European grid capacity, connection queues and anticipatory investment
The EU has one of the most extensive and resilient electricity networks in the world, spanning over 11 million kilometres across its internal market, ensuring that high-quality electricity is delivered to its consumers every day. At the same time, Europe’s power networks are confronted with new and significant challenges such as insufficient grid capacity to meet growing connection requests both on the demand and supply side, delays in project implementation and security threats. European Grids Package The Commission presented the European Grids Package (COM/2025/1005) on 10 December 2025, following the EU Action Plan for Grids adopted in November 2023. It consists of a proposal to revise the TEN-E Regulation and a proposal to accelerate permit granting procedures by amending the Renewable Energy Directive, the Electricity Market Design and the Gas Directive. The process leading to the final package included a call for evidence and an open public consultation between 13 May and 5 August 2025. ©AdobeStock/PictRider Together, the proposals aim to address the key challenges for cross-border energy infrastructure in the EU, focusing on * better coordination at EU level to map and plan the required grids infrastructure * more effective tools for cost-sharing, ensuring projects are funded in a fairer and more equitable way * speeding up and streamlining permitting processes for grids, renewables, storage and recharging stations projects, while ensuring public acceptance and benefit-sharing * making existing infrastructure more efficient, reinforced by new technology, flexibility, and storage capacity * enhancing the resilience and security of our cross-border energy infrastructure The package also includes 2 guidance documents on efficient and timely grid connections and the design of 2-way contracts for difference. Grid connections The increase in demand and deployment of clean energy sources puts strong pressure on network needs. This is evidenced by grid connection queues being present in at least 16 EU countries as of mid-2026, with data pointing to some 120 GW of mature renewable projects including 1.5 million household installations at risk of not getting timely grid access by 2030 ( EMBER, 2026 ). There are multiple root causes leading to emergence of grid connection queues, which are linked to inadequate planning and delays in network development, lack of transparency on available capacity and locational incentives for users, and grid connection procedures not accounting for maturity of the projects requesting the connection. The Guidance on efficient and timely grid connections (C/2025/8473) which provides recommendations and shares good practices that EU countries and national regulatory authorities can apply to address these challenges immediately and make the most efficient use of existing grids. These include applying the ‘first-ready first-served’ principle, transparent maturity criteria for all connection requests, establishing clear project-development milestones with associated penalties for non-compliance, and conducting regular monitoring and cleaning of the connection queues. To support the implementation of the Guidance, the Commission, in cooperation with ACER, ENTSO-E, DSO Entity and involving regulatory authorities, EU countries and other stakeholders, is organising a series of targeted stakeholder workshops covering anticipatory investments, flexible connection agreements and grid connections. The first workshop took place on 15 April 2026 to explore the implementation of flexible connection agreements (FCA) and hybrid energy systems as tools to address grid congestion and accelerate renewable energy integration. The workshop summary and presentations are available online. The Commission proposal to future-proof electricity bills in the EU (COM/2026/600) of July 2026 further clarified the application of grid connection measures in case of network congestion by regulatory authorities. 2-way contracts for difference The Guidance on the design of 2-way contracts for difference (C/2025/8479) which provides guidance to EU countries on how to design 2 way-contracts for difference between a power-generating installation operator and a counterpart, usually a public entity, in a way that supports efficient investments, in light of the existing regulatory framework. It also gives examples of how the design criteria for 2 way-contracts for difference, set out in the Electricity Regulation (EU/2019/943) and Renewable Energy Directive (EU/2023/2413), can be met. Energy Highways The Energy Highways initiative, set out as part of the European Grids package, will address 8 key bottlenecks across Europe which represent the most urgent energy infrastructure needs. By supporting the concrete implementation of projects on the ground, it will enhance overall security of supply, help integrate more renewables into the system and reduce reliance on fossil fuels, thus