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Eurelectric: Double investments in power distribution or lose Europe's race to net-zero
To relieve the strain, annual investments into new and modernised infrastructure, including digitalisation, should reach €67 billion from 2025 to 2050, around 0.4% of EU GDP. Forward-looking grid strategies such as anticipatory investments, optimal asset management and grid-friendly flexibility could lower this to €55 billion per year if properly implemented. Failure to invest would jeopardise 74% of prospective connections in key decarbonisation technologies such as electric vehicles (EVs), heat pumps and renewables. Investing, on the contrary, will accelerate electrification and help the EU save €309 billion every year on fossil fuel imports from 2040 to 2050.
"For a successful energy transition the EU needs massive amounts of additional grid capacity. Investment volumes for distribution system operators needs to double. Whilst this will require a significant ramp up, the cost of not investing is even higher. To succeed we need attractive returns for investors to be able to finance it, technology and fast electrification to manage the distribution fees." says Eurelectric's President and E.ON CEO Leonhard Birnbaum .
Scaling grid investments requires a dual effort. National authorities should implement the agreed legislation – such as anticipatory investments – while adapting the regulatory regime to support the investment surge. This means eliminating investments caps, fast-tracking grid permitting and procurement procedures and de-risking investments to spur private funding while opening up of public financing through EU budget.
Futureproofing the grid also depends on the supply chain. Even if necessary investments are met, current shortages of copper, a talent deficit, extended manufacturing lead times and transformers' costs can hamper infrastructure development. Such bottlenecks must be addressed through strategic planning, enhanced collaboration between policymakers and industries and new training initiatives to ensure a skilled workforce.
Eurelectric calls on policymakers both at national and regional level to secure grid investments, strengthen supply chains and unleash the societal benefits of Grids for Speed.
View original content:https://www.prnewswire.co.uk/news-releases/eurelectric-double-investments-in-power-distribution-or-lose-europes-race-to-net-zero-302149302.html