COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 'European Grids Package'
Date: 2025-12-10
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, administrative formalities, electricity supply, energy grid, energy transition, gas supply, price of energy, renewable energy, security of supply, trans-European network

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 10.12.2025  COM(2025) 1005 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS 'European Grids Package'         
 
 
1.  Introduction 

In  recent  years,  the  European  Union  has  found  itself  at  a  critical  crossroads  due  to 
unprecedented  global  geopolitical  shifts  and  trade  fluctuations.  Russia’s  continued  war  of 
aggression against Ukraine underscored the paramount importance of energy security and 
competitiveness  in  shaping  our  collective  destiny.  It  is  essential  that  we  ensure  that  our 
companies  and  citizens,  regardless  of  the  Member  State  they  are  located  in,  have  access  to 
abundant clean, and affordable energy produced in Europe. 

This,  however,  can  be  realised  only  by  strengthening  our  energy  infrastructure,  the 
backbone  not  just  of  our  energy  system  but  of  Europe  itself.  Grids  are  central  to  this 
effort. By enabling energy to flow efficiently across Member States, integrating cheaper clean 
energy  and  accelerating  electrification,  they  help  lower  energy  prices  and  support 
affordable  living  for  all  Europeans  as  highlighted  in  the  Commission’s  Action  Plan  for 
Affordable  Energy.1  At  the  same  time,  they  ensure  a  secure  and  reliable  supply  and  allow 
countries to support one another in times of need, in line with the  REPowerEU objectives 
and enabling the phase-out of Russian energy imports.2  

Despite the progress achieved within the current EU legal framework, we still have too 
little  homegrown  energy  and  have  not  reached  the  level  of  interconnectivity  among 
Member States that would enable a genuine Energy Union, as several Member States are 
not  on  track  in  meeting  the  15%  interconnection  target  by  2030.  The  cost  of  inaction  is 
staggering: in 2022, fossil fuels had the largest share of EU gross available energy use (70%) 
in the EU, with 98% of all oil and gas used in Member States being imported.3 This exposes 
the EU to price volatility and geopolitical risks. In 2024, Europe spent circa EUR 375 billion 
on  imports  of  fossil  fuels.4  In  stark  contrast,  investment  in  renewable  power  and  grids 
remains comparatively low: Europe spent USD 117 billion in 2025, when China spent USD 
327 billion.5  

The  insufficient  integration  and  underinvestment  in  our  energy  infrastructure  has  a  direct 
impact on energy bills of European citizens and the development of strategic sectors across 
the  EU,  such  as  net-zero  industries  or  digital. The  Draghi  and  Letta  reports  emphasise  that 
our  electricity  prices  remain  2-3  times  higher  than  those  in  the  US;  EU  electricity  retail 
prices for industry were in Q2 2024 2.2 times those in the US, twice those in China and 1.2 
times  higher  than  in  Japan  (historically  lower).6  In  the  first  half  of  2025,  the  average 
electricity price for EU consumers varied from €0.3835 per kWh in Germany to €0.1040 per 
kWh  in  Hungary,  while  non-household  electricity  prices  ranged  from  €0.2726  per  kWh  in 
Ireland  to  €0.0804  per  kWh  in  Finland.7 A  key  reason  for  this  disparity  is  the  insufficient 

1 EUR-Lex - 52025DC0079 - EN - EUR-Lex 
2 REPowerEU 
3  Renewables,  electrification  and  flexibility  -  For  a  competitive  EU  energy  system  transformation  by  2030  | 
Publications | European Environment Agency (EEA), p. 6 and 16. 
4 Imports of energy products to the EU down in 2024 - News articles - Eurostat 
5 China’s energy dominance in three charts | MIT Technology Review 
6 European Commission, Affordable Energy Action Plan (COM(2025) 79), p. 1.  
7 Electricity price statistics - Statistics Explained - Eurostat 

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level of investment in and integration of our infrastructure. If we fail to act, 45% of cross-
border  electricity  capacity  needs  (equal  to  41  GW)8  will  remain  unaddressed  by  2030  and 
unused  renewable  energy  may  reach  up  to  310  TWh  by  2040,9  nearly  half  of  electricity 
consumption in 2023.  

