- 1,700 GW of renewables stuck in grid connection queues across 16 countries
- €7.2bn of renewable power wasted across seven countries in 2024
Story
A new report by Beyond Fossil Fuels, E3G, Ember and the Institute for Energy Economics and Financial Analysis reveals that Europe’s electricity grid is failing to keep pace with the renewable power transformation despite pockets of good practice. Outdated planning and obsolete mandates are slowing the upgrade and build-out of Europe’s electricity highways, delaying the connection of renewable and flexibility projects which can make energy clean and more affordable.
With the EU announcing its roadmap to phase out remaining Russian fossil fuels, grids will be essential not only to unlocking the homegrown renewables and electrification needed to end Europe’s reliance on imported fossil fuels, but also to advancing the decarbonisation of Europe’s economy with cost-effective sources of power.
The analysis of 32 electricity transmission system operators (TSOs) across 28 countries finds that many are still using outdated scenarios rooted in old government targets and market assumptions. These scenarios do not reflect the exponential growth in renewables on the ground and act as a systemic handbrake on building a flexible grid capable of absorbing increasingly high shares of renewables. The recent power outage in the Iberian Peninsula served as a reminder of the critical importance of grid upgrades and governance as the cornerstone of energy resilience.
The report warns that unless grid planning rules and mandates of TSOs and regulators are updated, Europe risks a self-fulfilling prophecy whereby fossil gas appears ‘necessary’ simply because grid operators never adequately planned for a power system based on renewables. Grid modernisation is essential to support the electrified economy of the future. The report’s authors call for more robust governance and oversight from governments and regulators, to ensure that grid planning, operations and investments are fit-for-purpose.
Key findings
- 1,700 GW of renewable energy projects across 16 countries are stuck in grid connection queues, over three times the capacity additions needed to reach EU energy and climate targets for 2030.
- €7.2 billion in renewable electricity was curtailed across just seven countries in 2024, meaning clean energy was wasted, while power generators were still compensated, with the costs falling on electricity bill payers.
- Only five TSOs are considering scenarios for a power system where coal and fossil gas are replaced with renewables by 2035, despite 13 countries aiming for decarbonised power sectors in the same timeframe.
- Many TSOs and energy regulators are yet to reference the climate crisis among their responsibilities, with just 13 of the TSOs having any form of commitments or targets on climate. Among the countries studied, the UK is showing leadership with its new, fully independent energy system operator and corresponding ‘net zero’ duty for its energy regulator.
14 of the 23 TSOs we focused on in financial analysis are rated investment-grade by leading credit rating agencies, which could help increase their ability to raise capital. Meanwhile 11 have issued green bonds that have received third party review.
