Europe Fixes Power Grid Bottlenecks

Europe Fixes Power Grid Bottlenecks

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The European Commission has unveiled the European power grid package, a set of legislative and policy measures designed to modernize and expand the continent’s electricity infrastructure.

The initiative targets crippling power grid bottlenecks that have driven up consumer energy prices and stalled the integration of over 500 gigawatts of potential clean energy projects across the bloc.

Two-year fast track:

Addressing the biggest power grid hurdle—slow permitting procedures—the new directive mandates strict deadlines for national authorities. Key cross-border and renewable energy transmission projects will now be subject to a maximum two-year permit limit.

Positive Silence: The package introduces “positive silence,” meaning authorities must issue a response within the two-year deadline. If this deadline is missed, the permit is automatically approved, forcing action against bureaucratic delays that can last a decade.

The aim is to finally enable cheaper, clean electricity—like wind and solar—to flow freely, directly tackling the high industrial energy prices that are more than double those in the US and China.

Funding boost and strategic highways:

The power grid plan introduces significant financial and structural reforms to ensure grid development matches the EU’s climate ambitions:

Investment: The Commission has proposed a five-fold increase in the budget for the Connecting Europe Facility (CEF) Energy program, dedicating nearly €30 billion for cross-border infrastructure in the 2028-2034 budget period.

Unified Planning: The package shifts the planning process away from fragmented national views toward a unified, top-down EU cross-border infrastructure planning framework, essential for a fully integrated energy market.

Energy Highways: Eight urgent, high-priority “Energy Highways”—critical projects to alleviate structural weaknesses, such as limited interconnection with the Iberian Peninsula—have been designated for immediate political coordination and fast-tracking.

The legislative proposals for the European power grid package will now proceed to the European Parliament and the Council for deliberation and final adoption.

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ESGNEWS Team

ESGNews.Earth is a platform dedicated to covering the latest developments in sustainability, ESG trends, green finance, EV, technology and corporate responsibility. With a focus on data-driven insights and solution-oriented journalism, ESGNews.Earth provides in-depth analysis of global sustainability efforts. It highlights innovative policies, emerging technologies, and influential leaders driving positive change. Committed to fostering awareness and action, the platform aims to inform businesses, investors, and policymakers.

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