€584 billion to modernise electricity grids and integrate renewables

The European Commission is preparing to launch a €584 billion plan to modernize Europe's electricity grids, with the aim of preparing them to handle the growing influx of electricity from renewable sources. The EU executive will present the vision to boost investment in energy infrastructure, with a focus on cross-border connections that will facilitate the integration of offshore renewable electricity.

The plan includes commitments to speed up the permitting process and calls for new financing instruments, including financial support from the European Investment Bank, reports Bloomberg. According to a European Commission working document, Europe's electricity grids face significant challenges in the face of growing demand from clean mobility, heating and cooling, industrial electrification and green hydrogen production.

With the increased production capacity of photovoltaic and wind power plants at different times of the day and year, electricity transmission grids will be under significant pressure. It is essential to deploy 'smart' grids capable of integrating storage solutions, such as batteries, to ensure an efficient flow of electricity at peak times.

The paper points out that 40% of Europe's distribution grids are more than four decades old, and electricity consumption is expected to grow by 60% by 2030. The European electricity industry has warned of the urgent need to modernize grids to facilitate the transition to clean energy sources and avoid them becoming a barrier to green energy supply.