Electricity grids: Key policy actions
Summary
The document argues that power grids must become the backbone of the energy system to achieve a carbon-neutral economy by 2050, transporting 50% or more of Europe's energy. It identifies critical barriers including underinvestment, lack of data transparency, inefficient connection queues, and fragmented system planning. Ember recommends shifting to a "first ready, first served" approach for grid connections, introducing clear investment incentives, and establishing an integrated, system-level planning framework coordinated by an independent body to ensure grid development anticipates rather than lags behind clean energy growth.
Key insights
- Power grids are projected to transport 50% or more of Europe's energy by 2050 as part of the transition to a carbon-neutral economy.
- There is a significant investment gap in distribution grids; while REPowerEU estimates needs at €583.8 billion by 2030 (with €400 billion for distribution), current spending by DSOs in EU27+UK countries is only €25 billion annually, falling short of the €34-39 billion needed by 2030.
- In Poland, incomplete market unbundling has led to conflicts of interest where DSOs are integrated with fossil fuel producers, contributing to 51 GW of grid connection declines in 2022, a 253% increase over 2021.
- Substantial renewable energy capacity is stalled in connection queues across Europe, with Spain and Italy having nearly 200 GW of wind and solar waiting and France having nearly 50 GW.
- Current power system planning is fragmented across separate processes for generation, transmission, flexibility, and electrolysers, which prevents the identification of the most efficient system-level solutions and risks derailing national climate ambitions.
- Ember recommends reforming grid connection queues by moving from a "first come, first served" model to a "first ready, first served" cluster approach, similar to the US Federal Energy Regulatory Commission (FERC) model.
- To improve coordination, Ember suggests an independent central coordinator for power system planning, potentially utilizing national regulators and ACER to avoid creating a new institution.
Cite the original document
- APA
- Czyzak, D. P., & Cremona, E. (2022). Electricity grids: Key policy actions. Ember. https://ember-energy.org/app/uploads/2023/10/Electricity-grids-Key-policy-actions.pdf
- Chicago
- Czyzak, Dr. Pawel, and Elisabeth Cremona. Electricity grids: Key policy actions. Ember, 2022. https://ember-energy.org/app/uploads/2023/10/Electricity-grids-Key-policy-actions.pdf.
- Wikipedia
- {{cite report |last1=Czyzak |first1=Dr. Pawel |last2=Cremona |first2=Elisabeth |title=Electricity grids: Key policy actions |publisher=Ember |date=26 October 2022 |url=https://ember-energy.org/app/uploads/2023/10/Electricity-grids-Key-policy-actions.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{czyzak2022electricity, author = {Czyzak, Dr. Pawel and Cremona, Elisabeth}, title = {{Electricity grids: Key policy actions}}, institution = {Ember}, year = {2022}, month = oct, url = {https://ember-energy.org/app/uploads/2023/10/Electricity-grids-Key-policy-actions.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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