Integrated planning could save billions of euros in infrastructure costs

20.11.2025

Source: E & M powernews

An analysis by Fraunhofer Institutes and D-Fine shows that Europe could save enormous costs and accelerate the path to climate neutrality through integrated infrastructure planning.

Optimizing investments in the EU's energy infrastructure could save hundreds of billions of euros between 2030 and 2050. This is the conclusion of an energy system analysis carried out by the Fraunhofer Research Institution for Energy Infrastructures and Geotechnologies (IEG) in collaboration with the Fraunhofer Institute for Systems and Innovation Research (ISI) and the consulting firm "d-fine" on behalf of Agora Energiewende. The study shows that an integrated planning approach could unlock efficiency gains, accelerate the expansion of renewable energies and create the basis for a more resilient energy system.

According to the analysis, more than 560 billion euros could be saved in the period up to 2050 if European countries coordinate their infrastructure planning across sectors and countries. If avoided reserve power plants are included, the potential increases to 750 billion euros. According to the authors, the approach directs investments to where they will bring the greatest benefit and supports a flexible energy system.

Professor Mario Ragwitz, Director of the Fraunhofer IEG and co-author, emphasized that the supply of central consumption sectors with electrical energy and material energy sources is crucial to making the economy and energy system resilient and CO₂-free. Integrated models could identify the most effective investment levers for this, for example in the expansion of the European electricity grid.

Four scenarios are being examined

The analysis is being carried out in advance of the EU Commission's "Grids Package" and was developed together with European partners, including Forum Energii and the Energy Policy Group. The co-director of Agora Europe, Frauke Thies, pointed out the central importance of well-coordinated infrastructure planning in order to align investments with technologies such as solar and wind energy or battery storage and to ensure security of supply.

The Fraunhofer model combines several energy sources and geographical levels in a comprehensive optimization. It examines four scenarios along two dimensions: cross-sector versus sectoral and European optimization versus a more national focus. According to D-Fine expert Paula Hartnagel, this combination allows a reliable assessment of the system and cost effects through integration. Unlike fragmented models, the approach optimizes energy supply, storage and grids together.

The results show that significantly lower capacities would be required in an integrated scenario: 505 GW less reserve capacity, 15 percent less onshore wind and 9 percent less electrolysis capacity. At the same time, all scenarios accelerate the expansion of renewable energies and reduce the use of fossil fuels. The model takes conservative assumptions on energy demand into account and maps solutions for electricity, hydrogen, gas and CO₂ infrastructures. The expansion of the electricity grid remains a priority in all scenarios.

The analysis underlines the central role of electrification for the decarbonization of the European economy. Accordingly, the need for fossil gas pipelines decreases rapidly, while targeted new infrastructures for hydrogen and carbon dioxide are required. The rapid electrification of transport, building heating and industrial low-temperature process heat is seen as a key factor for the transformation.

The 134-page analysis "Integrated Infrastructure Planning and 2050 Climate Neutrality" and a 27-page impulse based on it can be downloaded free of charge from Agora Energiewende.

Fritz Wilhelm