PKEE strongly welcomes the European Parliament's own initiative to prepare a report on grids. The appropriate conditions for the timely development of electricity grids are key both for the security of supply and for the European Union's clean, affordable, and just energy transition by enabling new connections, avoiding congestion, and ensuring the system's safe operation.

PKEE suggests acknowledging that:

• Properly developed infrastructure for transmitting electricity is crucial for huge power projects like offshore wind farms and nuclear power plants, as well as to enable cross-zonal exchange. However, about 70% of future renewable generation and electricity storage will be connected to the distribution grid[1]
• System operators’ operational environment is rapidly changing due to i.a.: the swift development of distributed energy sources (DER), the bidirectional flow of energy, innovations, digitalization, electrification, and new grid flexibility needs. Thus, the role of electricity distribution system operators (DSOs) is evolving. DSOs are not only responsible for safe electricity distribution but have also become market facilitators delivering energy transition under new operational conditions of decentralized energy systems.
• The development of DER and electrification leads to more requests for new connections, both from generation and demand, which significantly strains the grid and its development needs. This trend is expected to develop fast with new investments in data centers, AI, and other energy-intensive ICT infrastructure.
• It is necessary not only to develop new network infrastructure but also to modernise the existing one, adapting it to new challenges using innovative solutions while incentivising energy efficiency, flexibility, and usage as close as possible to its production.
• Increased investment in the electricity distribution grid is needed. Eurelectric estimates this will amount to around €67 billion annually by 2050 (for the EU27 and Norway)[2]

PKEE recommends to:

• Underline the crucial role of electricity grids, especially distribution, for energy transition and security of supply.
• Increase the energy system's flexibility by further developing smart grids, energy storage, and demand response.
• Properly implement the actions outlined in the European Commission’s “EU Action Plan for Grids” such as alleviating permitting bottlenecks by simplifying and streamlining permit-granting processes and accelerating work on the new Network Code on Demand Response.
• Focus on resolving connection issues. Many options should be considered, such as forward-looking spatial planning on a national scale and locally, flexible connection agreements, open auctions for available connection capacities, better information from developers on determined projects requiring network capacity in the future (to enable anticipatory investments), and cable pooling.
• • Investments in electricity grids – as a public good – should be prioritised in the next Multiannual Financial Framework. Financial support is necessary, especially in distribution at regional and local levels, and also to enable investments on the SMEs and individual households levels in renewable energy and storage facilities. This is the best way to guarantee that people in regions not only bear the transition costs but can also benefit from lower energy costs. In addition, appropriate tariff design has to ensure sufficient conditions for investments.

[1] Eurelectric RaportGrids for Speed2024

[2] Ibid.