Changes from report parliamentary committee draft to plenary report

Added47. Highlights the importance of minimising the additional costs on consumers’ bills resulting from the investments required to deliver the grid modernisation and expansion needed to meet the EU’s climate and competitiveness goals; asks the Commission to work with the Member States to develop a coordinated set of best practices for investments and equitable network tariff composition, with a strong emphasis on increasing transparency and removing non-energy related charges from the tariffs;

Added48. Points out that transmission infrastructure and availability of cross-zonal capacities are vital for an integrated market and for the exchange of low-marginal cost renewable energies, while respecting system security; notes that the EMD Regulation sets a minimum 70 % target of capacities available for cross-zonal trade by 2025 but Member States are far from reaching it; therefore urges the Member States and their TSOs to speed up their efforts to maximise cross-zonal trading opportunities, to ensure an efficient internal electricity market, appropriate investment decisions and renewable energy integration; regrets that achieving this target has often resulted in re-dispatch costs; notes that existing cost sharing mechanisms, such as cross-border cost allocation (CBCA), inter-transmission system operator (TSO) compensation and re-dispatching cost sharing, are limited and difficult to implement, which does not encourage cross-border investments, such as in offshore grids; calls on the Commission to holistically review and improve these mechanisms to ensure that they reflect the shared benefits of infrastructure and address the diversity of electricity flows, whether internal or cross-border, including a fair and balanced cost-benefit sharing mechanism for cross-border infrastructure projects that is based on objective criteria;

Added49. Takes note of the report of April 2025 by ENTSO-E on potential alternative bidding zone configurations based on location marginal pricing simulations provided by TSOs;

AddedGrid-enhancing technologies, digitalisation, innovative solutions and resilience

Added50. Underlines that grid-enhancing technologies, digital solutions, ancillary services and data management technologies, as well as smart energy appliances, often leveraging artificial intelligence, can significantly increase the efficiency of existing grid capacities and maximise the use of existing assets, reducing the requirement for new infrastructure, for instance by providing real-time information on energy flows; therefore insists that these technologies and innovative solutions must be explored; urges NRAs to incentivise TSOs and DSOs to rely more on such technologies, weighing up the costs and benefits of their use versus grid expansion and by using remuneration schemes based on benefits rather than costs, and to benchmark the TSOs and DSOs on their uptake of such technologies; invites the Commission to further promote such innovative technologies when assessing projects that apply for EU funding;

Added51. Welcomes the work accomplished by ENTSO-E and the EU DSO Entity in developing the TSO/DSO Technopedia so far, and calls on the Commission to mandate the biannual updating of the Technopedia to accurately reflect the technology readiness levels (TRLs) of technologies included;

Added52. Urges the Commission and the Member States to further enable and increase the digitalisation of the European electricity system, enabling the optimisation of the operation of its power system and reducing pressure on the supply chain; underlines that data sharing and data interoperability are essential for grid planning and optimisation; encourages the Member States, the NRAs, the EU DSO Entity and ACER to continue to accelerate their work on the monitoring system based on indicators measuring the performance of smart grids (‘smart grid indicators’), as set out in the Electricity Directive;

Added53. Stresses the urgent need to enhance the security of critical electricity infrastructure, including interconnectors and subsea cables at risk of sabotage, and increase its resilience to extreme weather events, climate change and physical and digital attacks; highlights the need to strengthen cooperation at national, regional and EU levels;

Added54. Stresses the growing risk of coordinated cyberattacks targeting the EU’s entire electricity network; recalls the importance of the rapid implementation of cybersecurity and other related network codes and the related legislation, such as the NIS 2 Directive and the Cybersecurity Act, and encourages the Commission to correct, in upcoming legislative reviews, the status of physical grid equipment, including remotely controllable grid equipment, such as inverters, which is currently not held to a high enough cybersecurity standard, especially in cases where the manufacturer is required, under the jurisdiction of a non-EU country, to report information on software or hardware vulnerabilities to the authorities of that non-EU country; calls for enhanced EU level cooperation between all parties to strengthen preparedness and resilience; considers that NRAs should acknowledge the costs incurred by operators in adopting cybersecurity and resilience measures, and provide incentives for investments pertaining to increasing the resilience of the energy infrastructure to cyberthreats, and physical and hybrid threats, including climate adaptation measures;

