EU plans to enhance electricity network and initiate 'energy superhighways' project
In a significant move towards a more sustainable future, the European Union (EU) is set to strengthen its power grid and modernise its electricity infrastructure. This initiative, announced by European Commission President Ursula von der Leyen at a conference in Brussels titled 'One Year After the Draghi Report', aims to integrate national power networks more closely and address eight key energy bottlenecks.
Von der Leyen's announcement comes a year after the release of the Draghi Report, which urged the EU to adopt a more coordinated industrial policy, accelerate decision-making, increase investment, and consider joint borrowing to remain economically competitive with the U.S. and China. The report also warned that the EU's global competitiveness had weakened due to overlapping crises, including the COVID-19 pandemic, supply chain disruptions, the war in Ukraine, and rapid technological change.
In her speech, von der Leyen emphasised the need for change, particularly in the areas of decarbonisation and economic competitiveness. She highlighted that lower energy costs are crucial for achieving these goals. Notably, in the first half of 2025, a record €40 billion ($43 billion) was invested in wind energy, demonstrating the EU's commitment to renewable energy sources.
The new initiative also includes the 'Energy Highways' initiative, which will be spearheaded by the European Commissioner. This initiative is designed to streamline the flow of electricity across the EU, helping to address the issue of widely varying energy prices across member states. Currently, electricity can be three times more expensive in some states than others.
Von der Leyen also announced plans to convert AI factories into giga factories and emphasised that digital infrastructure should serve industrial and innovation goals. Furthermore, the Commission plans to provide funding where necessary to overcome infrastructure gaps.
The EU's internal market remains incomplete, according to von der Leyen, with existing trade barriers within the bloc acting as de facto tariffs. She stressed the need to address these issues to ensure a level playing field for all member states.
In her speech, von der Leyen reiterated that Europe is among the frontrunners, not trying to catch up. She stated that the EU is already leading in the transition to a low-carbon economy, with more than 70% of the EU's electricity now coming from low-carbon sources.
The strengthening of the EU's power grid is a significant step towards a more sustainable and economically competitive Europe. The Commission's proposed 'grid package' and 'energy highways' initiative are expected to be announced soon.
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