European Commission presented on Wednesday, 10 December an ambitious plan to integrate EU’s electricity grids, hydrogen and carbon networks. The European Grids Package and the Energy Highways initiative are intended to enable energy to flow efficiently across all member states. They should integrate cheaper clean energy and accelerate electrification. Industry representatives welcome the initiative.
European Grids Package marks a new approach to energy infrastructure. It brings a truly European perspective on infrastructure planning, while accelerating permitting procedures. It also ensures a fairer division of costs regarding cross-border projects. The new approach will allow the best use of the existing energy infrastructure. It also should accelerate the development of grids and other physical energy infrastructure across the EU.
Innovative financing
To future-proof the grid infrastructure, Commission is proposing additional ways of financing. Cost-sharing and bundling are such examples. The reason is that increasingly integrated cross-border energy infrastructure deliver benefits beyond the territories where it is built. This makes fair and transparent cost-sharing essential to avoid disproportionate burdens on local consumers.
The European Grids Package aims to provide more transparency and fairness in the way costs and benefits are assessed. Bundling infrastructure projects can also make financing easier, for example through the establishment of special purpose vehicles, thereby attracting additional investment.
Commission President Ursula von der Leyen announced the Energy Highway initiative in her State of the Union 2025 address. It includes eight projects addressing the most urgent infrastructure needs that require additional short-term support and commitment for implementation. They were selected based on their strategic importance to complete the Energy Union.
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European grids pave the way for integration of more renewables and support the electrification of our economy, accelerating our shift away from fossil fuels. – Teresa Ribera, Commissioner for Clean, Just and Competitive Transition
“By further connecting national grids, we enhance resilience across borders, allowing national systems to mutually support each other (…) European grids pave the way for integration of more renewables and support the electrification of our economy, accelerating our shift away from fossil fuels.” said Teresa Ribera, Commissioner for Clean, Just and Competitive Transition.
The legislative proposals will now pass to the European Parliament and the Council under the ordinary legislative procedure. In parallel, the Commission will continue collaborating closely with member states and all relevant stakeholders to implement key cross-border energy infrastructure projects.
“Much needed initiative”
Hydrogen Europe, the European association representing the interest of the hydrogen industry, was among the first industry representatives to react to the Commission’s announcement. “The European Commission’s Grids Package, published today, puts energy infrastructure at the core of the transition towards more affordable energy,” reads the association’s press release.
According to Hydrogen Europe, the European Grids Package is a much needed intiative which addresses three core aspects of energy infrastructure. Funding mechanisms for derisking critical cross-border infrastructure is among them. It also should accelerate deployment through streamlined permitting, and integrate planning and various systems.
With the right infrastructure in place, hydrogen will help reduce renewable energy curtailment and deal with variable demand, providing the flexibility the system critically need. – Jorgo Chatzimarkakis, CEO of Hydrogen Europe
“With the right infrastructure in place, hydrogen will help reduce renewable energy curtailment and deal with variable demand, providing the flexibility the system critically need,” commented Jorgo Chatzimarkakis, CEO of Hydrogen Europe.
