Electricity System Planning and Grid Investments

How can Europe accelerate the roll-out of electricity network infrastructure?  

Accelerating the roll-out of electricity transmission networks is essential for reaching decarbonisation goals at low cost, strengthening security of supply, and supporting strategic autonomy. 

Yet, translating these ambitions remains challenging. Current infrastructure projects across Europe do not cover the identified needs, and many face delays. Further obstacles include fragmented planning across National Energy and Climate Plans (NECPs) and the difficulty in making efficient network investment decisions without future electricity generation and demand assumptions.   

This new CERRE issue paper, produced by CERRE Research Fellow Bert Willems, examines trade-offs in three areas: planning and coordination, commitment and risk allocation across borders, and regulation of network investments. 

Key messages include: 

• The proposed Grids Package would make the European Commission responsible for a central scenario consistent with EU energy and climate targets. National network plans would use compatible scenarios, while detailed investment planning would remain bottom-up. 

• Commitments may make planning more reliable because they reduce uncertainty about future generation and demand, but they can also lock in policy choices that new information would justify revising.  

• Agreements between Member States on national generation and demand scenarios, regulatory obligations for TSOs to deliver investments, and financial commitments by generators and large electricity users in connection agreements could help translate plans into commitments. 

• Regulation of anticipatory investments may require fine-tuning how risks are shared between TSOs and network users. Guaranteed full cost recovery may lead to overinvestment, while incentive regulation may lead TSOs to postpone investment in long-lived assets.  

This issue paper draws on existing literature and discussions at the CERRE Regulatory Lab held in Brussels on 1 October 2026 under Chatham House Rule.