Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Changedon Electricityelectricity grids: the backbone of the EU energy system

(2025/2006(INI))

The European Parliament,

– having regard to the Treaty on the Functioning of the European Union, and in particular Article 194 thereof,

Added– having regard to the Commission communication of 8 July 2020 entitled ‘Powering a climate-neutral economy: An EU Strategy for Energy System Integration’ (COM(2020)0299),

– having regard to the Commission communication of 28 November 2023 entitled ‘Grids, the missing link - An EU Action Plan for Grids’ (COM(2023)0757),

Added– having regard to the Commission report of January 2025 entitled ‘Investment needs of European energy infrastructure to enable a decarbonised economy’,

Added– having regard to the Commission communication of 26 February 2025 entitled ‘Action Plan for Affordable Energy – Unlocking the true value of our Energy Union to secure affordable, efficient and clean energy for all Europeans’ (COM(2025)0079),

Added– having regard to the Commission communication of 26 February 2025 entitled ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’ (COM(2025)0085),

Added– having regard to the Commission communication of 5 March 2025 entitled ‘Industrial Action Plan for the European automotive sector’ (COM(2025)0095),

▸5 unchanged paragraphs

– having regard to Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 (the CEF Regulation),

– having regard to Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 (the TEN-E Regulation),

– having regard to Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU,

– having regard to Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity,

– having regard to Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 (the Renewable Energy Directive),

Added– having regard to Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings,

– having regard to Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union’s electricity market design,

– having regard to Regulation (EU) 2024/1747 of the European Parliament and of the Council of 13 June 2024 amending Regulations (EU) 2019/942 and (EU) 2019/943 as regards improving the Union’s electricity market design (Electricity Market Design (EMD) Regulation),

Added– having regard to Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council, which reflects the EU’s electricity interconnection targets,

– having regard to the Council conclusions on ‘Advancing Sustainable Electricity Grid Infrastructure’, as approved by the Transport, Telecommunications and Energy Council at its meeting on 30 May 2024,

Added– having regard to its resolution of 10 July 2020 on a comprehensive European approach to energy storage,

Added– having regard to its resolution of 19 May 2021 on a European strategy for energy system integration,

Added– having regard to the report of January 2023 by the EU Agency for the Cooperation of Energy Regulators (ACER) on electricity transmission and distribution tariff methodologies in Europe,

Added– having regard to the report of 19 December 2023 by ACER entitled ‘Demand response and other distributed energy resources: what barriers are holding them back?’,

Added– having regard to the report of April 2025 by the European Network of Transmission System Operators for Electricity (ENTSO-E) entitled ‘Bidding Zone Review of the 2025 Target Year’,

– having regard to Rule 55 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Industry, Research and Energy (A10-0000/2025),(A10-0091/2025),

Change 1

ChangedA. whereas electricity grids are essential for the Union to achieve its clean energy transition and to deliver renewable energy while supporting economic growth;growth and prosperity; whereas inefficiencies and lack of full integration negatively impact energy prices for consumers and companies;

Change 2

ChangedB. whereas in light of the growing demand for electricity, significant investments and upgrades are requiredrequired, along with regulatory oversight, to increase cross-border and national-level transmission capacity and modernise infrastructure, ensuring a decarbonised, flexible, decentralisedmore anddecentralised, digitalised and resilient electricity system;

Change 3

Removed1. Calls on the Member States to fully explore and expand their electricity grid capacity, including transmission and distribution;

AddedC. whereas poor connectivity and grid bottlenecks are among the main reasons the EU cannot fully benefit from the significant installed capacities of wind and solar energy, thereby ensuring affordable prices for households and industry; whereas the lack of strong interconnection between regions with different natural and climatic characteristics leads to the overproduction of energy and administrative limitation on renewable production in some regions, while other regions are struggling with insufficient supply and high prices;

Removed2. Calls on the Commission, the Member States, DSO Entity and ENTSO-E to implement the actions of the EU grid action plan without delay;

AddedD. whereas transmission system operators (TSOs) are essential for integrating offshore renewable energy into the EU grid, in particular for those connected to more than one market; whereas, if TSOs fail to provide the agreed grid capacity, compensation should be paid to developers for lost export capacity, funded by congestion income; whereas such compensation should be shared fairly among TSOs and align with principles of non-discrimination and maximising cross-border trade; whereas this highlights the importance of maintaining a functioning interconnector backbone, as failures in interconnector capacity may result in costs for both producers and TSOs;

AddedE. whereas Europe will only reach its decarbonisation objectives if there is a coordinated, pan-European approach to electricity system planning, connecting borders, sectors and regions;

AddedF. whereas the planning of electricity transmission and distribution networks must be coordinated to ensure the effective development of the EU electricity system;

AddedG. whereas the EU electricity grid was built for a 20th century economy based on centralised, fossil fuel-fired electricity generation, and must be modernised to meet the demands of a digitalised economy with increased levels of electrification and a higher share of decentralised and variable renewable energy sources;

AddedH. whereas cross-border interconnectors, transmission and distribution grid infrastructure are critical for integrating renewables, reducing costs for European consumers and increasing the security of energy supply;

AddedI. whereas distribution level grid projects are already eligible for funds under the Connecting Europe Facility – Energy (CEF-E); whereas, however, only a small share has been allocated to distribution grids under the most recent Projects of Common Interest (PCI) list; whereas CEF-E should better reflect the role of distribution grids for the achievement of EU energy and climate targets;

AddedJ. whereas ENTSO-E has calculated that cross-border electricity investment of EUR 13 billion per year until 2050 would reduce system costs by EUR 23 billion per year;

AddedK. whereas the ‘energy efficiency first’ principle is a fundamental principle of EU energy policy and is legally binding; notes that the correct implementation of this principle will significantly reduce energy consumption, thereby lowering the need for investment in electricity grids and interconnectors;

