Europe’s Green Energy Goals Threatened by Grid Connection ‘Traffic Jam’
A surge of speculative projects is clogging networks, prompting calls for reform from one of Europe's largest grid operators.
Europe’s push for renewable energy is facing a critical bottleneck: grid connections. A flood of speculative and unprepared projects is blocking access for viable investments, according to a stark warning from one of the continent’s largest network operators.
Bernard Gustin, CEO of Elia Group, which manages Belgium’s grid and parts of Germany’s, argues that the current “first-come, first-served” system is failing to meet the real needs of the energy transition. In Belgium, he noted, there are up to ten times more battery storage projects in the pipeline than required by 2030, many of which are not mature.
His proposal is to prioritize grid connections for projects that are ready for development, rather than those that simply filed an application first. Such a shift, Gustin contends, would separate serious investors from purely speculative ventures.
Widespread Congestion
The problem extends far beyond Belgium. In the Netherlands, the queue for a grid connection can exceed seven years. European Commission data shows that in Slovakia, approximately 50% of reserved grid capacity remains unused. Meanwhile, in Germany, applications for connecting storage projects are double what the national grid development plan anticipates, an Elia Group report revealed.
The rapid expansion of renewables in the EU has outpaced necessary grid upgrades as member states rush to meet Commission targets and reduce reliance on imported fossil fuels. The European Commission estimates that investments of €1.2 trillion will be needed for Europe’s grids by 2040.
The High Cost of Bottlenecks
Grid congestion carries a measurable economic cost. When cheap electricity cannot be transported to areas of demand, consumers are forced to pay for more expensive power sources. ACER, the EU’s energy regulator, calculated this cost at €5.2 billion in 2022 and projects it could soar to €26 billion by 2030.
EU Energy Commissioner Dan Jørgensen stated that Europe loses billions each year due to production curtailments and network bottlenecks. In response, the Commission presented recommendations in December to prioritize grid connections and signaled a move toward more centralized planning for energy infrastructure to accelerate projects and share costs among member states.
Investment and Permitting Hurdles
Elia Group itself is planning €31.6 billion in investments through 2028 for network upgrades, with one-third allocated to Belgium and two-thirds to Germany. An additional €10 billion may be required to meet demand from batteries, data centers, and renewable projects.
Yet, financing is not the only obstacle. Permitting times remain a significant barrier, reaching up to eight years in Belgium, a delay that increases costs and deters investors. Recent EU legislation aims to reduce these delays by setting time limits and designating energy projects as being of overriding public interest.
Whether these changes can effectively clear the grid connection logjam will largely determine the pace of Europe’s energy transition in the coming years.
