The European Commission on Wednesday launched its European Grids Package, a set of proposals aimed at upgrading the continent’s electricity and hydrogen networks and “unleash its full potential” as the energy transition accelerates.
The Commission said the package, together with a new Energy Highways initiative, is designed to improve the flow of energy across all EU member states by integrating cheaper clean power and speeding up electrification. The measures are intended to support lower energy prices by improving system efficiency.
Under the plan, the EU proposes a more robust process for cross-border energy infrastructure planning, faster permitting procedures and mechanisms to improve how costs and benefits are shared among participating countries. It also aims to strengthen the resilience and security of cross-border grids. “Taken altogether, these proposals will support the development of renewables and clean energy in the EU energy system,” the Commission said.
The Energy Highways initiative identifies eight major bottlenecks considered the EU’s most urgent infrastructure priorities. Among them is the Bornholm Energy Island project, which seeks to create an offshore interconnector hub between Denmark and Germany.
The Commission estimates that Europe will require €1.2 trillion in electricity grid investment by 2040—€730 billion for distribution networks and €240 billion for hydrogen infrastructure.
The package also introduces a coordinated EU-wide approach to cross-border infrastructure planning to ensure alignment with future energy goals. It proposes additional financing options, including cost-sharing arrangements and the use of special purpose vehicles.
