ENTSO-E welcomes the focus on infrastructure challenges, raises concerns over governance proposals

ENTSO-E welcomes the European Commission's strong focus on the importance of electricity grids to meet EU objectives. The European Grids Package, published today, marks a long-awaited recognition of the structural challenges grid development has been facing for years.

ENTSO-E appreciates the Package's ambitious recommendations to accelerate permitting by elevating the public interest status for grids, shortening approval processes and simplifying requirements. ENTSO-E also shares the European Commission's concerns over the "unprecedented pressure on supply chains, labour availability and skill", and looks forward to contributing to more dedicated initiatives aimed at addressing these challenges. These will all be key elements to help Europe progress toward a secure, affordable and low-carbon power system.

ENTSO-E also supports the proposed shift from a "first-come, first-served" approach to "first-ready, first-served" when it comes to the management of grid connection requests.

At the same time, ENTSO-E regrets that the Package falls short on the expectations to simplify the existing framework. On the contrary, complex and lengthy processes are proposed on the planning and implementation of projects. ENTSO-E is concerned that the foreseen governance changes will not speed up the delivery of grid infrastructure which Europe urgently needs.

In particular, ENTSO-E is concerned by the proposals to:

• create a single scenario for the planning of the whole of Europe without complementary bottom-up studies that take into account Member States Plans;
• delegate the methodology of identification of the system needs to an EU Agency (ACER) out of national operators expertise;
• allow the unilateral call for infrastructure projects by the European Commission, with the risk of circumventing Member States' decision-making.

These provisions risk disconnecting European planning from national realities and security concerns, as well as from the local communities where the infrastructure will be located.

ENTSO-E also urges the reconsideration of the newly proposed requirement on TSOs to set aside 25% of congestion revenue for projects on the Union List. TSOs already use these funds to lower consumers' tariffs, enhance network capacity, or enable grid development under the full oversight of national regulatory authorities. Overall, ENTSO-E considers that the Package could have elaborated on more cooperative changes to the cost-sharing framework, for which we need urgent solutions.

Energy is a shared competence between the EU and Member States. To ensure the Package delivers on its ambitions, the key is more cooperation - not more centralisation.

ENTSO-E is fully committed to working with the European Commission, Member States, the European Parliament, and all stakeholders in the months ahead. We stand ready to contribute with our expertise to ensure Europe's grid planning and development framework remains robust and realistic. Together, we can build the electricity infrastructure aimed at ensuring Europe's security, competitiveness, and climate objectives.