AddedL. whereas keeping the EU energy policy triangle of sustainability, security of supply and affordability in balance is key to a successful energy transition and to a reliable European energy system;

AddedM. whereas energy network planning is a long-term process closely linked to investment stability;

AddedN. whereas energy system flexibility needs are expected to double by 2030, in light of an increased share of renewables; whereas demand-side flexibility is therefore crucial for grid stability; whereas individual citizens, businesses and communities participating in the electricity market may bring manifold benefits to the grids, such as enhanced system efficiency, resilience, investment optimisation, improved social acceptance and lower energy costs; whereas serious delays and inconsistencies in implementing existing EU provisions on citizens’ energy, demand flexibility and smart network operations remain a concern;

AddedO. whereas although recycling meets between 40 % and 55 % of Europe’s aluminium and copper needs, further measures to extend recycling capacity, waste collection and supply chain efficiency must be considered;

AddedP. whereas the Commission and High Representative’s joint communication entitled ‘EU Action Plan on Cable Security’ highlights the importance of ensuring the secure supply of spare cable parts and the stockpiling of essential material and equipment;

AddedQ. whereas the electricity system blackout experienced in the Iberian Peninsula and parts of France on 28 April 2025 illustrated how important it is to increase the energy grid’s resilience by ensuring that it is well maintained, protected and balanced at all times, including through flexible system services and enhanced cross-border interconnections, to allow for an agile recovery in the event of system failure;

AddedR. whereas national and regional level system operators hold important responsibilities, particularly in the area of energy supply security; whereas all tasks of a regulatory nature should be performed by regulatory agencies acting in the public interest; whereas, however, alongside these responsibilities, a strengthened role for regulators and ACER in the planning processes can contribute to addressing shortcomings, such as ENTSO-E’s current 10-year network development plan (TYNDP) grid planning, as identified in the grid monitoring report; whereas, while acknowledging the TSOs’ responsibilities in drawing up these scenarios, ACER’s early involvement in the drawing-up process could help to ensure that the guidelines for the drawing-up of the scenarios are followed in accordance with the TEN-E Regulation;

AddedS. whereas interconnection development will contribute to further integrating the EU electricity market, which not only increases system flexibility and resilience, but also unlocks economies of scale in renewable electricity production;

AddedT. whereas the energy workforce will need to increase by 50 % to deploy the requisite renewable energy, grid and energy efficiency technologies;

AddedU. whereas small and medium-sized enterprises (SMEs) are the backbone of the EU’s economy, entrepreneurship and innovation, comprising 99 % of businesses, providing jobs to more than 85 million EU citizens and generating more than 58 % of the EU’s GDP;

AddedV. whereas increasing decentralised electricity generation and demand response are important to reduce reliance on centralised production, which may be easily targeted by physical threats or cyberthreats, or compromised by climate-related events;

Added1. Calls on the Member States to fully explore, optimise, modernise and expand their electricity grid capacity, including transmission and distribution; considers electricity grids to be the central element in the EU’s transition to a competitive, net zero economy by 2050, one that is capable of accommodating high volumes of variable renewable energy technologies and/or evolving demand sources driven by increased levels of electrification and the advancement of digital technologies; notes the Member States’ prerogative to determine their own energy mix;

Added2. Calls on the Commission, the Member States, ACER, EU DSO Entity and ENTSO-E to implement the actions of the EU grid action plan, the action plan for affordable energy, the reform of the EU’s electricity market design and the Renewable Energy Directive without delay;

Added3. Points out that the completion of the EU’s energy market integration will save up to EUR 40 billion annually, and that a 50 % increase in cross-border electricity trade could increase the EU’s annual GDP by 0.1 %;

Relevance of electricity grids for the European energy transition

Change 4

Changed3.4. Welcomes the Commission’s communication on grids; underlines the expected increase in electricity consumption of 60 % by 2030, the rising need to integrate a large share of variable renewable power into the grid, and the need for grids to adapt to a more decentralised, digitalised and flexible electricity system, including the optimisation of system operations and the full utilisation of local flexibility resources, demand response and energy storage solutions to complement wholesale markets and enhance grid resilience, resulting in an additional 23 GW of cross-border capacity by 2025 and a further 64 GW of capacity by 2030; notes that over 40 % of the Union’s distribution grids are over 40 years old and need to be updated;

Change 5

Changed4.5. Reiterates that, by 2030, the Union needs to invest around EUR 375EUR375 to 425 billion425billion in distribution gridsgrids, andand, overall, EUR 584 billionbillion, in transmission and distribution electricity grids, including cross-border interconnectors and the adaptation of distribution grids to the energy transition;

Change 6

Removed5. Notes with concern that in 2023 the costs of managing electricity grid congestion in the EU were EUR 4.2 billion and continue to rise, and that curtailment is an obstacle to increasing the share of renewable energy sources;

Added6. Notes with concern that in 2023 the costs of managing transmission electricity grid congestion in the EU were EUR 4.2 billion and continue to rise, and that curtailment is an obstacle to increasing the share of renewable energy sources; notes that this figure does not include the distribution electricity grid; stresses that in 2023 nearly 30 TWh of renewable electricity were curtailed across several Member States due to insufficient grid capacity; further notes the sharp increase in annual hours of negative electricity prices, rising from 154 in 2018 to 1 031 as of September 2024, largely driven by grid congestion at borders, and the lack of sufficient storage, flexibility and demand response in the electricity market to temporally match variable renewable electricity supply with electricity demand; stresses that addressing these issues could help to absorb surplus supply, thereby maximising the use of existing grid infrastructure, but that existing market and regulatory frameworks often fail to provide adequate incentives for achieving this;