On the other hand, the benefits of action are clear: enhanced market integration could lead 
to  annual  cost  savings  of  EUR  40  billion,  while  boosting  cross-border  electricity  trade  by 
50%  could  raise  annual  EU  GDP  growth  by  around  EUR  18  billion  by  2030  (or  0.1%10). 
Until 2030, we are lacking 88 GW of cross-border electricity transmission capacity. Investing 
EUR 5 billion would reduce system costs by EUR 8 billion, creating a net economic gain of 
EUR 3 billion and highlighting how grid development can deliver real added value and cost 
savings for Europeans.11  

It is  therefore imperative that we collectively  take decisive action to resolve structural 
issues in EU energy infrastructure planning and implementation to successfully deliver 
a  genuine  Energy  Union  that  enables  energy 
independence,  strengthens  our 
competitiveness, drives decarbonization, and fosters our energy security. The European 
Grids  Package  put  forward  by  the  Commission  today  aims  to  do  exactly  that. 
Complementing  these  measures,  the  Energy  Highways  initiative,  launched  in  the  2025  by 
President  von  der  Leyen  in  her  State  of  the  Union  address,  seeks  to  accelerate  progress  on 
critical  and  urgently  needed  energy  infrastructure  projects  through  immediate  action, 
ensuring that we can harness the full potential of our energy system to power a more resilient, 
competitive and sustainable Europe.  

2. Tackling structural bottlenecks through the European Grids Package  

A.  Building  a  unified  energy 

future:  strengthening  EU-wide  cross-border 

infrastructure planning and maximising the use of existing infrastructure 

The current grid planning framework under the TEN-E Regulation has significantly advanced 
the coordination and development of cross-border energy infrastructure projects. Since 2014, 
124 Projects of Common Interests (PCIs) and Projects of Mutual Interests (PMIs) have been 
backed  by  EUR  8.4  billion  from  CEF,  unlocking  at  least  EUR  15.8  billion  in  private 
investments.12  However,  further  action  is  imperative  to  ensure  a  seamless  coordination 
across  national,  regional  and  EU  governance  levels  and  across  sectors,  to  ensure  a  fully 
optimised and interconnected grid.  

To  advance  this,  building  on  existing  structures,  the  experience  gained  so  far  and 
strengthened  regional  cooperation,  we  must  move  to  an  EU  cross-border  energy 

IMF  Staff  Background 

8  TYNDP  2024  /  Infrastructure  Gaps  Report  /  Opportunities  for  a  more  efficient  European  power  system  by 
2050   
9 Electricity and heat statistics - Statistics Explained - Eurostat 
10 
https://data.consilium.europa.eu/doc/document/ST-5438-2025-INIT/en/pdf, p. 5. 
11 TYNDP  2024  /  Infrastructure  Gaps  Report  /  Opportunities  for  a  more  efficient  European  power  system  by 
2050   
12 CINEA Project Portfolio - Welcome | Sheet - Qlik Sense 

on  EU  Energy  Market 

Integration, 

January 

2025, 

note 

17 

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that  enables  a  more  coordinated  and  robust 
infrastructure  planning  framework 
identification  of  needs,  thereby  ensuring  projects  align  with  current  and  future  European 
objectives.  The  Package  also  supports  a  better-connected  European  energy  network, 
reinforcing  Europe’s  strategic autonomy, security, and resilience, while  fostering  enhanced 
cooperation  with  neighboring  partners  from  the  European  Economic  Area  (EEA),  the 
Energy Community and the Eastern Partnership and the Southern neighbourhood.  

Following  today’s  proposed  package,  within  2  years  from  its  enactment,  the  Commission 
will develop a comprehensive central EU scenario consistent with EU energy and climate 
targets and delivering a cost-efficient, competitive and secure system at EU level. The central 
scenario will be based on input from Member States and all relevant stakeholders considering 
synergies  across  sectors.  Based  on  this,  ENTSOs  and  ENNOH  will  then  identify  the 
infrastructure needs.  

