remains the answer, higher investments and upgraded infrastructure are urgently needed to enable the projected tripling in electrification rates by 2050.

In particular unprecedented investments for grid expansion and digitalisation are needed, up 84% from now until 2050 compared with the average 7.5% since 2020.

Have you read?
Europe risks being seen as ‘weak’ in new energy balance of power says Eurelectric’s Ruby
Smart metering progresses in Europe but 11 countries have barely started
How Enedis is accelerating regional development in Hauts-de-France

“We need more lines, more digitalisation and more climate resilience to get our grids fit for net zero,” says Eurelectric’s Secretary, General Kristian Ruby, on the Power Barometer 2023 findings.

“This requires a change in the regulatory approach. Grid operators must be allowed to make anticipatory investments so we can start preparing for higher electrification.”

The need for anticipatory investments as well as planning was a key finding of Eurelectric’s electricity market design study, which was released earlier in the month.

In that study, Eurelectric proposed inter alia that the distribution networks should be planned at least 5 years ahead, with the option of reaching 10 years, and that regulators should adopt an approach that takes into account both capex and opex.

Infrastructure requirements

Some other findings in the Power Barometer 2023 are that the decarbonisation of the transport sector is taking off with electric passenger cars sales growing by 21% from 2021 but should be reaching 58% to meet the 2030 decarbonisation targets. 

Similarly with electric buses, rates need to increase to 40% by 2030, up from less than 14% in 2022.

To accompany these the number of public chargers needs to rise from 480,000 currently to around 3.5 million by 2030.

Likewise the heat pump capacity needs to increase by a factor of almost three from 20 million to 55 million by 2030, while the generation capacity must almost double to reach 2,000GW and the storage capacity almost quadruple to 191GW.

The Power Barometer also notes the disparities in smart metering that must be overcome, particularly in central and eastern Europe where there has been less progress.

Overall the smart meter penetration is about 56% as of 2022, up from 48% in 2020.

Recommendations for a power sector fit for net zero

Based on the findings of the Power Barometer, Eurelectric has identified security of supply, future-proof distribution grids and a fair energy transition for all parties, i.e. suppliers, customers and member states, as policy priorities, with a set of recommendations for each.

For security of supply, among these are facilitating permitting for generation and other infrastructure and ensuring there are investment signals for the needed assets and technologies.

For the distribution grids, recommendations include formulating a modern mandate for regulators, modernising tariffs and incentivising anticipatory investments.

For fairness, proportionality should be ensured in political interventions and support measures should be targeted to vulnerable customers.