The European Network of Transmission System Operators for Electricity (ENTSO-E) has dropped a bombshell with its latest Ten Year Network Development Plan (TYNDP), setting the stage for a seismic shift in Europe’s energy infrastructure. The plan, out for consultation, pulls no punches: the existing pipeline of projects, while crucial for the energy transition, won’t cut it if Europe wants to meet its climate ambitions without breaking the bank. The EU is at a crossroads, and the path forward requires a significant investment.
By 2030, the EU’s generation mix and electricity grid are expected to meet energy transition targets for CO2 and renewables. But here’s the kicker: by investing an additional €5 billion in 88GW of cross-border capacity and 56GW of storage capacity, Europe could minimize the cost of its power system, saving a whopping €8 billion in system costs. This isn’t just about the environment; it’s about economics. Every euro invested in the electricity grid translates into over €2 saved in system costs by 2040. This infrastructure would reduce renewables curtailment by 114TWh/year, CO2 emissions by 18Mt, and generation of electricity by gas power plants by 48TWh. But the benefits don’t stop at environmental gains. The investment creates jobs and benefits, with the TYNDP 2024 project portfolio expected to generate 4.1 million jobs, mobilise €603 billion in production, and increase the EU’s GDP by €247 billion by 2040. Public administration revenues through taxes could reach €111 billion, benefiting European society.
But here’s the rub: failing to make these investments would result in the region’s overall electricity bill increasing by an extra €13 billion per year. This is a stark warning that inaction could be costly, both in terms of climate impact and economic burden. The draft plan also notes that measures to improve energy efficiency should be a first step and that there is a need for resilient and efficient supply chains to meet the growing demand for grid technologies.
The plan also introduces a vision and analysis of system needs for 2050, emphasising the importance of investing in network and storage infrastructure to achieve a CO2-neutral energy system. With investment of €13 billion per year, an additional 224GW of cross-border grid capacity and 540GW of storage capacity are found to be economically efficient, saving €23 billion annually in system costs. The total investment in electricity infrastructure in 2050, also considering offshore hybrid and radial connection infrastructure, amounts to €863 billion over 25 years.
The TYNDP 2024 is open for public consultation until 14 March 2025. This is a call to action for all stakeholders to engage and shape the future of Europe’s energy infrastructure. The market must now find the most efficient solutions using European ingenuity. Complex permitting processes must be simplified without sacrificing environmental or social ambition. Rodrigo Barbosa, Long-Term Planning Manager at ENTSO-E, underscores this point: “Currently complex permitting processes result in project delays and cancellations, holding back the necessary investment and change. It is possible to make these processes much simpler without sacrificing an inch of environmental or social ambition.”
This news shapes the development of the sector by presenting a clear roadmap for investment and infrastructure development. It challenges the status quo by highlighting the economic benefits of ambitious climate action and the risks of inaction. It sparks debate on the role of the market and the need for streamlined permitting processes. It also underscores the importance of public engagement and the potential for job creation and economic growth. This is not just about energy; it’s about Europe’s future. The ball is now in the court of policymakers, industry leaders, and the public to engage with this plan and drive the energy transition forward.
