EU will step in to unblock power grid bottlenecks, draft shows

EU countries have invested heavily in low-cost renewable energy, but grid upgrades and expansion have failed to match this. As a result, wind and solar output is increasingly curtailed to avoid overloading networks, wasting electricity and adding costs for consumers.

To address this, the European Commission will develop a centralised EU plan for cross-border electricity infrastructure and work with grid operators and companies to get projects off the ground, according to the draft proposal, due for publication on Wednesday.

A lack of grid investment has contributed to Europe's high energy prices, which are two to three times those in China and the U.S., a frequent complaint from industries that say steep bills undermine competitiveness.

"Grid development can deliver real added value and cost savings for Europeans," the draft document said. It said investing five billion euros in grids would shave eight billion euros off the overall cost of the power system.

Outdated Networks Drive Up Energy Bills 

Failure to act could see the EU forced to curtail up to 310 terawatt hours (TWh) of renewable power generation in 2040 because of grid constraints, the draft said. For comparison, EU households consumed 691 TWh of electricity in 2023, official data show.

A second draft EU legal proposal showed the Commission will propose changing EU law to let governments exempt grid projects from requiring environmental impact assessments, citing long delays that can stall projects for years. Small-scale renewable and storage projects would no longer require environmental permits.

A Commission spokesperson declined to comment on the draft. Any changes to EU laws would require approval from EU countries and lawmakers.

The proposal also sets shorter deadlines for authorities to approve grid-related permits, including a six-month limit for new electric vehicle charging stations.

If authorities fail to respond within the timeframe, permits would be automatically granted - a move designed to slash the years-long delays in some EU countries.