The article acts as a witness to Europe’s newfound interest in the grid’s challenge, which later materialized with policy proposals in the Grids Action Plan and Grids Package.

Integrating 100 gigawatt (GW) of cumulated solar photovoltaic (PV) and wind capacity each year and increasing the electrification rate from 23% to at least 32% by 2030 requires historical investments at every level. According to the European Commission (EC), the European Union (EU) needs to invest €1.2 trillion in electricity grids by 2040. 

At a time of international warfare, shocks on oil & gas markets and heightened climate change impacts, the EC is choosing to double down on the energy transition. This legislative proposal mostly addresses the need for improved EU coordination in grid planning and accelerated permitting. However, crucial parts of the challenge remain, notably ramping up grid supply chains.

The grid buildout is limited by heavy constraints on the electrical equipment supply chains, which feature limited transparency and flexibility in ramping capacity up and down. 

This forces system operators and other market participants to think of ways to optimize those investments, such as by signing long-term framework agreements and operating the system in a flexible way. 

The infrastructure also needs to be built and operated in ways to make it resilient: adapted to climate change, acceptable for communities and prepared for military threats.

The EU’s entire energy transition can succeed or fail based on the continent’s ability to secure materials, build up supply chain capacities, plan, build and connect historical amounts of electricity grids in the next few years. This requires historical levels of coordination among operators, regulators and industry, who have no choice but to get this right, together.