On Tuesday, 1 April, the European Court of Auditors (ECA) pointed out in a new publication dedicated to the EU’s electricity grids that the current pace of planned grid investments will not be sufficient to meet future electricity demand, which is expected to double by 2050.
According to the report, grid operators’ investment plans are expected to total €1.871 trillion between 2024 and 2050 if the current pace continues. This amount falls short of investment needs, which the European Commission has estimated to be between €1.994 trillion and €2.294 trillion.
The report points out that the grid’s modernisation—which is necessary—faces several challenges, such as “coordinating grid planning across the EU, streamlining permitting processes, and tackling equipment and labour shortages”.
To reduce investment needs, the auditors recommend, among other things, making the grid—and the electricity system as a whole—more flexible.
“[N]ew technology, storage solutions, and more flexible grids can all help to bring costs down”, delineates Keit Pentus-Rosimannus, the ECA member in charge of the report.
The document moreover stresses how important suitable regulatory frameworks and funding arrangements are at a time when some operators are struggling to access the necessary initial investments. Nevertheless, it emphasises, “Striking a balance” between investment needs and electricity bills that consumers can afford “is a challenge”.
Finally, the report mentions that it is difficult to predict the long-term impact of grid investments and renewable energy integration on electricity bills.
To see the ECA’s report: https://aeur.eu/f/g74 (Original version in French by Pauline Denys)