Electricity grids: Key policy actions | Ember

Electricity grids: Key policy actions

Ember puts forward key policy recommendations for grids in the EU, specifically with the view to the European Commission’s upcoming Grids Action Plan.

30 Oct 2023
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Summary

Without strengthening the grid, climate targets will remain out of reach

The combination of power system decarbonisation and direct electrification is undoubtedly the most efficient and cost-effective route to a carbon neutral economy by 2050. This means the power grid will become the backbone of the energy system, transporting 50% or higher of Europe’s energy by 2050.

The recent political attention on grids is proof of the growing recognition of their critical role for Europe’s future and the credibility of the EU’s net-zero commitments. Without strengthening the grid, climate targets will remain out of reach.

Ember recognises the important strides that have been made on grids over the years. However, there is still work to be done. At this critical juncture, Ember welcomes the upcoming Grids Action Plan from the European Commission and seeks to provide input to its development. 

Further detail is provided on select recommendations (indicated by an asterisk) in the annex. 

The action plan should seek to:

  • Recognise the critical role of power grids in achieving EU energy and climate targets and embed this in the political agenda, as demonstrated by the example of the Biden-Harris administration. Strengthened political support will be essential to implement proposed reforms, drive key projects and enhance regional cooperation. The latter is particularly important for interconnection, where current plans are falling short of future system needs.
  • Place clean power at the core of grid development plans*, in line with the EU’s commitment to carbon neutrality. This is key to enable anticipatory grid investments, ensuring that power grid developments pave the way for clean electrification, rather than lag behind growth. It is also crucial to ensure grid constraints do not negatively impact the ambition level of National Energy and Climate Plans, especially with regard to wind and solar capacity and renewable electricity shares. 
  • Clearly distinguish between distribution, national transmission and interconnection. They each have their own set of challenges, timelines and solutions. Reference to “grids” will not provide sufficient momentum, identify key priorities or provide clarity on additional resources.
  • Seek to identify and tackle the structural and economic* reasons behind grid underinvestment. This may include incomplete implementation of market reforms, tariff structures, lack of investment incentives, amongst others. 
  • Improve data availability and transparency on grids*. This would provide reliable information critical for investors and electricity consumers, and allow grid development to be better assessed and monitored. 
  • Boost European manufacturing capacity of grid components. Since six of the world’s top industry players in the high-voltage and line market are located in Europe, investing in electricity grids also means investing in European industry. 
  • Address grid connection queues with urgency* by shifting from a “first come, first served” approach to a “first ready, first served” cluster approach. 
  • Reform power system planning*, integrating the currently separate planning processes for highly interconnected elements on the electricity system. The ultimate objective would be an integrated, streamlined, system-level planning framework for the power sector that prioritises system efficiency.
  • Recognise that grid constraints are already a barrier to the energy transition, and prioritise investment in alternative grid solutions i.e. dynamic line ratings, cable pooling, storage, demand flexibility, in the near and medium term.  

 

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Ember puts forward key policy recommendations for grids in the EU, specifically with the view to the European Commission’s upcoming Grids Action Plan.

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