€7.2 billion of renewable energy generation lost by 2024 due to lack of transmission capacity
European transmission operators are not prepared to respond to the energy transformation needed to meet 2030 climate targets, according to a report by Beyond Fossil Fuels in collaboration with E3G, Ember and the Institute for Energy Economics and Financial Analysis (IEEFA), which analysed the practices and plans of 32 transmission operators in 28 countries. The study concludes that Europe’s electricity grids remain a major obstacle to the deployment of clean energy, with 1,700 GW of renewable energy blocked in connection queues, i.e. waiting to be integrated into the system. This figure is more than three times more than is needed to meet the European Union’s 2030 climate and energy targets. The data was provided by the analytical website Strategic Energy.
The report notes that in 2024, 7.2 billion euros of renewable energy generation was cut in seven European countries alone due to grid capacity constraints. This situation not only paralyzes millions of dollars in investment, but also compromises the continent’s energy security by maintaining a heavy reliance on fossil fuels. “Europe needs a massive expansion of its electricity grid to increase renewable energy generation, boost economic growth and free itself from risky fossil fuel markets,” says Juliette Phillips, campaigner for Beyond Fossil Fuels.
Despite this context, most European electricity transmission operators still foresee a significant share of gas in their scenarios until 2035, which runs counter to decarbonization goals. Only five operators have modelled a fully renewable system to date, and only 13 have specific climate commitments or targets included in their roadmaps. This gap between the climate emergency and infrastructure planning has led the organisation to issue a series of specific recommendations to national governments.
Among these, the report highlights the need to review the legal mandates of electricity transmission operators and energy regulators to ensure that they are aligned with climate objectives, as well as to establish fully independent public authorities for electricity grid planning, capable of avoiding conflicts of interest and adopting a long-term vision. In this regard, the report cites as an example the United Kingdom, where the National Energy System Operator (NESO) was created as an autonomous entity responsible for system planning, separate from the electricity grid operator National Grid.
The case of Poland is also highlighted, where market reforms implemented in 2024 have allowed the inclusion of demand-side flexibility signals through new tariffs, and storage has benefited from fossil fuel technologies thanks to capacity contracts. Meanwhile, Denmark has enabled more than 550 organisations, including swimming pools, kindergartens, ice rinks and heavy industry, to participate in balancing the electricity grid thanks to reforms implemented by the operator Energinet. “Thanks to the reforms of TSO Energinet, 550 organisations offer services to the electricity grid and benefit from more business opportunities and a balanced market,” the report highlights. The key to a clean, secure and affordable energy system is to increase storage capacity, flexibly manage demand and prioritise the connection of already operational renewable energy projects, the document insists. To achieve this, transmission operators need to adopt best practices and take a more active role in the energy transformation. “Giving transmission operators and their regulators a climate mandate can ensure that they make the long-term investments and decisions needed to secure the future of our energy system,” warns Phillips.
The warning is clear: without rapid, planned and sustainable expansion of the electricity grid, Europe will not be able to meet its climate commitments, harness the economic potential of renewables or reduce its dependence on fossil fuel imports. The energy transformation is on track, but electricity grids are not yet ready for it.
Illustrative Photo by Pixabay: https://www.pexels.com/photo/blue-solar-panel-board-356036/
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First published in this link of The European Times.
