EU grids upgrade targets lower energy bills and independence
The European Commission has unveiled a major upgrade plan for the EU’s energy infrastructure, aiming to cut electricity bills, strengthen energy security and reduce dependence on imported fossil fuels. At the heart of the proposal are a new European Grids Package and an “Energy Highways” initiative designed to modernise and expand Europe’s electricity networks.
For eeNews Europe readers, the announcement matters because grid capacity, cross-border interconnection and investment frameworks are now seen as decisive factors for industrial competitiveness, semiconductor manufacturing, electrification and the integration of renewables across the continent.
A European approach to grids
The Grids Package introduces a more coordinated, EU-wide approach to planning energy infrastructure. Rather than focusing on national projects in isolation, the Commission wants to optimise the use of existing grids while accelerating new developments where they deliver the most value at European level. Faster permitting procedures and clearer rules for cross-border cost sharing are central elements.
The Commission says many grid projects deliver benefits far beyond the country that hosts them. The new framework therefore aims to ensure fairer and more transparent cost allocation, avoiding situations where local consumers shoulder a disproportionate burden for infrastructure that serves multiple markets. The proposal also promotes bundling projects and using special purpose vehicles to attract additional private investment.
Energy Highways get fast-track status
A key political element of the package is the launch of eight “Energy Highways,” first announced by Commission President Ursula von der Leyen in her 2025 State of the Union address. These projects have been selected for their strategic importance in completing the Energy Union and for the level of EU political backing required to make them happen.
The Commission plans to fast-track these projects through enhanced coordination, support from European coordinators and close cooperation with the Energy Union Task Force. The Commission will encourage Member States to give these projects the same priority at national level as they receive in Brussels.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said: “The European Grids Package is more than just a policy. It’s our commitment for an inclusive future, where every part of Europe reaps the benefits of the energy revolution: cheaper clean energy, reduced dependence on imported fossil fuels, secure supply and protection against price shocks. It symbolises our determination to overcoming challenges through unity, delivering a true EU response to a challenge of EU importance.”
Cost pressure drives urgency
The background numbers underline the urgency. In 2024, industrial electricity prices in the EU averaged €0.199 per kWh, far above China and the US. Consumer prices in early 2025 varied widely between Member States, highlighting the impact of uneven infrastructure investment and integration.
Dan Jørgensen, Commissioner for Energy and Housing, said: “A truly interconnected and integrated energy system is the foundation of a strong and independent Europe. To achieve it, we need an energy infrastructure network of cables, pipes and grids that is up to date, fully interconnected, and that enables clean, affordable, homegrown energy to flow freely and securely to every corner of our Union.”
The legislative proposals now move to the European Parliament and the Council. In parallel, the Commission plans to scale up funding, including a proposed five-fold increase in the CEF Energy budget under the next multiannual financial framework, complemented by measures to leverage private capital.
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