decreasing energy prices. The Commission will fast-track the Energy Highways with targeted support for the EU countries concerned and the project promoters involved, including leveraging financing and measures to further streamline and accelerate permit-granting processes to help bring the projects to a successful conclusion. The 8 Energy Highways are: * Iberian Peninsula: Electricity interconnections across the Pyreneans to better integrate the Iberian Peninsula (Pyrenean crossing 1 and Pyrenean crossing 2). * Great Sea Interconnector: Ending electricity isolation by connecting electricity between Cyprus and continental Europe. * Harmony Link: Strengthening electricity interconnection of the Baltic States, boosting energy security and energy independence from Russia. * TransBalkan Pipeline: reverse gas flow to increase the resilience of energy supplies in the Balkan region and eastern neighbourhood. * Bornholm Energy Island: Transforming the Baltic Sea into an offshore interconnector hub. * South-East Europe: Improve price stability and energy security in southeastern Europe, including through storage. * SouthH2 Corridor: The South hydrogen corridor involving Tunisia, Italy, Austria and Germany. * Southwest hydrogen corridor: from Portugal to Germany A European Grid Action Plan As part of the European Green Deal, the Commission published a Grid Action Plan (COM/2023/757) in November 2023. It highlighted that electricity consumption in the EU is expected to increase by around 60% by 2030. Our networks therefore have to become more digitalised, decentralised and flexible. With 40% of our distribution grids being over 40 years old, and cross-border transmission capacity due to double by 2030, €584 billion in investments are necessary. The Action Plan identifies concrete and tailor-made actions to help unlock the investment required to get European electricity grids up to speed. It focuses on implementation and swift delivery, so that the actions can make a difference in time to contribute to our 2030 objectives. The Action Plan identifies 7 areas of concrete and tailor-made actions to help unlock the investment required to get European electricity grids up to speed. It focuses on implementation and swift delivery, so that the actions can make a difference in time to contribute to our 2030 objectives. * accelerating the implementation of Projects of Common Interest and developing new projects * improving long-term grid planning for a higher share of renewables and increased electrification * introducing regulatory incentives for forward-looking grid build-out * incentivising a better usage of the grids * improving access to finance * accelerating deployment through faster permitting and public engagement * strengthening grid supply chains * In October 2025, the Commission published a study on network development planning, tariff structures and connection requests for electricity distribution grids that explores best practices and provides key recommendations. Anticipatory investments On 2 June 2025, the Commission presented a Guidance document on anticipatory investments for developing forward-looking electricity networks, replying to actions in both the Grid Action Plan and the Action Plan for Affordable Energy. The document addresses EU countries, national regulatory authorities and transmission and distribution system operators. It offers concrete recommendations on network planning, regulatory scrutiny and costs and incentives to help them create the right conditions so that grid investments reflect future needs, while also ensuring affordability for consumers and the competitiveness of industry. The Commission and ACER organised a stakeholder workshop on 11 March 2026 to advance the implementation of the Guidance. The discussion focused on how to mitigate risks related to anticipatory investments through robust network planning and early stakeholder involvement. See more details in the workshop summary and main conclusions. Related links Press material * 26 January 2026 Energy Highways: Germany and Denmark agree on joint development of the Bornholm Energy Island offshore wind project * 10 December 2025 Commission proposes upgrade of the EU's energy infrastructure to lower bills and boost independence, Questions and answers, Factsheet * 2 June 2025 EU guidance on ensuring electricity grids are fit for the future * 13 May 2025 Commission collects views in preparation of the European Grids Package * 28 November 2023 Commission sets out actions to accelerate the roll-out of electricity grids * Public inclusion toolbox for renewable energy * Study: Study on network development planning, tariff structures and connection requests for electricity distribution grids (October 2025) * Guidance document on anticipatory investments for developing forward-looking electricity networks (C/2025/3291) * EU Action Plan for Grids (COM/2023/757) * Affordable Energy Action Plan (COM/2025/79) * Clean Industrial Deal * Competitiveness Compass for the EU