Additionally,  strengthened  European  intervention  is  necessary  when  a  cross-border 
capacity need has been identified but relevant project proposals for addressing this have not 
been put forward. The Commission should be able to initiate a “gap filling” process, based 
on strong regional cooperation, inviting system operators, and eventually project promoters, 
to propose projects to address unmatched needs. 

To achieve an integrated system, stronger coordination between national and European 
planning  is  essential,  as  internal  network  elements  significantly  influence  cross-border 
infrastructure  development,  which  in  turn  affects  cross-border  trade.  The  planning  of 
distribution grids must therefore be well coordinated with transmission-level planning and 
should  closely  involve  both  the  public  and  industry,  so  that  future  grids  are  prepared  to 
accommodate increasing electricity generation and demand. In cooperation with all relevant 
stakeholders,  the  Commission  will  continue  advancing  this  work  under  the  2023  Grids 
Action Plan.13 

In  the  meantime,  maximising  the  use  of  existing  infrastructure  before  investing  in  new 
capacity  is  key  for  achieving  an  affordable  and  sustainable  energy  transition  and  ensuring 
energy security. In line with the ‘energy efficiency first’ principle, greater  uptake of smart 
electricity  grids,  innovative  and  digital  technologies  and  network  efficiency  measures 
need to be further incentivised at both network and users’ level, while ensuring sufficient 
grid capacity to meet additional demand in a timely manner. As an example, the use of grid-
enhancing technologies can increase overall network capacity in  Europe by 20% to 40% by 
2040 and cost reductions by 35% compared to traditional network expansion by 204014. The 
European Grids Package proposes to  firmly  anchor these principles in network planning 
and to promote related projects alongside the extension of physical infrastructure. The just 
launched  Technopedia  platform  showcases  best  practices  in  grid-enhancing  and  innovative 

13 Grids, the missing link - An EU Action Plan for Grids, COM (2023) 757 final 
14 2024 ACER monitoring report on electricity infrastructure, 
ACER_2024_Monitoring_Electricity_Infrastructure.pdf 

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technologies15.  Next  year,  the  Commission  will  also  present  a  Strategic  Roadmap  for 
Digitalisation  and  AI  in  the  energy  sector,  helping  to  scale  up  smart  solutions  across 
European  grids.  Digital  tools  can  help  address  increased  volatility  notably  from  renewable 
energy integration. Moreover, large data and cloud infrastructure can contribute to reinforce 
grid stability and therefore will be taken into account during the planning procedure. 

Furthermore,  as  access  to  grids  starts  being  a  challenge  in  some  Member  States,  creative 
solutions can help free up capacity and manage queues in an efficient way. The Guidance on 
efficient  grid  connections  adopted  today  provides  recommendations  and  shares  good 
practices  Member  States  and  national  regulatory  authorities  can  apply  to  address  these 
challenges  immediately  and  make  the  most  efficient  use  of  existing  grids.  These  include 
applying the “first-ready first-serve” principle, transparent maturity criteria for all connection 
requests, establishing clear project-development milestones with associated penalties for non-
compliance, and conducting regular monitoring and cleaning of the connection queues.  

The  Grids  Package,  therefore,  plays  a  key  role  in  ensuring  our  electricity  market  remains 
robust  and  effective.  It  strengthens  the  efficient  use  of  existing  infrastructure,  thereby 
contributing  to  making  70%  transmission  capacity  available  for  cross-zonal  electricity 
trade16.  Additionally,  it  supports  our  commitment  on  delivering  on  the  electricity 
interconnection  target  of  15%  by  2030,  while  preparing  the  work  for  the  revision  of  the 
Governance Regulation to align with our climate and energy ambition for the decade ahead. 

B.  Turning  plans  into  action:  accelerating  the  delivery  of  energy  infrastructure 

projects on the ground 

Identifying infrastructure needs and projects is only half of the journey. Even when projects 
are  defined,  construction  often  stalls  due  to  lengthy  permitting  procedures,  lack  of  public 
acceptance,  financing  hurdles,  or  difficulties  in  sharing  costs  between  Member  States. All 
these  must  be  addressed  while  enhancing  the  security  and  resilience  of  our  infrastructure 
against both deliberate and accidental disruptions. 

