This piece is authored by Catherine Banet, Academic Co-Director and professor at the University of Oslo.
Several structural gaps continue to affect Europe’s energy system, and energy transport infrastructures are among the most critical ones. They connect production to consumption, underpin security of supply at all grid levels, and remain essential even in an increasingly decentralised energy system. This strategic role also makes them a priority target for physical and cyberattacks. Despite a prevailing discourse of de-regulation and simplification, cables and pipelines therefore continue to require targeted regulatory incentives.
From targeted initiatives to a comprehensive grids package
On 10 December 2025, the European Commission published its awaited Grids Package, which comes after a series of targeted policy and legislative initiatives.
During the past two years, the European Commission has adopted the REPowerEU and the Electricity Market Reform, which led notably to the revision of the Electricity Regulation and Renewable Energy Directive (RED) providing for the speeding-up of permitting for renewable energy projects, including grid elements. These reforms also strengthened incentives for anticipatory grid investments and clarified forward-looking network planning, notably through a Commission guidance published in June 2025.
The strategic value of offshore grids for the energy transition and security of supply is more apparent than ever. Offshore wind development has further highlighted the need for new, often cross-border and hybrid grid solutions, where cost-allocation and benefit-sharing among Member States remain contentious. The Commission has already responded with guidance on collaborative investment frameworks (June 2024). Several attacks on submarine cables and pipelines have made irrefutable the reality of new threats on energy infrastructures, which prompted the adoption of an EU Action Plan on Cable Security (February 2025).
The Grids Package adopted in December 2025 completes the picture, proposing revisions of existing framework legislation such as the TEN-E Regulation and the Electricity Regulation.
Increase interconnectivity to strengthen European energy system integration
Interconnectivity is central to building resilience, security of supply and solidarity among Member States. Beyond existing tools, such as the Ten-Year Network Development Plan (TYNDP), the 70% rule and the 15% interconnection target, the Grids Package drives further integration by reshaping how cross-border needs are identified and prioritised.
The proposed revision of the TEN-E Regulation aims to strengthen cross-border energy infrastructure planning and speed up permitting, much in line with previous acceleration initiatives under the RED Directive. The selection process itself for Projects of Common Interest (PCI, among EU countries) and Projects of Mutual Interest (PMI, between the EU and third countries) is proposed to be simplified, and a corridor approach is followed with the identification of eight Energy Highways covering electricity, natural gas and hydrogen.
While these measures are seen as quite consensual, one of the most debated elements will be the proposed centralisation of an EU-wide scenario under the responsibility of the European Commission. Based on Member State and stakeholder inputs, this “central EU scenario” would guide ENTSO-E, ENTSO-G and ENNOH in identifying infrastructure needs, and allow the Commission to initiate a “gap filling” process where cross-border capacity is lacking.
Cost allocation and benefit sharing of cross-border projects remains politically sensitive but unavoidable. Without a harmonised EU approach, new interconnection projects risk delay or public opposition due to uneven cost distribution between hosting and benefiting states. The proposed TEN-E Regulation revision therefore reinforces ex-ante cost-allocation obligations (allocation agreements), increases transparency in cost and benefit assessments, proposes voluntary bundling of cross-border PCIs and PMIs to foster cost-sharing discussions, and builds on the use of congestion income for financing cross-border projects.
Grid access regime 2.0
European electricity grids face severe congestion, which slows down the energy transition and hampers further economic development and puts security of supply at risk. So far, connection queues and grid congestion have been subject to varying national mechanisms. The Grids Package comes with a series of recommendations and some fundamental changes.
The package includes European Commission “Guidance on timely and efficient grid connections” focusing on better network planning, improved use of existing assets using network tariffs as regulatory incentives, promotion of connection flexibility and greater transparency on grid hosting capacity. A stronger role for digitalisation will support a better use of the grid and faster grid connection processes, which will be further supported by the upcoming strategic roadmap for digitalisation and AI in energy (2026). Most importantly, Member States would be allowed to move away from the “first-come first-served” principle towards a “first-ready first-served” approach, marking a clear change in approach compared to current grid connection practice.
Extending public acceptance and benefit sharing toolboxes to grids
As for any infrastructure project, pipelines and grids bring multiple benefits for society (security of supply, enhanced grid capacity, and price stability), but may also result in public opposition in relation to siting and cost-sharing. The issue is rightly acknowledged by the Commission that proposes applying some of the benefit sharing and public acceptance tools used for renewable energy generation projects, in addition to existing public consultation procedures.
Notably, it is proposed that renewable energy projects over ten MW must share benefits with the local population. Such schemes already exist in certain Member States. Independent facilitators may act to support early dialogue and mediation, thereby reducing the risks of judicial challenges and supporting co-operative development. Finally, the Commission will prepare a practical toolbox on public inclusion in early 2026 which will facilitate the sharing of good practices on how to involve citizens and promote benefits.
All energy carriers should be covered
A striking element of the Grids Package is its implicit reliance on deep electrification. While electricity will certainly play a central role, the limited exploration of alternative or complementary system pathways, including the roles of biogases, heating and cooling, or CO2 networks, raises questions about the robustness of the underlying scenarios and a weaker focus on energy system integration than under previous initiatives.
Old tools, new tools: new governance?
Overall, the Grids Package builds on existing tools, proposing revisions and upgrades of the existing legislative framework rather than introducing entirely new instruments or governance models. This approach reflects the limited appetite for structural reforms and an important implementation backlog as Member States are still working on the transposition of provisions from the 2019 Clean Energy Package, Fit for 55, and Electricity Market Reform. It also relies on the transfer of mechanisms already tested in other parts of the energy sector, such as accelerated permitting rules and public acceptance tools. It does not introduce a new governance model, but it stretches the existing one to its limits. Its success will depend on how effectively it bridges planning, energy security and digitalisation frameworks at a time when infrastructure vulnerabilities and geopolitical risks are growing faster than Europe’s regulatory cycles. A swift and pragmatic approach to implementation by Member States will be instrumental. Closing these gaps in a timely and coherent manner will be critical as Europe faces growing infrastructure vulnerabilities and increasingly complex system integration challenges.
