The European Commission has unveiled new recommendations to accelerate the uptake of innovative renewable energy technologies, enhance electricity infrastructure, and modernise network tariffs, aligned with its ambitious climate target to reduce net greenhouse gas emissions by 90% by 2040. This initiative forms part of a comprehensive package aimed at strengthening industrial competitiveness, energy security, and energy affordability for European citizens.

Innovative renewables: a step towards climate neutrality

The Commission calls on Member States to facilitate the integration of emerging technologies such as floating offshore wind, ocean energy, and innovative deployment methods like floating solar and agrisolar. It proposes clear regulatory frameworks and tailored financial support schemes to close the cost gap with conventional technologies. Continued research and innovation, alongside robust legal certainty, are emphasised to accelerate deployment and maximise environmental benefits.

Grid and storage infrastructure: zoning and streamlining to speed up deployment

The expected increase in renewable energy generation and electricity demand requires urgent expansion and reinforcement of grids combined with rapid deployment of storage solutions. The Commission recommends designating specific zones for grid and storage infrastructure, allowing projects in these areas to benefit from exemptions on certain environmental assessments, thereby simplifying administrative procedures and lowering costs.

Future-proof network charges: flexibility and efficiency to reduce costs

Modernising the energy system requires network charges that reflect the true needs of the electricity system and encourage efficient, flexible use of existing infrastructure. The Commission also suggests tariff models that incentivise consumption during periods of low demand or high renewable generation, promoting active participation from consumers and energy-intensive users while supporting energy storage integration.

A framework for an affordable and sustainable energy future

These recommendations are part of a broader strategy to achieve the EU’s 90% net greenhouse gas emissions reduction target by 2040 — a key milestone on the path to climate neutrality by 2050. European Commission President Ursula von der Leyen emphasised, “Today we show that we stand firmly by our commitment to decarbonise European economy by 2050. The goal is clear, the journey is pragmatic and realistic.”

The package complements the Affordable Energy Action Plan, designed to lower electricity costs for households and industry, with estimated savings reaching €260 billion annually by 2040. It also includes new guidelines on investment incentives, tax measures, and state aid frameworks to accelerate the clean industrial transition.

Political backing and next legislative steps

The Commission has submitted these proposals to the European Parliament and the Council for discussion and adoption. The legislative effort builds on extensive consultations with Member States, civil society, scientific experts, and the private sector, promoting a flexible approach that allows countries to tailor their national strategies while keeping Europe on track for a competitive, fair, and climate-neutral future.

Executive Vice-President Teresa Ribera stated, “We are not choosing between the economy and the green agenda, we are choosing both. Europe reaffirms its commitment to a fair, ambitious, and competitive green transition.”

WindEurope statements

The wind industry has stressed that new targets alone will not automatically lead to more wind farms. WindEurope warns that national governments must deliver real volumes of wind energy. Four priorities stand out: First, permitting – Member States must rigorously implement the updated Renewable Energy Directive (REDIII), including overriding public interest measures and shorter permitting deadlines. Germany has already done so, enabling over 14 GW of new onshore wind in 2024 alone — seven times more than five years ago. There is no excuse for further delays. Second, grids – expanding and optimising Europe’s electricity network is essential to meeting the 2040 target. A stronger grid reduces curtailment and electricity costs while supporting supply security.

Third, electrification – governments must remove barriers to direct electrification, which is the most efficient and cost-effective route to decarbonisation. Electrification rates in Europe are stagnating, while the US and China are advancing rapidly. Smart taxation and targeted state aid are needed to incentivise both supply and demand. Finally, auction design – governments should reduce investment risk with a steady pipeline of Contracts for Difference (CfDs). CfDs improve capital costs and revenue visibility.

WindEurope has proposed a New Deal for Offshore Wind: if governments commit to auctioning 100 GW of offshore CfDs between 2031 and 2040, the industry will deliver a 30% cut in the levelised cost of offshore wind. However, CfDs should not be limited to offshore — onshore wind also benefits from the predictability they offer.