Europe’s grids risk stalling energy transition

This mismatch between expected capacities and grid planning could mean that grid congestion could worsen. As well as posing a risk to meeting wind and solar targets, this could be expensive: failing to address grid capacity issues already constitutes a substantial cost for many European countries. In 2023, Spain spent more to manage its already congested transmission grid than it invested in its development.

The analysis finds that these gaps are likely due to the structure of grid planning processes, as by the time the plans are published the information they are based on can be many years out of date. This poses a challenge given that the rollout of clean technologies has rapidly accelerated since Russia’s invasion of Ukraine, with national targets and market conditions changing quickly.

Ember’s analysis concludes that this lag could potentially be addressed through revisions to regulatory frameworks, by allowing for more timely information to be used as the basis of planning. Already grids have moved up the political agenda in recent months, with the European Commission’s Grids Action Plan in November 2023 setting out key interventions.