Coordinated energy grid planning could save EU more than 500 billion euros – think tanks

The European Union could save more than 500 billion euros by 2050 by optimising energy infrastructure investments through well-coordinated planning among member states, an alliance of European energy transition think tanks says in a joint analysis. 

“Well-coordinated planning is essential to ensure that investments flow where they best support the deployment of clean technologies like solar, wind and batteries – delivering secure and affordable energy,” said Frauke Thies, co-director for Europe at Germany's Agora Energiewende, which collaborated with Poland's Forum Energii, France's IDDRI, Italy's ECCO and Romania's Energy Policy Group (EPG) to produce the report.

Their analysis finds that an integrated scenario would require 505 gigawatts less back-up capacity, 15 percent less onshore wind capacity, and 9 percent less hydrogen electrolyser capacity than a more nationally focused, sectoral approach. Independent top-down planning is crucial to realise the savings, the researchers say.

The report is based on energy system modelling by German think tanks Fraunhofer IEG, Fraunhofer ISI and consultancy d-fine, and considers all sectors from a Europe-wide perspective. This approach reveals "cross-sectoral synergies and efficiencies often missed in the more fragmented methods that are commonly used in today’s infrastructure planning processes," the think tanks said. 

The new planning process proposed by the think tanks would prioritise transmission networks and the construction of electricity interconnectors between member states, Tagesspiegel Background reported. Hydrogen, natural gas and carbon dioxide networks, on the other hand, should be limited to "clearly defined industrial and regional clusters".

The European Commission plans to make proposals on European networks on 10 December. The “European Grids Package” of proposals would help upgrade and expand grids to support rapid electrification and speed up permitting.