First, slow permitting remains one of the most significant barriers to timely deployment 
of energy infrastructure and generation in the EU. In 2023, 26% of electricity PCIs were 
delayed by an  average of 12 months according to ACER, with  permitting  alone  accounting 
for  more  than  half  of  the  total  implementation  timeline  of  electricity  infrastructure.17 
Similarly, permitting timelines vary widely across Member States, with transmission grids 

15 TSO DSO Technopedia - Home  
16 As  foreseen  under  15(2) of Regulation  (EU)  2019/943  on  the  internal  market  for  electricity,  that  minimum 
capacity shall be reached by 31 December 2025.  
17 2023_ACER_PCI_Report.pdf . 

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taking on average 5 years,18 PCIs on average 4.3 years,19 renewable energy projects taking up 
to 9 years,20 storage installations 1 to 7 years 21 and recharging stations up to 2 years.22  

In 2022 and 2023, the EU took notable steps to speed up permitting for renewable energy and 
infrastructure projects, including via the Emergency Regulation (applicable until June 2025) 
and the revision of Renewable Energy Directive (RED). However, delays continue to persist, 
particularly  in  integrating  standalone  storage  and  charging  stations. Additionally,  while  the 
environmental assessment is necessary to  ensure both the protection of biodiversity and the 
social acceptance of projects, its present modalities do not effectively capture the specificity 
of projects with minimal environmental impact and can cause unnecessary delays.  

Against this backdrop, the European Grids Package, in coordination with the EU regulatory 
framework on environmental protection, establishes an EU level framework to simplify and 
accelerate  permitting  procedures  for  all  grid  infrastructure,  renewable  energy  projects, 
storage projects and recharging stations, and further strengthens the provisions for PCI/PMIs. 
Decarbonisation  is  the  first  action  that  can  help  safeguard  nature  and  reduce  air  pollution. 
These  streamlined  permitting  procedures  target  the  cases  where,  based  on  the  extensive 
experience  with  implementing  the  current  legal  framework,  environmental  impacts  are 
limited;  the  proposed  changes  help  attain  the  balance  between  protection  of  biodiversity 
and swift deployment of a clean energy system. This aims at reaching the goal of limiting 
the  permitting  process  to,  depending  on  the  type  of  project,  up  to  two  years  in  most  cases, 
with a maximum of three years for the most complex projects.  

Public participation in project planning, and operation is also essential for building trust and 
achieving  EU  targets,  thereby  minimising  lengthy  judicial  challenges.23 The  Grids  Package 
requires  that  renewable  energy  projects  over  10MW  redistribute  benefits  to  the  local 
population,  beyond  energy  communities.  It  also  allows  for  independent  facilitators  to 
support  early  dialogue  and  mediation,  further  reducing  the  risk  of  judicial  challenges  and 
fostering cooperative development. To address public acceptance concerns, the Commission 
will also offer a practical toolbox on public inclusion in Q1 2026  which will facilitate the 
sharing  of  good  practices  and  capacity  building  on  how  to  involve  citizens  and  local 
authorities and promote benefit sharing of renewable energy projects.24 

A  second  challenge  comes  from  rising  demand  for  energy  infrastructure,  which  is  putting 
significant pressure on supply chains, labour availability, and skills, while manufacturing 

18  ACER  Monitoring  Report  2024,  Electricity  infrastructure  development  to  support  a  competitive  and 
sustainable energy system, p. 18. 
19 https://www.acer.europa.eu/media/charts/PCIs-and-PMIs-monitoring-2025.  
20  Final  report  to  be  found  here:  Technical  support  for  RES  policy  development  and  implementation  – 
simplification of permission and administrative procedures for RES installations (RES Simplify)  - Publications 
Office of the EU. 
21 Fraunhofer Institute for Systems and Innovation Research ISI, et al., Study on energy storage, 2023.  
22 Information collected by EV charging organisations, notably ChargeUp Europe, Ionity and Milence. 
23  Relevant  good  practice  examples  can  be  found  in  SWD  (2024)  124  final  -  Guidance  to  Member  States  on 
good practices to speed up permit-granting procedures for renewable energy and related infrastructure projects. 
24  Such  as  the  Covenant  of  Mayors,  the  Pact  for  Engagement  and  the  Fast  &  Fair  Renewables  and  Grids 
initiative.  

