EU member states have agreed within the Council of the European Union on a position on the energy grids package, aimed at accelerating the development and adaptation of infrastructure in line with the needs of the green transition. The legislation was proposed by the European Commission last year, including a revision of the Trans-European Energy Infrastructure (TEN-E) regulation and a permitting directive.
With the accelerated development of renewable energy sources in the European Union, outdated electricity transmission infrastructure has become a bottleneck in Europe’s energy system. Wind farms, solar power plants, hydrogen production and electrified industry require stronger transmission networks connecting member states.
The European Commission presented the European grids package in December last year, with the aim of amending EU legislation on Trans-European Energy Infrastructure. The plan also envisages the development of a central scenario for long-term grid development planning.
The central scenario was not well received by all member states. Bulgaria, Finland, France, Poland and Sweden argued that if Brussels, namely the European Commission, were to have too much influence over grid development, the EU’s green transition could slow down, become more expensive and less secure.
However, energy ministers managed to agree on the council’s position on the package on June 26 in Luxembourg. The Cyprus presidency of the Council of the EU, which ends on July 1, softened the commission’s original proposal.
Member states would have a greater role in developing the central scenario
Member states supported measures to improve grid development planning in the electricity, hydrogen and fossil gas sectors through a common approach. The compromise envisages a greater role for member states in developing the central scenario.
Although the European Commission would develop it, national authorities would be able to verify the data and assumptions used in the central scenario. The commission will have to take into account national energy and climate plans, regional specificities and disparities in energy prices. The central scenario should also be regularly reviewed, accompanied by sensitivity analyses to be carried out every two years.
The council also agreed on rules for reinvesting part of the unused congestion income into financing new interconnectors between EU member states.
Congestion income is generated when limited transmission capacities between bidding zones lead to differences in electricity prices.
New priority project category due to rising risk of sabotage and cyberattacks
From January 1, 2028, transmission system operators will have to direct part of their unused congestion income to EU projects aimed at reducing congestion on cross-border interconnections. In the first phase, this share will amount to 10%, after which it will increase by five percentage points per year until it reaches 25% in 2031.
In order to ensure the security and resilience of existing electricity infrastructure, the ministers created a new category of priority projects due to the growing risk of sabotage and physical or cyberattacks. This will enable the financing of key components for emergency repairs of electricity interconnectors.
Faster permitting
The approval of clean energy and energy infrastructure projects in the EU currently takes between five and ten years.
Energy ministers agreed that permitting procedures need to be accelerated and simplified. One of the measures is the introduction of digital portals for submitting applications and giving priority to electricity and renewable energy projects, which would be treated as projects of overriding public interest unless proven otherwise.
In addition, in order to further speed up the process, member states may provide that the absence of a response from authorities in certain stages of the procedure is considered tacit approval.
The council’s position includes measures for greater citizen involvement in renewable energy projects, such as organising dialogue with the support of independent facilitators and benefit-sharing with local communities.
This is only one stage in the legislative process. The European Parliament’s industry committee will vote on the package on July 1, after which it will be put to a plenary vote. The council and parliament would then negotiate the final text.
