Entso-e’s concerns about the European Grids Package
In the debate on the future of the European Grids Package, ENTSO-E publishes its analysis, highlighting that the real challenge is not planning but the concrete implementation of infrastructure. ENTSO-E analyzes the Commission’s proposals on TEN-E, permitting, and environmental assessments, recognizing the central role of electricity grids for energy security, climate, and competitiveness, but pointing out significant critical issues.
According to the association that gathers the operators of European countries’ electricity transmission systems, the continental electricity system is already undergoing transformation, with a rapid spread of carbon-neutral plants and an expected increase in consumption electrification. However, the main obstacles remain financing, permitting, and supply chain, not planning.
From 2010 to date, over 16,000 km of new transmission lines have been built, and 23 member states have developed new interconnections, with two more under development. Looking ahead, over 100,000 km of new lines are planned by 2045.
Electricity grid planning is not the real problem
ENTSO-E emphasizes that the European planning system, based on TYNDP and cooperation between operators and regulators, is already effective. The results achieved demonstrate that European objectives translate into concrete and coherent programs.
According to the association of grid operators, the risk is that the European Grids Package introduces profound changes to governance, especially concerning scenarios and methodologies, generating decision-making uncertainty. This could further slow down projects instead of accelerating them.
The Commission’s proposal foresees greater political involvement in technical processes. ENTSO-E, however, believes that planning should remain guided by technical expertise, maintaining a clear distinction between technical, regulatory, and political levels.
What is the infrastructure model proposed by ENTSO-E?
Within the framework of the TEN-E revision, ENTSO-E proposes governance based on shared responsibilities. The Commission should define the political framework and objectives, while ENTSO-E should maintain its central role in the technical modeling of scenarios.
Member states, on the other hand, should strengthen their role through the regional TEN-E groups, ensuring consistency with National Energy and Climate Plans. This approach, according to ENTSO-E, helps maintain alignment between European objectives and national realities, avoiding duplication and additional costs.
Another key element is the introduction of multiple scenarios and sensitivity analyses to increase planning resilience in an increasingly uncertain and dynamic energy context.
How do needs and governance change in the European grids package?
One of the most critical points concerns the proposal to transfer responsibility for the methodology to identify infrastructure needs to ACER. ENTSO-E proposes, instead, to retain this role, with regulatory supervision and Commission approval.
Furthermore, extending the scope of analysis to possible interventions risks transforming a technical tool into a decision-making instrument. According to ENTSO-E, this would compromise the separation between European planning and investment decisions, which remain the competence of member states.
The suggested model aims to maintain the needs report as an analytical tool, useful for identifying structural bottlenecks and economic opportunities, without binding final choices.
Risks for European electricity infrastructure
On the economic front, ENTSO-E challenges the idea of using Cost-Benefit Analysis as a binding basis for cost sharing between countries (CBCA). This approach, according to the document, would reduce political negotiation space and has not proven effective in practice.
Moreover, linking access to European funding to a prior agreement on cost sharing could further slow down projects.
Criticisms also extend to the proposal to earmark congestion rents. The current regulatory framework already allows them to be directed towards investments or tariff reductions. Excessive European rigidity could generate investment distortions and system inefficiencies.
Solutions for accelerating energy grids
ENTSO-E welcomes the Package’s measures related to accelerating permits. However, it proposes further interventions to make the reforms truly effective.
Among the main recommendations is the need to recognize grid infrastructure as works of prevailing public interest, reducing regulatory obstacles. It is also suggested to extend exemptions from environmental assessments for modernization and repowering projects, even if carried out before the introduction of environmental regulations.
Another point concerns the creation of a shared species database, fed by authorities and NGOs, to overcome one of the main informational bottlenecks in authorization procedures.
Regulatory limits of the European grids package according to ENTSO-E
A cross-cutting element concerns the extensive reliance on delegated and implementing acts. ENTSO-E highlights that this approach risks generating legal uncertainty and reduced transparency, with negative effects on long-term investments.
For this reason, the association recommends embedding fundamental elements, such as methodologies and governance, directly into the main legislative texts, reducing subsequent discretion.
Finally, the necessity to avoid regulatory fragmentation among different European instruments, such as TEN-E, RED, and environmental directives, which currently use definitions and procedures that are not always consistent, is emphasized.