Steering a 60% Surge in Electricity Demand by 2030
In the face of escalating electricity demands and a pivotal shift towards renewable energy, the European Union's Grid Action Plan emerges as a strategic response, essential for shaping the future of Europe's energy infrastructure.
At Synenergy Advisors, specialists in Electricity Transmission infrastructure design, we recognize the profound implications of this plan for the energy sector, particularly in the context of Greece's evolving energy landscape.
A key driver of the plan is the projected 60% surge in electricity consumption by 2030, propelled by the increased demand for clean mobility, heating and cooling, and the electrification of industries.
This upsurge underscores the urgency for an extensive upgrade and expansion of Europe's energy networks.
In tandem with this growing demand, there is a pronounced push to escalate wind and solar generation capacity from 400 GW in 2022 to at least 1,000 GW by 2030. Such ambitious targets necessitate a swift and strategic response to ensure the resilience and capacity of the grid.
According to the European Network of Transmission System Operators’ (ENTSO-E) Ten-Year Network Development Plan, the upcoming seven years are critical, as the cross-border transmission infrastructure is expected to double.
This expansion is not just limited to cross-border projects; significant investments are also foreseen within national borders, impacting both transmission and distribution levels.
This trend echoes globally, with the International Energy Agency projecting a need for over 80 million km of grids worldwide by 2040.
The EU Commission's estimate of €584 billion in investments needed for the electricity grids by 2030 represents a substantial portion of the overall funding required for the sector's clean transition.
This financial commitment is pivotal in ensuring that the grid infrastructure becomes a facilitator rather than a bottleneck in Europe's swift shift to clean energy.
The Action Plan introduces a comprehensive 14-point strategy focusing on making Europe’s electricity grids stronger, more interconnected, more digitalized, and cyber-resilient.
Central to this strategy is the acceleration of Projects of Common Interest (PCI) implementation and the development of new projects.
From 2024, the Commission, Member States, and Transmission System Operators (TSOs) are set to enhance support for PCI preparation, ensuring faster project rollout and funding.
The ENTSO-E’s role in advancing long-term grid planning towards 2050 is crucial, particularly in integrating the needs of offshore, onshore and hydrogen-based systems from Q1 2024.
Moreover, from Q1 2025, the Commission aims to introduce regulatory incentives for forward-looking grid build-out, identifying conditions under which anticipatory investments in grid projects should be granted.
The plan also addresses the need for smarter grid utilization, with ENTSO-E and the EU Distribution System Operator (DSO) Entity working towards harmonized grid hosting capacity definitions and the promotion of smart grid technologies from Q4 2024.
Additionally, the strengthening of grid supply chains is targeted, with collaborative efforts to develop common technology specifications and improve grid project pipeline visibility.
In sum, the EU Grid Action Plan sets a clear and ambitious course for the development of Europe’s energy grids.
At Synenergy Advisors, we are fully aligned with this vision, ready to leverage our expertise in Electricity Transmission infrastructure design to contribute to a more interconnected, efficient, and sustainable European energy network.
This plan is not just a blueprint for the future; it’s a call to action for today, ensuring that Europe’s energy infrastructure is robust, adaptable, and ready to embrace the renewable energy era.
