National grid plans in Europe, often based on outdated wind and solar targets, underestimate wind capacity by 27GW and solar by as much as 60GW, according to a report by think-tank Ember.
Europe’s REPowerEU programme also underestimates annual grid investment by at least €5 billion, Ember said, citing analysis of annual spend in the EU of approximately €63 billion – against a European Commission estimate for annual grid investment of €58.4 billion until 2030.
As well as increasing grid investment, Europe must fully align planning processes with ‘the new reality’ of the energy transition, Ember said.
“This must be urgently addressed, particularly as grid developments are characterised by much longer timescales than clean technologies,” it added.
Failure to address grid capacity issues in a timely manner will bring additional costs, it warned. In 2023, Spain spent more to manage its already congested transmission grid than it invested in its development.
The report analysed data related to national electricity transmission networks across 35 European countries (EU-27, Norway, Switzerland, the UK and Western Balkans).
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