A strategic overhaul of Europe’s electricity systems

Europe’s electricity grids have become a critical bottleneck to the EU’s energy transition and industrial competitiveness. Demand for new grid connections from renewable energy projects, industry, electric vehicles and data centres is growing rapidly, yet electrification has stalled at around 23% of final energy consumption—well below the EU’s 2030 ambitions. Accelerating grid investment, particularly in distribution networks, is therefore essential to unlock Europe’s electrification agenda.

The paper identifies slow permitting procedures, insufficient long-term planning and coordination, underinvestment in distribution grids, and inadequate regulatory incentives as the main barriers to network expansion. These obstacles delay connections, increase costs and create uncertainty for investors.

ERT calls for faster and more coordinated grid planning, harmonised connection rules, streamlined permitting, support for anticipatory investments, and modernised tariff and remuneration frameworks. Together, these measures would accelerate grid deployment, reduce system costs, strengthen Europe’s energy security, and enhance its competitiveness while advancing decarbonisation objectives.