Added55. Underlines the need to step up efforts to protect existing and future critical undersea and onshore energy infrastructure; considers that the EU should play a broader role in preventing incidents that threaten this infrastructure, in promoting surveillance and in restoring any damaged infrastructure using state of the art technologies; calls on the Commission and the Member States to find solutions to increase the protection and resilience of critical infrastructure, including solutions to financing such measures and technologies;

Added56. Recognises that new high-voltage electricity grid projects provide a multifunctional and cost-efficient opportunity to integrate additional security measures (i.e. sensors, sonar, etc.) and environmental solutions (i.e. bird deflectors, fire detectors, nature corridors, etc.) if planned in a holistic manner; asks the Commission to develop guidelines for NRAs to ensure that initial grid project planning is carried out and financed with these elements in mind;

Added57. Urges the Commission, DSOs and TSOs to develop an EU-owned Common European Energy Data Space, based on technical expertise and practice utilising the available data and based on a common set of rules ensuring the secure, transparent portability and interoperability of energy data, where harmonised data is safely managed, exchanged and stored in the EU; stresses that this Common European Energy Data Space should facilitate data pooling and sharing through appropriate governance structures and data sharing services, supporting critical energy operations including transmission and distribution; underlines that European TSOs, DSOs and other previously screened electricity grid actors must be able to securely and smartly operate the grid, optimising its use by integrating flexibility and innovative technologies, in line with key principles of interoperability, trust, data value and governance; notes that data exchange arrangements must also take into account interactions with non-EU parties;

Added58. Recognises the potential of flexibility as a necessary tool for optimising system operations, maintaining the stability of the system and empowering consumers by incentivising them to shift their consumption patterns; stresses the importance of implementing appropriate measures to guarantee efficient price signals that incentivise flexibility, including from all end-consumers, and ensuring that all resources contribute to system security, including by accelerating the deployment of smart meters, smart energy-efficient buildings, and enabling access to data from all metering devices; asks NRAs to recognise flexibility innovations and pilot projects in the system, insofar as these do not negatively impact the grid’s overall balance and stability, in order to continue incentivising innovation;

Added59. Calls on NRAs to work closely with TSOs and DSOs to assess the flexibility potential, and needs of the national systems in current and future planning, taking into consideration the presence of industry, large consumers, large generators and storage; highlights in particular the critical role that storage assets, including long-duration electricity storage, capable of providing up to 100 hours of electricity, can play in providing congestion management services to the grid; notes that in order to provide these essential system services, investors in storage assets require stable, long-term revenue models, similar to the way in which support schemes have successfully provided revenue certainty for renewable generation assets;

AddedSupply chain, raw materials and the need for skills

Added60. Notes with concern that global growth in the demand for grid technologies has put pressure on supply chains and the availability of cables, transformers, components and critical technologies; highlights the findings in the February 2025 International Energy Agency report, ‘Building the Future Transmission Grid’, that it now takes two to three years to procure cables and up to four years to secure large power transformers, and that average lead times for cables and large power transformers have almost doubled since 2021;

Added61. Is concerned about the long lead times for many grid technology components and remains determined to maintain European technology leadership in grid technology, emphasising the need for innovation to develop, demonstrate and scale European high-capacity grid technologies and innovative grid-enhancing technologies;

Added62. Stresses that critical and strategic raw materials are essential for grid infrastructure, with aluminium and copper demand set to rise by 33 % and 35 % respectively by 2050; takes note of the Commission decision recognising certain critical raw materials projects as strategic projects under the Critical Raw Materials Act, in order to secure access to these key materials and diversify sources of supply; calls on the Commission and the Member States to enhance recycling, and support strategic partnerships and trade agreements to this end;

Added63. Highlights the need to strengthen grid supply chains to increase the supply of grid technologies at affordable costs, and thereby limit the costs borne by consumers via network charges; calls for a strategic approach to acquiring energy technologies, components or critical materials related to grids, in order to avoid developing dependencies on single suppliers outside of the EU;

Added64. Believes that holistic, coordinated, long-term grid planning across the entire European energy system is needed to solve the supply chain capacity bottleneck, and that such planning provides manufacturers with essential transparency and predictability for adequately planning manufacturing capacity increases; considers that such planning must be reliable and enable new business models, such as long-term framework agreements and capacity reservation contracts;