5 

 
 
 
bottlenecks are increasingly constraining our electricity system expansion and modernisation. 
Although  Europe  is  home  to  leading  grid  technology  manufacturers,  the  current  production 
capacity in some segments is insufficient to meet demand25, and the sector must scale up to 
keep pace.  

As highlighted in the guidance on efficient grid connections, demand visibility is essential to 
guide  industry  investment  decisions.  To  help  address  this,  the  Commission  will  work 
together with the EU DSO Entity to establish, by the 2026 Energy Infrastructure Forum, 
a platform for EU distribution network planning that will provide visibility at distribution 
level  on  future  plans  and  related-manufacturing  needs  across  Member  States.  The 
Commission  is  actively  advancing  a  series  of  measures  to  ease  supply  chain  pressures, 
notably by reinforcing its work, initiated under the Grid Action Plan Action 13, to streamline 
and  harmonise  common  technology  specifications  and  technical  requirements  and 
improve  interoperability  of  HVDC  systems.  The  modernisation  of  the  European  Public 
Procurement framework, announced for next year, will also be crucial in further promoting 
the  objective  of  supporting  our  manufacturing  base,  including  grids  technologies  that  are 
“Made in Europe”. 

Third,  mobilising  private  investment  is  needed  to  ensure  an  affordable  grid  roll-out. As 
grid  infrastructure  is  largely  financed  through  tariffs,  meeting  the  substantial  investments 
needed  (EUR  1.2  trillion  by  2040  for  electricity  grids,  including  EUR  730  billion  for 
distribution  grids  alone,  and  EUR  240  billion  for  hydrogen  networks26)  poses  a  challenge. 
Relying  on  the  current  framework  could  lead  to  higher  prices  for  consumers,  making  EU 
action in this area necessary.  

We  therefore  need  to  ensure  future-proof  network  charges27,  exploring  additional  ways  of 
financing infrastructure where needed, including by requiring the use of part of congestion 
income  for  investments  in  interconnectors  on  the  PCI/PMI  list.  Furthermore,  as  cross-
border energy infrastructure increasingly integrates, more projects deliver benefits beyond 
the territories where they are built. This makes fair and transparent cost-sharing essential 
to  avoid  disproportionate  burdens  on  local  consumers.  To  tackle  this,  the  European  Grids 
Package  aims  to  provide  more  transparency,  certainty  and  fairness  in  the  way  costs  and 
benefits  are  assessed  and  shared  and  to  enable  the  bundling  of  PCIs  or  PMIs  in  order  to 
facilitate  cost-sharing  discussions.  Bundling  can  also  make  financing  easier,  for  example 
through  the  establishment  of  special  purpose  vehicles,  thereby  attracting  additional 
investment.  

Europe  is  scaling  up  financial  support  for  energy  infrastructure.  The  recently  adopted 
legislation  on  the  mid-term  review  of  Cohesion  policy  enables  national  and  regional 

25 For example, prices and lead times for new transformers and cables nearly doubled in 2025 compared with 
2021–2022 (Source: Building the future transmission grid – Strategies to navigate supply chain challenges; IEA, 
February 2025). 
26 Artelys, LBST, Trinomics, Finesso, A. et al., Investment needs of European energy infrastructure to enable a 
decarbonised economy, 2025.  
27 https://energy.ec.europa.eu/publications/communication-future-proof-network-charges-reduced-energy-
system-costs_en  

6 

 
 
 
authorities to reallocate 2021-2027 funding to key priorities, such as the energy transition.28 
Furthermore, the Commission’s proposal for the next Multiannual Financial Framework29, 
includes a significantly reinforced Connecting Europe Facility. However, EU funding alone 
cannot meet our massive investment needs. The EU budget must play a stronger role in de-
risking private investment and unlocking financing by institutional investors. The upcoming 
Clean  Energy  Investment  Strategy  will  propose  concrete  actions  to  crowd  in  and  ensure 
enhanced  support  from  private  sector  investment,  including  with  support  from  the  EIB,  a 
key partner in accelerating the grid roll-out. 

