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EU Commission Unveils Action Plan for Efficient Electricity Grid Expansion
The action plan outlines tailored measures to address challenges in expanding, digitalizing, and optimizing EU electricity transmission and distribution grids.
December 01, 2023. By Abha Rustagi
In a move to align with the European Green Deal, the European Commission has proposed an action plan geared towards enhancing the efficiency and widespread deployment of electricity grids across the European Union (EU).
The proposed action plan builds upon an existing supportive legal framework for electricity grid rollout in Europe, with the vision of accommodating the anticipated 60 percent increase in electricity consumption by 2030.
The evolving landscape includes a shift towards a more digitalized, decentralized, and flexible system, incorporating rooftop solar panels, heat pumps, local energy communities, offshore renewables, electric vehicles, and growing hydrogen production needs.
With a significant portion of EU distribution grids exceeding 40 years in age and cross-border transmission capacity expected to double by 2030, a substantial investment of EUR 584 billion is deemed necessary. The action plan outlines tailored measures to address challenges in expanding, digitalizing, and optimizing EU electricity transmission and distribution grids.
Key objectives include improving long-term grid planning to accommodate renewables and electrified demand, introducing regulatory incentives for anticipatory investments and cross-border cost sharing for offshore projects, enhancing grid transparency, improving network tariffs for efficiency, and fostering innovation and collaboration between system operators.
The commission emphasizes swift implementation to meet its 2030 objectives and aims to incentivize better grid usage through increased transparency and improved tariffs. The plan also focuses on improving access to finance for grid projects by enhancing visibility of EU funding opportunities, particularly for smart grids and distribution grid modernization.
The proposed action plan builds upon an existing supportive legal framework for electricity grid rollout in Europe, with the vision of accommodating the anticipated 60 percent increase in electricity consumption by 2030.
The evolving landscape includes a shift towards a more digitalized, decentralized, and flexible system, incorporating rooftop solar panels, heat pumps, local energy communities, offshore renewables, electric vehicles, and growing hydrogen production needs.
With a significant portion of EU distribution grids exceeding 40 years in age and cross-border transmission capacity expected to double by 2030, a substantial investment of EUR 584 billion is deemed necessary. The action plan outlines tailored measures to address challenges in expanding, digitalizing, and optimizing EU electricity transmission and distribution grids.
Key objectives include improving long-term grid planning to accommodate renewables and electrified demand, introducing regulatory incentives for anticipatory investments and cross-border cost sharing for offshore projects, enhancing grid transparency, improving network tariffs for efficiency, and fostering innovation and collaboration between system operators.
The commission emphasizes swift implementation to meet its 2030 objectives and aims to incentivize better grid usage through increased transparency and improved tariffs. The plan also focuses on improving access to finance for grid projects by enhancing visibility of EU funding opportunities, particularly for smart grids and distribution grid modernization.
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