European Commission Launches Major Energy Grid Upgrades
The European Commission has unveiled plans to modernise and expand the EU’s energy infrastructure, aiming to lower electricity bills and enhance energy independence. The proposals include the European Grids Package and the Energy Highways initiative, designed to improve cross-border energy flow, integrate clean energy, and accelerate electrification across Member States.
According to the Commission, the initiatives will streamline infrastructure planning, speed up permitting procedures, and ensure fair cost-sharing for cross-border projects. Bundling projects and establishing special purpose vehicles are expected to attract private investment and increase financing efficiency.
The Energy Highways, announced by President Ursula von der Leyen in her 2025 State of the Union address, target the most urgent infrastructure gaps critical to completing the Energy Union. The Commission will fast-track these projects with enhanced political coordination and EU-level prioritisation, supporting Member States in giving them national priority.
Despite recent progress, several Member States remain below the 15% interconnection target for 2030. Fossil fuels still dominate the EU energy mix, with high reliance on imports, contributing to volatile energy prices.
The Commission also proposes scaling up financial support, with the Connecting Europe Facility (CEF) Energy budget increasing from $6,8 billion (€5.84 billion) to $35 billion (€29.91 billion) for 2028-2034, complemented by private investment incentives.
The legislative proposals will now move to the European Parliament and Council for approval under the ordinary legislative procedure.
Source: ec.europa.eu