For  hydrogen,  project  development  remains  slow  due  to  limited  bankability  and  high  risks 
across  the  value  chain.  To  address  this,  the  Commission  will  assess  and,  where  relevant, 
support the implementation of possible solutions, such as contracts for difference or cross-
border coordination of regulatory tools, including as part of the regional High-level groups, 
to ensure coordinated progress and help bridge financing gaps.  

Fourth, strengthening the security and resilience of our energy infrastructure is critical in 
today’s geopolitical context and in light of increasing climate-related risks. Recent incidents 
in  the  Baltic  Sea,  including  damages  to  the  Balticconnector  and  Estlink  2,  highlight  the 
vulnerabilities  of  cross-border  energy  assets,  while  climate-related  events  and  accidental 
disruptions remain significant risks to our security of supply. 

To safeguard the EU's energy independence, the Grids Package integrates physical and cyber 
security considerations into cross-border project planning from the start, promoting resilience 
and security  by design  for new infrastructure, enhances transparency in  ownership to  avoid 
dependency  on  high-risk  foreign  entities,  and  ensures  existing  infrastructure  physical  and 
cyber security and resilience enhancements are eligible for CEF financing while preventing 
overlaps with other EU financing support. In addition, building on the Cable Security Action 
plan, the Commission will continue its work through Regional Cable Hubs and strengthen the 
application of the Cable Security Toolbox.30 

3. Eight priorities for Europe’s energy backbone: the Energy Highways Initiative  

In her State of the Union address on 10 September 2025, President von der Leyen announced 
eight  “Energy  Highways”.  Building  on  existing  PCIs  and  PMIs  under  the  TEN-E 

28  Support  could  go  towards  developing  cross-border  energy  interconnectors,  expanding  renewable  energy 
sources  like  solar  and  wind,  the  deployment  of  recharging  infrastructure  and  upgrading  energy  distribution 
networks to manage efficiently fluctuations in supply. 
29The  EU  currently  provides  substantial  support  through  the  Connecting  Europe  Facility,  European  Regional 
Development  Funds,  Cohesion  Funds  or  Recovery  and  Resilience  Plans,  amongst  others.  Under  the 
Commission’s proposal for the next Multiannual Financial Framework, the budget of the  Connecting Europe 
Facility  for  Energy  (CEF-E)  would  rise  significantly,  from  EUR  5.84  billion  for  2021–2027  to  EUR  29.91 
billion  for  2028–2034.    The  European  Competitiveness  Fund  will  provide  a  consolidated  funding  stream 
(EUR  234.3 billion)  with  dedicated  funding  (EUR  26.2  billion)  for  scaling  up  and  deploying  decarbonisation 
and  clean  transition  technologies,  including  infrastructure.  The  National  and  Regional  Partnership  Plans 
(EUR 865 billion) will bring together clean energy investments and reforms and support the implementation  of 
National Energy and Climate Plans. 
30 EU Action Plan on Cable Security, JOIN(2025) 9 final, eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52025JC0009 

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framework, as well as flagship projects referred to in the Affordable Energy Action Plan, the 
Energy  Highways  address  the  most  urgent  energy  infrastructure  needs  that  require 
particular  additional  short-term  support  and  commitment  for  implementation  to 
address bottlenecks that hinder progress.31  

