Europe
May 15, 2025

No Modern Grids, No Transition? EU Rolls Out Record Investment to Prevent Energy Collapse

With a public consultation open until July 8, 2025, the European Commission is launching an unprecedented plan to mobilize €584 billion in investments to modernize Europe’s power grids. “We are still facing a 32 GW cross-border capacity gap and permitting processes that can take up to 17 years,” warns Eusebiu-Valentin Stamate, in an exclusive conversation with the portal.
By Emilia Lardizabal

By Emilia Lardizabal

May 15, 2025
grid

The Commission has taken a decisive step to ensure that the energy transition does not stall due to infrastructure bottlenecks. By opening the public consultation for the European Grids Package, Brussels activates a legislative and policy initiative designed to transform electricity networks into the backbone of decarbonization, industrial electrification, and energy security.

“These are no longer isolated technical issues; they directly impact market access, investor confidence, and Europe’s ability to meet growing electricity demand with low-carbon supply,” says Eusebiu-Valentin Stamate, Policy Analyst at Issue Monitoring, in an interview with Strategic Energy Europe. He emphasizes that without an efficient grid system, the deployment of renewable energy will continue to face delays and climate targets will remain out of reach.

The package, expected to be adopted by the end of 2025, is a central part of both the Clean Industrial Deal and the Action Plan for Affordable Energy, two key strategic initiatives of the European Union.

Historic Investment and Faster Permitting

The scale of the planned investments is unprecedented. The European Commission estimates that €584 billion will be needed for grid modernization by 2030. But beyond the financial volume, the Grids Package aims to tackle one of the sector’s biggest obstacles: lengthy and complex permitting procedures.

Today, obtaining permits for transmission projects can take between 14 and 17 years, delaying not only the connection of new solar and wind farms but also the electrification of key industries.

There’s still a 32 GW cross-border capacity gap, and these delays impact the integration of renewable energy, industrial electrification, and the deployment of flexibility solutions. They also drive up system costs for end-users,” explains Stamate.

He stresses that “simplifying permitting processes is an urgent necessity” and warns that without these reforms, clean energy deployment won’t advance at the pace required to meet rising demand.

New Rules for Cross-Border Projects

A key element of the package is the introduction of new cost-sharing rules for cross-border interconnection projects. This initiative aims to foster stronger cooperation between Member States and eliminate the financial disputes that frequently delay the construction of critical infrastructure.

European integration cannot move forward without addressing grid interconnection bottlenecks,” Stamate cautions. Enhanced coordination will be crucial to increase cross-border electricity flows, particularly in a context of growing demand and increasingly unpredictable consumption peaks.

Lessons from Crisis: The Iberian Blackout

The massive blackout that hit the Iberian Peninsula and parts of France in April 2025 served as a stark reminder of Europe’s grid vulnerabilities. Although a total system collapse was avoided thanks to existing interconnectors, the event exposed the structural weaknesses of the EU’s power networks.

This incident was a harsh wake-up call about how fragile the system is in the face of extreme events,” says Stamate. Since then, political discussions have intensified around reinforcing EU funding instruments, particularly the Connecting Europe Facility for Energy, and encouraging Member States to redirect national funds toward upgrading distribution grids—essential for integrating decentralized renewable generation.

Digitalization and Innovation: The Key to Expanding Capacity

The Grids Package also places a strong focus on the digitalization of grids and the adoption of innovative technologies. The European Commission wants operators to implement smart management tools that increase grid capacity without the need for costly and time-consuming physical infrastructure expansions.

Digitalization will help optimize the use of existing grids and enhance system resilience in the face of failures and crises,” Stamate explains. Technologies such as artificial intelligence, automated operations, and advanced demand forecasting systems are seen as strategic tools to manage an increasingly complex and decentralized power system.

A Unique Opportunity to Shape Future Regulations

With the consultation open until July 8, 2025, the European Commission is calling on all energy stakeholders—from renewable energy developers and grid operators to equipment manufacturers and large industrial consumers—to actively participate.

This is the time to get involved and ensure that future regulations reflect the sector’s real-world needs,” Stamate urges. Broad participation will be critical to adjusting the proposals in line with actual investment requirements, operational challenges, and technology deployment.

As Stamate concludes, “The power grid will become the circulatory system of Europe’s new economy. Without a strong and modern network, there will be no energy transition and no industrial competitiveness.

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