The European Union is preparing to strengthen efforts to develop cross-border energy infrastructure in a bid to eliminate costly grid bottlenecks and accelerate the roll-out of new power networks, according to draft proposals due to be published on Wednesday.
Although member states have invested substantially in low-cost renewable energy, grid expansion has lagged far behind. As a result, growing volumes of wind and solar power are being curtailed to prevent network overloads — wasting clean electricity and driving up costs for consumers.
To tackle this, the European Commission intends to draw up a centralised EU plan for cross-border electricity infrastructure and work closely with grid operators and industry to expedite critical projects. The draft notes that insufficient grid investment has contributed to persistently high energy prices across Europe — often two to three times higher than in China or the United States — a long-standing concern for industries that warn soaring bills are eroding their global competitiveness.
“Grid development can deliver real added value and cost savings for Europeans,” the document states, suggesting that an investment of €5 billion in network upgrades could reduce overall power system costs by €8 billion. Without urgent action, the EU could be forced to curtail as much as 310 terawatt hours (TWh) of renewable electricity by 2040 due to grid constraints. For context, EU households consumed 691 TWh in 2023.
A separate draft legal proposal indicates that the Commission will push for changes to EU law allowing governments to exempt certain grid projects from environmental impact assessments, citing lengthy delays that can stall infrastructure for years. Small-scale renewable and energy-storage projects would also be exempt from environmental permitting requirements.
The proposals set stricter deadlines for authorities to issue permits for grid-related developments, including a six-month deadline for new electric-vehicle charging stations. Under the plan, if authorities fail to respond within the allotted time, permits would be automatically approved — a measure aimed at cutting through lengthy bureaucratic delays that persist in several member states.
The Commission declined to comment on the draft proposals. Any legislative changes would require approval from EU governments and the European Parliament.