The Energy Highways will enhance energy security, reduce reliance on fossil fuels, integrate 
more renewables into the grid, promote electrification, decrease energy prices, accelerate the 
implementation  of  REPowerEU  and  help  Member  States  adapt  to  the  phase-out  of  Russian 
fossil  fuel  imports.  Many  of  the  Energy  Highways  hold  PCI  or  PMI  status  in  the  second 
Union list of PCIs and PMIs published on 1 December 2025, which features 235 cross-border 
energy  infrastructure  projects  within  the  EU  and  with  third-country  partners  such  as  the 
Celtic  Interconnector,  the  Black  Sea  Interconnection  Cable,  Estlink  3.  Under  the  TEN-E 
framework,  all  PCIs  and  PMIs  in  the  Union  list  benefit  from  several  advantages,  including 
priority status and streamlined permit  granting procedures as  well as  eligibility to apply for 
financial assistance under the Connecting Europe Facility. 

Figure 1: Map of the Eight Energy Highways  

1. Pyrenean crossing 1 and Pyrenean crossing 2 [Better integrate the Iberian Peninsula with 
power interconnectors across the Pyrenees to France] 
2.  Great  Sea  Interconnector  [Connect  Cyprus  with  continental  Europe  to  end  its  electricity 
isolation] 

31 Delegated Regulation on the second Union list of Projects of Common and Mutual Interest and its annex - 
Energy. 

8 

 
 
 
 
3. Harmony Link [Strengthen power links with the Baltic states] 
4. TransBalkan  Pipeline  (TBP)  reverse  flow  [Improve  energy  supplies  in  the  Balkan  region 
and eastern neighboring states] 
5. Bornholm Energy Island [Turn the Baltic Sea into an offshore interconnector hub] 
6. Improve price stability and energy security in southeastern Europe 
7. SoutH2 Corridor [The South hydrogen corridor] 
8. Southwest hydrogen corridor from Portugal to Germany 

The Commission is committed to immediately fast-tracking the Energy Highways through 
enhanced political  coordination, drawing on the Regional High-Level  Groups, mobilizing 
support of European coordinators where relevant and working closely with the Energy Union 
Task  Force,  extending  outreach  beyond  EU  Member  States  where  necessary.  Each  project 
will  be  prioritised  at  EU  level,  and  the  Commission  will  support  Member  States  in  giving 
them the same priority nationally.  

To ensure effective cross-border cooperation on permitting, the Commission will focus on 
identified  interconnector  priority  projects,  strengthening  its  support  to  Member  States  in 
identifying joint procedures for an effective and efficient permitting process with the support 
of  a  European  Coordinator,  where  appropriate.  Drawing  on  this  experience  with  the  closer 
coordination  of  permit  granting  procedures,  the  Commission  may  consider  further  action. 
Moreover,  to  strengthen  the  administrative  capacity  of  permitting  authorities  and  the 
digitalisation of renewable energy permit granting procedures, the Commission will provide 
support  to  Member  States  through  dedicated  actions  that  will  complement  the  permitting 
regulatory  framework.  This  will  include  leveraging  tools  like  the  Technical  Support 
Instrument  and  exploring  the  creation  of  a  pilot  facility  on  permitting  through  existing 
advisory facilities to enhance capacity building and access to financing for investments and 
reforms on permitting. The Commission will also promote knowledge-sharing about funding 
possibilities  and  the  development  of  new  digital  platforms  for  permitting  through  the 
Permitting Expert group.    

Some  projects  are  already  recognised  as  Important  Projects  of  Common  European  Interest 
(IPCEIs),  bringing  additional  benefits  in  terms  of  funding  and  coordination.  Likewise,  the 
Pyrenean crossing 1 and Pyrenean crossing 2 highways, the southwest hydrogen corridor and 
the  South-Eastern  Europe  highway  will  be  designated  as  pilots  under  the  Competitiveness 
Coordination Tool allowing them to benefit from the tool’s whole-of-government approach 
and specific capacity to address horizontal issues. The priority actions that will be established 
under the CCT will be carried out in conjunction with the efforts of the respective High-level 
groups  or  fora  and  will  reflect  the  respective  needs  of  each  highway,  such  as  improving 
energy system flexibility, addressing supply-chain issues or financing challenges. 

