Key takeaways from the report “How Europe’s grid operators are preparing for the energy transition” by Beyond Fossil Fuels, E3G and IEEFA are:
Despite power grids remaining high on the political agenda, the scale of the challenge is immense. A conservative estimate suggests that as of 2024-2025, there were 1,700 GW of renewable energy and hybrid projects waiting for grid connections across 16 countries. These projects represent billions of euros worth of investment being held back, thus hampering Europe’s economic growth. Meanwhile, there are eye-watering costs associated with renewables curtailment: a total of €7.2 billion in 2024 across just seven countries.
TSOs are in many cases being obliged to use outdated national energy plans to prepare for the future. These do not reflect exponential market growth in renewables, and can therefore hold back the level of anticipatory investment and foresight needed to integrate renewables and storage. This risks creating a self-fulfilling prophecy where gas is ‘needed’ for longer.
Across all areas, there is good practice on display across Europe. Were all of it combined into one TSO, it would provide a nearly perfect model. This shows that a rapid diffusion of good practices, driven by political leadership, will be key
Grid investments will be central to Europe’s future security and competitiveness. Yet levels of independent oversight and transparency regarding their planning is generally low. More robust, fully independent system planning can help ensure value for money and effective delivery.
Access the report here
