Europe will need to invest 584 billion euros ($637 billion)to upgrade its power grids this decade, according to European Union estimates. Many grids are decades old and need to be adapted from the traditional model of large, fossil fuel power plants to wind and solar power generation.
A draft seen by Reuters said that Brussels will grant “projects of common interest” status to 68 electricity projects, granting them access to faster permits and certain EU funds. A dozen of the projects are for energy storage.
“Grids need to adapt to a more decentralised, digitalised and flexible electricity system with millions of rooftop solar panels and local energy communities sharing resources,” the draft said.
Brussels will also work with investors, regulators and credit agencies to make it easier for grid projects to secure loans, equity and guarantees while also exploring new financing instruments with the European Investment Bank.
Europe’s electricity industry has warned that power grids are becoming a bottleneck to clean energy provision because grids are not being upgraded fast enough to cope with all the renewable energy projects waiting to plug into the network.
The draft document was previously reported by Bloomberg News.
($1 = 0.9168 euros)
Reporting by Kate Abnett Editing by David Goodman – Reuters