The European Commission has unveiled plans to modernize and expand the EU’s energy infrastructure, aiming to lower electricity costs, integrate more renewable energy, and reduce dependence on Russian fossil fuels.

The European Grids Package and the Energy Highways initiative will improve cross-border electricity flows, accelerate electrification, and ensure a secure and reliable energy supply across Member States. The initiatives also introduce a new European-level approach to planning, streamlining permits and promoting fair cost-sharing for infrastructure projects.

Eight key “Energy Highways” projects have been identified as priorities to address urgent infrastructure needs. The Commission will fast-track their implementation through enhanced coordination with Member States and regional energy coordinators.

The EU estimates that €1.2 trillion will be needed in electricity grids by 2040, including €730 billion for distribution networks and €240 billion for hydrogen infrastructure. To support this, the Commission has proposed a nearly five-fold increase in the Connecting Europe Facility Energy budget.

By maximizing the use of existing grids and speeding up new projects, the initiatives are expected to reduce system costs, increase cross-border electricity trade, and strengthen the EU’s energy resilience.

Industry reaction

The announcement has been welcomed by the energy sector. Giles Dickson, CEO of WindEurope, said: “The grids are vital to Europe’s energy security and competitiveness. A renewables-based energy system will be much cheaper for Europe – even when you factor in the additional costs for grids, storage, and electrification. But you can’t have more renewable electricity without more grids. The EU Grids Package will enable faster permitting, better planning and increased investment certainty.”