Beyond the grids package: a modernised and resilient energy system

Energy grids lie at the intersection of Europe’s economy, sovereignty and climate objectives.  

“In 2025, Europe added a record amount of renewable energy, about 80 gigawatts (GW). It is the first year where wind and solar in generation were more than fossil fuels. At the same time, we are making a small economic suicide because we had around 500 GW in queues, and those can produce electricity at a much lower cost than the average wholesale price”, stressed Laura Cozzi, Director for Sustainability, Technology and Outlooks at the International Energy Agency (IEA) at this Friends of Europe Policy Insight debate. 

While Europe has done well in rolling out renewables, long connection queues, insufficient grid capacity and slow permitting are increasing the costs for consumers. As the continent seeks to reduce its dependence on imported oil and gas, electrification and a more capable, better planned grid will be central to a 21st‑century electricity system that translates into lower bills, greater strategic autonomy and a credible climate pathway. The discussion addressed a broad spectrum of themes, spanning the role of large electricity consumers, the economic and geopolitical stakes of grids and electrification, and the governance challenge presented by Europe’s fragmented energy system. 

Tom Howes, Adviser for the green transition and market regulation at the European Commission Directorate-General for Energy, introduced the Commission’s work related to the grids package, outlining the four main elements that it constitutes: planning, permitting, cost-sharing and connection guidance. He stressed that rather than taking decisions on its own and imposing rules on everyone, the European Commission is working in cooperation with all relevant stakeholders, including system operators and member states. “[T]he Commission is […] helping to give that European perspective, to ensure there is a more integrated approach across member states, and to take account of the European dimension of cross border interconnections,” he stated during the debate.  

From the demand-side perspective,Vilma Kaza, Google’s EMEA Sustainability & Energy Policy Lead, argued that big digital players must act as “good grid citizens,” supporting efficiency, clean power and smarter networks. “We are committed to being a good grid citizen and bring[ing] value to the grid where we’re operating. That means being relentlessly energy efficient and running some of the most efficient data centres in the world, so that our growth actively supports Europe’s clean energy transition and grid resilience.” 

Three specific areas were highlighted where additional engagement across stakeholders would be beneficial: 

• A more proactive and long-term planning of the electricity grid to address the future trends in electricity consumption.
• The deployment of grid-enhancing technologies that can support operators and energy stakeholders make better-informed decisions and optimise their operations.
• Reaching the estimated target of €1.2tn for Europe’s electricity grids by 2040. 

However, grids represent just one part of the clean energy transition, and much more is required to improve Europe’s energy system. “What the Commission has done on grids was sorely needed. The implementation is going to be essential, but there is a beyond. There are other parts to make electrification and the all-cost structure work better that are relying on one word: flexibility. Electricity markets today are [equally capable of] producing electricity [and] manag[ing] the flow of electricity in a new way,” added Laura Cozzi, who also underlined the importance of addressing vulnerabilities related to critical raw materials supply chains, and skills, and securing employment and skill transfer in the energy sector for grid development. 

On the political side, Member of the European Parliament Committee on Industry, Research and Energy, Thomas Pellerin-Carlin, stressed the need for coherent governance and consistent signals for electrification. “Electrification is not happening in Europe – we now consume less electricity than in 2019. Yet we are adopting policies in isolation: one day an electricity package saying we need more electrification, six days later an automotive package that slows it down. Without coherent, system-wide governance, we risk building electricity highways to nowhere.”  

Michael Bloss, Member of the European Parliament Committee on Industry, Research and Energy (ITRE), expressed his belief that the European Commission is “going in the right direction” with its grids package. He did, however, also explain that, according to him, power should be given to an independent agency, which would allow the voices of all stakeholders to be heard, rather than the Commission having a stronger role in governance and direction.   

Bloss stressed the need for Europe to achieve energy sovereignty in light of recent geopolitical developments. “We are in a situation where we [have] finally, and thankfully, decided to move away from Russian gas, but we’re getting gas from the United States. At this moment, if you look at the whole of the European Economic Area, 60% of LNG imports come from the US. If this gas supply is used to blackmail Europe, we are in big danger. That is the reason why China is going for electrification.” 

Tom Howes, Adviser for the green transition and market regulation at the European Commission Directorate-General for Energy, addressed the issue of governance, noting that the grids package will help improve the current situation. All panellists agreed that the package was sorely needed to tackle the challenges facing Europe’s energy system. On the matter of coherence, he argued that “everything is in the frame of the Clean Industrial Deal, where we made the pivot to address the sudden shock of unacceptably high energy prices and unacceptably insecure fossil fuels. We need to repower the EU, which means more renewables, more efficiency and better grid. […] The electrification action plan will be where we show how all of this is coherent and […] driv[ing] forward electrification”. 

Together, these perspectives underscored that Europe’s success will depend on aligning infrastructure, markets and governance. However, achieving lower prices, greater security and faster decarbonisation will require further investment in technology, skills and the resilience of global supply chains. 

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PHOTO CREDIT: Shutterstock| SALNIKOV MIKHAIL

Related content:

• Policy Paper | Grids Package: connecting the dots by Phuc-Vinh Nguyen and Alice Moscovici, Institut Jacques Delors
• Insight | Powering Europe’s energy security: the vital role of grid investment by Jean-Christophe Laloux, EIB
• Event | The outlook for energy in a fragmented global landscape, a conversation with Teresa Ribera and Fatih Birol in November 2025