The European Union's Energy Commissioner, Kadri Simson, unveiled on Tuesday a comprehensive action plan aimed at revamping the bloc's four-decade-old electricity infrastructure to meet the escalating demands of the energy transition driven by renewable sources.
The plan encompasses a range of initiatives, including the electrification of transport, integration of new offshore wind farms, and the expansion of solar plants. These projects are pivotal to connecting to the EU's power market and aligning with the bloc's ambitious renewable energy goals.
Anticipating a 60% surge in EU power demand from the current year until 2030, the Commission envisions accommodating increased usage in industry, home heating, electric vehicles, and hydrogen production. The plan emphasizes the need for networks to adapt to a decentralized, digitalized, and flexible system, incorporating millions of rooftop solar panels and local energy communities that share resources.
The Commission underscores the importance of doubling cross-border infrastructure between member states over the next seven years, estimating a substantial investment of 584 billion euros ($637 billion) for the proposed upgrades. The plan outlines an increase of 64 gigawatts (GW) in cross-border transmission by 2030, with an initial target of adding 23 GW by 2025.
Simson emphasized the significance of having the right infrastructure in place, referring to it as the “last piece of the puzzle.” The Commission introduced 166 new projects of common interest (PCI), primarily in electricity and hydrogen, with inclusion on the list serving as a prerequisite for projects to seek EU funding in 2024.
Among these projects, half will focus on modernizing and improving power networks, incorporating new energy storage facilities, and covering offshore ventures in the North Seas, Baltic Sea, and the Atlantic. The plan addresses concerns about lengthy project timelines, emphasizing the need for collaboration and standardization in the industry.
Implementation of the grid action plan is slated to commence in 18 months, according to EU officials. Industry response to the plan has been positive, with Leonhard Birnbaum, President of industry group Eurelectric, calling it an “excellent first step” while noting the need for increased climate adaptation in the face of more frequent extreme weather events.
