The European Commission announced a package of measures aimed at modernising the EU’s energy infrastructure, with the goal of increasing energy independence and reducing energy bills across the Union. The Commission’s European Grids Package and the Energy Highways aims to foster major upgrade and expansion of grid infrastructure, enabling greater integration of renewable energy and accelerating the electrification of key economic sectors.
Climate Commissioner Wopke Hoekstra noted that more than 40% of the EU’s energy grid is over 40 years old, while financial losses caused by grid “congestion” reached €5.2 billion in 2022 alone. He added that these losses could climb to €26 billion by 2030.
The package also has the potential to accelerate the development of hydrogen infrastructure — an area highlighted by Hydrogen Europe, which points to three key elements that could have a positive impact.
The first concerns funding mechanisms to de-risk critical cross-border infrastructure. The Commission recognises the need for instruments that distribute risk between public and private actors until the market reaches a sufficient customer base to cover investment costs. Industry has been tasked with presenting concrete proposals ahead of the 2026 Energy Infrastructure Forum.
The second important point is the Directive on Accelerating Permitting, which foresees streamlined procedures for hydrogen infrastructure. However, it should be noted that the hydrogen backbone is not expected to receive the same level of support as electricity grids, while hydrogen storage is explicitly excluded from simplified permitting.
The third hydrogen-related measure involves integrated planning. With the proposed changes to the Ten-Year Network Development Plan (TYNDP) process, system integration and coordinated planning become central elements of Europe’s infrastructure strategy. The European Network of Network Operators for Hydrogen (ENNOH) is placed on equal footing with the European Network of Transmission System Operators for Electricity (ENTSO-E) when preparing infrastructure needs assessments.
According to Commission estimates, €1.2 trillion in investments will be needed for EU energy grids by 2040, including €240 billion for hydrogen networks. The package proposes a new process for planning cross-border energy infrastructure, with a detailed scenario still to be developed to support implementation of the EU’s long-term goals.
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