On Tuesday, 28 November, the European Commission adopted its action plan for grids and announced a new list of 166 cross-border energy infrastructure projects within the scope of the ‘European Green Deal’.
Action plan for grids
This action plan identifies several interdependent measures that can be implemented over the next 18 months to address the challenges related to extending, digitalising, and improving the use of the EU’s electricity transmission and distribution networks.
The plan is also in line with the objectives set out in the European Network of Transmission System Operators for Electricity’s (ENTSO-E’s) Ten-Year Network Development Plan (TYNDP), which shows that over the next 7 years, cross-border transmission infrastructure should double, with an additional capacity of 23 GW by 2025 and 64 GW by 2030.
In addition, the plan explains, “Beyond cross-border needs, the bulk of the investment will be within borders, both at transmission and distribution levels”—notably so as to integrate more renewable energies and electrified demand, including hydrogen, into the energy system.
Furthermore, around 40% of European distribution grids are over 40 years old and need to be modernised.
Overall, the European Commission estimates that €584 billion in investments will be needed for the electricity grids in the course of this decade.
“Without these investments in our transmission and distribution networks, the energy transition will not happen”, stated Kadri Simson in the context of PCI Energy Days 2023, held that same day.
This plan thus not only focuses on accelerating the implementation of projects of common interest and the development of new projects but also aims to guide the work of system operators and national regulators so as to improve long-term grid planning.
Introducing regulatory incentives through guidance on anticipatory, forward-looking investments and on cross-border cost sharing for offshore projects and incentivising, among other things, transparency and improved network tariffs along with cooperation among system operators and [the implementation of] recommendations by the Agency for the Cooperation of Energy Regulators (ACER) are envisaged as well.
It is also a question of improving access to financing, especially for smart grids and the modernisation of distribution grids; expediting the permitting process; and harmonising the industry’s manufacturing requirements for generation and demand connection.
Finally, the European Commission will set up a dedicated platform—in collaboration with Member States, ACER, ENTSO-E and the EU DSO Entity, the EIB, manufacturers, and NGOs—in order to regularly monitor progress on the implementation of this action plan and to report on it during the annual Energy Infrastructure Forum.
To see the action plan: https://aeur.eu/f/9sv
List of projects of common and mutual interest
As part of the revised Trans-European Networks for Energy (TEN-E) Regulation, 166 projects of common interest (PCIs) and projects of mutual interest (PMIs) have been adopted by the European Commission through a delegated act. The former are projects situated within the EU territory, and the latter connect the EU to other countries. This is the first Union list of PCIs and PMIs drawn up under the revised TEN-E Regulation.
These projects are expected to help double the EU’s grid capacity by 2030 and achieve the renewable energy target of 42.5%.
In total, 85 projects are electricity, offshore, and smart electricity grid projects, and—for the first time—projects concerning hydrogen and electrolysers have been included (65). The list also includes 14 CO2 network projects in keeping with the goals to create a market for carbon capture and storage (see EUROPE 13301/8).
Following its adoption by the European Commission, the EU Council and the European Parliament have 2 months to accept or reject the list in its entirety, without the option to amend it.
To see the list: https://aeur.eu/f/9su (Original version in French by Pauline Denys)