More than one-third of Europe’s low-voltage electricity networks are already over 40 years old, and without decisive action that share could rise to 90% by 2050. Eurelectric, the association representing the European electricity industry, warns that the continent’s climate and energy goals are in jeopardy unless network expansion, modernization and digitalization accelerate significantly.
Ahead of the expected adoption of the EU Network Action Plan in December, Eurelectric has submitted a set of priority measures to Brussels aimed at ensuring that Europe’s grids can support the continent’s rapid electrification. The association’s top request is the establishment of a predictable and stable regulatory framework that provides competitive returns on network investments and attracts private capital. It also emphasizes the need to simplify permitting procedures and shorten public procurement timelines.
Eurelectric argues that future network-development scenarios should be based on regional and local needs rather than applying uniform assumptions across all markets. The organization estimates that investment in distribution networks will need to double over the next 25 years. According to its 2023 report, upgrading EU27 and Norwegian distribution networks will require roughly €67 billion per year until 2050.
While network tariffs will remain the primary source of financing, Eurelectric insists that additional support from EU funding instruments such as the Connecting Europe Facility will be essential. The association also calls for EU rules on critical-infrastructure protection to explicitly account for the rising costs distribution system operators face in strengthening resilience and cybersecurity.
Eurelectric warns that Europe could fall short of its targets for renewable energy deployment, industrial and transport electrification, and overall decarbonization if structural barriers are not addressed. Around 70% of new renewable generation capacity connects directly to distribution networks, as do most businesses and household consumers. Failure to secure the necessary investments by 2050 could leave Europe with 190 million fewer heat pumps, 120 million fewer electric vehicles, and 1,220 GW less solar capacity than planned.
