Ambition 6: Building resilient and sufficient energy infrastructure

The recent challenges posed by the Covid-19 pandemic and energy price surges have highlighted the vulnerabilities in the EU’s energy systems and critical infrastructure. While there have been ongoing efforts to reinforce these systems, further action is necessary. The capacity limits of the existing infrastructure for renewable energy transmission and distribution have become apparent, with the International Energy Agency (IEA) reporting that over 3000 GW of renewable projects are waiting for grid connections. This backlog threatens the scalability of renewable energy and the achievement of net-zero targets. To enhance the resilience of the European energy system, significant upgrades and expansions of energy infrastructure are required to support intermittent generation and ensure flexibility in generation, transmission, and distribution.

Resilience needs to be defined in regulation

Currently, there is no consensus on the need for EU intervention in resilience-building. A targeted regulatory approach emphasising resilience principles at the EU level is essential. EU energy legislation has traditionally focused on aspects such as security of supply and operational stability but lacks a comprehensive definition of resilience as a core objective. The CERRE study “Building Resilience in Europe’s Energy System” advocates for regulatory strategies that promote resilience. Operators require clear incentives to invest in grid upgrades, making dynamic transmission systems and robust investment signals vital for the energy transition towards 2050. Coordination across Europe is also necessary to harmonise infrastructure efforts.

Increase investment in energy grids and expand cross-border interconnections

Substantial upgrades in energy infrastructure are crucial to achieving net-zero targets, necessitating significant financial investments. While funding for renewable energy has increased, grid development has lagged. The IEA estimates that annual grid investments must double to $600 billion by 2030 to meet climate objectives. The decentralisation of the energy system, marked by a higher share of intermittent renewables, adds pressure on grid operators. Strengthening cross-border interconnections will enhance the resilience and efficiency of electricity infrastructure while overcoming regulatory and financial barriers through collaborative frameworks and innovative financing mechanisms.

Coordinate clean investments across gas, electricity, and hydrogen networks

Enhancing synergies between gas and electricity infrastructure is vital, requiring innovative planning and regulation. Financing mechanisms and equitable cost allocation present challenges that need to be addressed through alternative financing models and public-private partnerships. A fair allocation of costs across energy vectors can alleviate the burden on consumers and promote equity while enhancing system resilience. Engaging energy communities and revisiting taxation frameworks can foster a more decentralised and participatory energy landscape.

Deploy smart infrastructure at a fast pace, facilitating a higher consumer engagement

Smart infrastructure is key to creating a more responsive energy system. It offers personalised customer support and feedback mechanisms while empowering consumers to manage their energy usage. Innovative billing and payment models can help tailor interventions, promoting a culture of energy conservation. Furthermore, smart technologies enable targeted support for vulnerable consumers, ensuring an inclusive and sustainable energy future.