By Andrzej Ceglarz, Director of Energy Systems at the Renewables Grid Initiative (RGI)
The European Grid Package, currently open for public consultation, is viewed by the Renewables Grid Initiative (RGI) as a logical progression from the EU Grid Action Plan, which was introduced in 2023. Over the last two years, electricity grids have garnered significant political attention throughout the EU. This increased focus underscores their vital role in Europe’s economic resilience, energy security, and climate objectives, a point that has been consistently highlighted in both the Letta and Draghi reports.
While formal proposals are still pending, the current consultation outlines the direction for updating key regulatory frameworks. The topics addressed mirror those already covered in the Grid Action Plan, offering a consistent and comprehensive response to the challenges of expanding and modernising Europe’s electricity grids.
Obstacles and priorities in energy planning
A central goal of the package is to accelerate investment and planning for electricity infrastructure. However, energy systems and infrastructure requirements differ significantly across Member States, influenced by geography, available resources, flexibility options, and regional demand. These differences require planning approaches tailored to local contexts.
Persistent scarcity, including in supply chains, has become a structural issue. As a result, system planning must prioritise optimisation over simple cost reduction. System-level energy efficiency should be fully integrated into planning processes and scenario development, contributing to energy sovereignty, cost savings, and climate objectives.
Direct electrification based on renewables remains the most cost- and resource-efficient pathway to decarbonise energy demand. A more detailed and data-driven understanding of demand would unlock a range of benefits that are not yet fully captured in current planning models.
Regional cooperation: from intent to execution
The package also aims to strengthen joint grid planning across EU Member States, yet effective cooperation must go beyond political statements. Legal and regulatory harmonisation across jurisdictions and governance levels is essential to realise meaningful regional coordination.
National Energy and Climate Plans (NECPs) must be aligned with network development strategies. Similarly, spatial planning processes and biodiversity objectives — including targets set in international agreements and forthcoming Nature Restoration Plans — should be systematically integrated into infrastructure planning.
Regional coordination becomes particularly complex where national energy policies diverge, whether around nuclear energy, gas, or renewables. Nonetheless, greater political alignment and mutual trust are prerequisites for success.
Transparent, participatory planning processes enhance the quality and credibility of grid development. Open-source modelling tools and accessible databases can support the alignment of scenarios and foster greater public and institutional engagement.
Structural barriers to renewables and the role of flexibility
Although challenges to renewable energy integration vary across Member States, permitting remains one of the most widely cited bottlenecks. Administrative complexity and insufficient capacity in permitting authorities often delay projects and undermine investor confidence.
Beyond permitting, deeper structural issues persist: fragmented institutional responsibilities, inconsistent implementation of EU and national regulations, limited political continuity, and, in some cases, strong public narratives opposing grid and renewable energy infrastructure.
As electricity systems evolve, grid operators must integrate flexibility resources into their operational models. Solutions such as storage, demand response, and voltage control will play a growing role in maintaining system stability and enabling higher shares of variable renewable energy.
The investment gap: €584 billion by 2030, up to €2.29 trillion by 2050
The European Commission estimates that €584 billion in grid investment is needed by 2030, while the European Court of Auditors projects between €1.99 trillion and €2.29 trillion by 2050. Current investment trends fall short of these targets, held back by several economic and regulatory headwinds.
Rising capital costs, increased project complexity, and insufficient demand growth are key barriers. Supply chain constraints, climate-related risks, and geopolitical uncertainties further complicate grid development, while simultaneously underscoring the urgency of action.
Public consultation: a critical tool for legitimacy
The Commission’s decision to open the package to public consultation, under the Better Regulation process, represents an important step toward transparent and participatory policy design.
The quality and success of the European Grid Package will depend on how effectively it incorporates technical expertise, stakeholder input, and political resolve. With the right level of ambition and coordination, this package can lay the groundwork for a secure, modern, and decarbonised European energy system.
Once the Package is adopted, it will be time for Member States, regulators, and grid operators to step up – not only to meet the 2030, 2040 and 2050 targets, but to deliver a grid that serves the people, the climate, and the economy of Europe. This will require unprecedented collaboration across governance levels, industry, and civil society to strengthen the processes from planning to implementation. Delivering a decarbonised and optimised electricity system in the future must be done, however, with citizens and communities hosting the infrastructure. Meaningful stakeholder engagement, social acceptance, and environmental responsibility are not optional add-ons – they are the foundation for a just and successful energy transition.
