The Grids Package is a vital element in Europe’s journey to net-zero emissions while weaning itself off energy imports. The challenges are massive in terms of integrating the growing share of renewable and other domestic clean energy sources and connecting essential electrification infrastructure, such as storage solutions, EV charging infrastructure, heat pumps and industrial users to the grid.
Notably in its Package, the Commission proposes to assume greater power in trans-European grid infrastructure planning through the development of a so-called “comprehensive central EU scenario” that will be “consistent with EU energy and climate targets”. It also intends “to initiate a “gap-filling” process in cases where cross-border infrastructure needs have been identified, but did not lead to concrete project proposals.
While we support the ambition of centralised planning in a context where many Member States lack sufficient and stable domestic power generation, the concerns are high that this might drive up electricity costs in Member States where they would be otherwise cheaper or impact the electricity generation from existing powerplant infrastructure. The Commission must adequately address these concerns and offer solutions in order to avoid potential backlash against its plans and increase solidarity within Member States.
In order to fasten lengthy permitting procedures, the Commission proposes to put forward an EU-level framework to simplify and accelerate permitting procedures for all grid infrastructure, renewable energy projects, storage projects and recharging stations. It argues that simplified rules should target the cases where environmental impacts are limited.
The Communication remains vague as to which specific legislative elements will be addressed in the context of the framework, but in the public debate, the revision of the Renewable Energy Directive and the Electricity Market Design have been named in particular.
IndustriAll Europe reiterates its position that while we insist on action being taken on fastening permitting, this must not compromise essential environmental and social safeguards. We have repeatedly called on the Commission to address and shorten lengthy permitting procedures by investing in quality public services and quality employment in public authorities, alongside the needed digitalisation of procedures.
The third major element in the Package is the Energy Highways Initiative that intends to address the most urgent energy infrastructure needs through enhanced political coordination.
Where is the money to pay for increased costs?
We are concerned that the Commission does not adequately address the increasing system costs that the grids expansion and modernisation needs will require. As grid infrastructure is largely financed through tariffs, fears of further increasing electricity prices must be adequately addressed.
While the Commission estimates investment needs of EUR 1.2 trillion by 2040 for electricity grids, including EUR 730 billion for distribution grids alone, and EUR 240 billion for hydrogen, the proposed solution of mobilising European funding to derisk private investments in the context of the upcoming Clean Energy Investment Strategy remains vague. While we welcomed the increased funding of the Connecting Europe Facility, this will only benefit cross-border infrastructure.
We believe that public investments will have to be an essential part of the equation. We remain deeply concerned that in a context of tight fiscal rules, public investment in critical infrastructure needs are impossible in a majority of Member States. Therefore, we call for a review of the EU’s Economic Governance Framework to allow countries to spend on critical energy infrastructure needs to ensure that energy remains affordable on our path to net zero, otherwise the backlash will become even stronger.
Quality jobs and skilled workers must not be forgotten!
To our disappointment, the Grids Package does not pay attention to workers and quality jobs in the energy sector. Looking at the findings of the IEA’s World Energy Employment Report 2025, with the increasing electricity demand, employment is expected to grow in the power and grids sector in particular, while employers report a shortage of workers: for every new worker in grids, there are 1.4 workers approaching retirement globally and a ratio of 2.4 workers for every worker retiring in the larger energy sector in advanced economies.
Around 60% of companies are reporting labour shortages, putting at risk timelines, system reliability and cost control, while graduates with energy-relevant training are not keeping pace with rising needs for skilled workers*. The urgency to act is clear. We expect stronger interservice coordination to align the Commission’s Grids Package and Action Plan with strong initiatives to increase the quality of jobs and investment in training and people.
We acknowledge the reflections made on fostering a European grid infrastructure manufacturing supply chain, including through “Made in Europe” criteria in the European Public Procurement framework, and expect the European Commission to deliver strong initiatives on local content requirements and mandatory social conditionalities.
Judith Kirton-Darling, General Secretary of industriAll Europe said: "We welcome the increasing efforts to ensure Europe’s grids infrastructure is rolled out at scale to support the energy transition and strategic autonomy in energy supply and infrastructure, but we need to address persisting funding gaps and ensure sufficient public and private investments are made in infrastructure and in quality jobs in the entire energy value chain.”
* IEA World Energy Employment Report 2025: https://www.iea.org/reports/world-energy-employment-2025/executive-summary