Added65. Urges the maximum standardisation of key electricity grid equipment, insofar as is technically possible, via a joint technical assessment by the Commission, DSOs, TSOs and industry, covering all voltage levels in order to scale up production, lower prices and delivery times, and promote the interoperability of systems;

Added66. Stresses the urgent need to address labour shortages in the energy sector; notes that the Commission has projected that the energy workforce needs to significantly increase in order to deploy renewable energies, upgrade and expand grids, and manufacture energy efficiency, grid and other relevant technologies; regrets the shortages of electrical mechanics and fitters reported in 15 of the Member States, increasing the staffing needs of DSOs and TSOs; highlights that the energy workforce must grow by 50 % by 2030 to support the deployment of renewables, grid expansion and energy efficiency, with an estimated 2 million additional jobs required in electricity distribution by 2050; calls for training, upskilling and reskilling initiatives, prioritising grid-related skills to close skills gaps; welcomes university-business partnerships and targeted EU skills academies for strategic sectors, including grids; encourages DSOs and TSOs to diversify their workforce, including by increasing women’s participation;

Added67. Reiterates that the Member States and the EU should cooperate to adapt the relevant skills programmes and develop best practices to fulfil the growing skills demand across all educational levels, with a strong emphasis on encouraging gender balance in the sector;

Added68. Highlights the crucial role of SMEs and EU businesses in supplying the technology sector for the electricity grid; points out the need to access affordable electrification, limiting the costs related to the supply chain and ensuring a skilled workforce;

AddedOffshore

Added69. Acknowledges the strategic relevance of offshore development in delivering the EU’s objectives of energy autonomy, increased use of renewable energy, a resilient and cost-effective electricity system and climate neutrality by 2050; stresses the importance of fully utilising the potential of Europe’s five sea basins for offshore energy generation; highlights the particular significance of the North Seas (covering the geographical area of the North Seas, including the Irish and Celtic Seas), which offer favourable conditions and the highest potential, with an agreed target of 300 GW of installed offshore generation capacity by 2050 within the framework of the North Seas Energy Cooperation; welcomes the progress made in this regard; emphasises the need to develop a meshed offshore grid, including hybrid interconnectors, particularly in the North Seas, to fully harness offshore potential and improve electricity market integration; calls on the Commission and the Member States to strengthen regional cooperation on grid planning and energy cooperation across all sea basins with the EU’s neighbouring countries, in particular the UK and Norway, specifically in offshore wind energy development and the planning and manufacturing of electricity grids;

Added70. Highlights the need for a stable and predictable regulatory framework that ensures the most optimal trading arrangements to provide the required investor confidence to support the development and interconnection of offshore grid and offshore wind projects, ensuring market efficiency and efficient cross-border flows, including with non-EU countries; underlines the necessity of strengthening national grids where required to maximise the benefits of offshore energy; acknowledges that combining offshore transmission with generation assets (offshore hybrids) will be an integral part of an efficient network system, as this comes with several advantages for the European energy system but still lacks the right regulatory framework to incentivise necessary investment;

AddedCooperation with non-EU countries

Added71. Calls on the Member States to increase cooperation and coordination with like-minded non-EU countries such as Norway and the UK; recalls that the development of electricity infrastructure to harness the offshore wind potential of the North Seas is a shared priority for both the EU and the UK;

Added72. Highlights the need for a pragmatic and cooperative approach to EU-UK electricity trading; calls on the Commission to work closely with the UK administration to agree on a mutually beneficial trading arrangement that strengthens security of supply and the pathway to net zero for both jurisdictions; additionally, believes that efficiencies of trading arrangements can be improved further; calls on the Commission to engage with its UK counterparts constructively on this matter;

AddedOutermost regions

Added73. Stresses the unique challenges faced by the EU’s outermost regions and other areas not connected to the European electricity grid; highlights their reliance on imports and high vulnerability to electricity blackouts and extreme climate hazards; notes the importance of developing resilient and autonomous energy systems through local grid development and cleaner energy production; calls on the Commission to address these regions’ specific needs in the European Grids Package and to propose additional financial support to improve the autonomy of their energy systems, and address their lack of interconnection and absence of broader grid connection benefits;

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74. Instructs its President to forward this resolution to the Council and the Commission.