EU Member States Pave the Way for Faster Network Expansion
EU member states want to speed up the permitting process, cut red tape, and accelerate the cross-border expansion of power grids
June 26, 2026
Source: E & M powernews
EU energy ministers have agreed on their position regarding the European Grid Package. It is intended to speed up permitting processes and drive the expansion of Europe’s power grid.
The energy ministers of the European Union haveagreed on the so-called General Approach to the European Grid Package. In doing so, the Council established its negotiating position on June 26 for the upcoming talks with the European Parliament. The goal of the legislative package is to accelerate the expansion and modernization of Europe’s energy infrastructure and to better align the power grids with the requirements of the energy transition.
According to the Federal Ministry for Economic Affairs and Energy (BMWE), the grid package is intended to simplify approval procedures for power lines and cross-border energy infrastructure and to create a framework for more efficient European grid planning. In addition, the package is intended to reduce bureaucracy by providing legal certainty for so-called customer-owned installations. These include, among other things, tenant electricity models as well as shared electricity supply models in industry, commerce, and the housing sector.
Grids: The Foundation of the Energy Transition
Federal Minister of Economics Katherina Reiche (CDU) described the power grids as a central prerequisite for the energy transition. “The power grids form the operating system of the energy transition,” she said on the sidelines of the meeting in Luxembourg. That is why Europe must significantly accelerate grid expansion.
According to the European Commission, more than one trillion euros in investment will be needed by 2040 to expand the power grids.
EU Energy Commissioner Dan Jorgensen pointed out that even today, significant amounts of renewable energy cannot be fed into the grid because the infrastructure is not sufficiently developed. One example is bottlenecks in electricity transmission between Denmark and Germany.
Speeding Up Permits
The Council’s position calls for, among other things, faster and more transparent permitting procedures. Member states are to set up digital application portals and, as a general rule, treat power grid and renewable energy projects as projects of overriding public interest. In addition, member states may in the future stipulate that a lack of response from authorities at individual stages of the process shall be deemed approval.
Furthermore, EU member states aim to coordinate cross-border grid planning more closely. A joint scenario will be used in the future to determine the need for electricity, hydrogen, and gas infrastructure. According to the Council’s proposal, national energy and climate plans as well as regional specificities must be taken into account in this process.
Congestion Revenue for Financing
Another component of the grid package concerns the financing of cross-border transmission lines. In the future, a growing share of unused congestion revenue from electricity trading will be gradually channeled into projects that reduce grid congestion between member states.
In addition, the energy ministers have created a new category of priority infrastructure projects designed to enhance the security and resilience of existing power grids. Among other things, this category is intended to facilitate investments in measures to counter sabotage as well as physical and cyberattacks.
Following the adoption of the general approach, trilogue negotiations will begin between the Council, the European Parliament, and the European Commission. According to the Council, the goal is to reach a political agreement by 2026 if possible.
Energy Association Calls for Less Bureaucracy
The German Association of Energy and Water Industries (BDEW) generally welcomed the agreement. Chief Executive Kerstin Andreae stated that accelerated approval procedures, demand-based grid planning, and investment security are important prerequisites for the expansion of energy infrastructure.
At the same time, she called for avoiding additional bureaucracy and for greater consideration of national and regional specificities in European grid planning. From the association’s perspective, the regulations for accelerating approval procedures must also be designed in a uniform and practical manner across various legal acts.
The draft on EU electricity grid infrastructure is available as a PDF in English.
Author: Susanne Harmsen