Moreover, the Baltic and Central- and South-East European region Highways have recently 
been assigned European Coordinators under the TEN-E framework,32 to facilitate the timely 

32 New European coordinator appointed to oversee completion of Baltic synchronisation energy project - 
European Commission 
New European coordinator appointed for the Central and South-East European energy interconnectivity 

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implementation  of  projects  by  promoting  cross-border  dialogue,  supporting  permitting  and 
financing,  ensuring  Member  State  backing,  and  reporting  on  progress  and  obstacles.  The 
Commission  will  also  strengthen  existing  structures  and  ensure  dedicated  resources  to 
achieve an increased and continuous focus on the delivery of the eight Energy Highways, in 
close cooperation with the European Coordinators, where appropriate. 

The Commission will actively collaborate with all concerned Member States making full 
use of the above toolkit to  ensure the successful implementation  of the Energy Highways. 
Regular  progress  updates  will  be  provided  to  the  European  Council  to  ensure  political 
commitment while ensuring transparency and accountability.   

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Annex: Additional short-term targeted action for each of the Energy Highways 

In addition to the horizontal support presented above, the Commission will provide targeted 
short-term  actions  to  address  specific  challenges  for  each  of  the  Highways,  to  ensure 
concrete progress and deliverables can be achieved within the next 6-9 months.  

1.  Pyrenean crossing 1 and Pyrenean crossing 2 [Electricity interconnections across the 
Pyreneans to better integrate the Iberian Peninsula] 

The Iberian Peninsula remains insufficiently connected to the rest of the EU energy market, 
with  current  cross-border  capacity  between  France  and  Spain  limited  to  2.5  GW.  This 
hampers  market  integration,  drives  persistent  price  differentials,  and  constrains  renewable 
integration. In addition to the Biscay Bay interconnection project that is under construction, 
the  objective  of  these  two  additional  Pyrenean  projects  is  to  raise  total  interconnection 
capacity  to  8  GW  by  2040,  strengthen  system  resilience,  and  reducing  renewable 
curtailment.  The  two  Pyrenean  interconnection  projects  have  been  reconfirmed  in  the 
current  PCI/PMI  list  as  priority  projects  to  address  this  bottleneck.  In  May  2025,  the 
Navarra (ES) - Landes (FR) project received a EUR 11.1 million Connecting Europe Facility 
(CEF)  grant  for  preparatory  studies.  Despite  their  strategic  importance,  progress  has  been 
relatively  slow,  with  further  work  needed  on  internal  reinforcements  and  on  clarifying  the 
financing approach. 

Short-term  actions:  The  Commission  will  work  to  facilitate  a  joint  political  declaration  at 
the  next  Ministerial  meeting  of  the  High-Level  Group  South-West  Europe  (Q1  2026),  with 
the objective of confirming the start of implementation for at least one of the projects and 
addressing the necessary internal grid reinforcements.  

2.  Great  Sea  Interconnector  [Electricity  interconnection  of  Cyprus  with  continental 
Europe to end electricity isolation] 

Cyprus is the last EU Member State not connected to the European electricity grid33, limiting 
its  integration  into  the  internal  energy  market  and  constraining  opportunities  for  renewable 
integration. The planned Great Sea Interconnector between Greece and Cyprus will address 
this  gap,  ending  Cyprus’  electricity  isolation,  supporting  Cyprus’s  decarbonization  and 
strengthening  the  resilience  of  the  European  energy  system.  It  will  also  facilitate  greater 
integration of renewable energy in the wider Mediterranean region. 

The project, reconfirmed in the current PCI/PMI list, will be the world’s longest submarine 
power cable, with a length of nearly 900 km. It has been supported by CEF grants, including 
EUR  2.3  million  for  feasibility  studies  and  EUR  658  million  for  works  to  construct  the 

33 Ireland will be directly connected to EU electricity grid through the on-going Celtic Interconnector project 
between Ireland and France. 

11 

 
 
 
 
section  between  Greece  and  Cyprus.  In  May  2025,  work  was  completed  on  the  undersea 
cable linking the Greek mainland to Crete, a key step towards the full interconnection. 

Progress on the project has been hampered by a complex geopolitical context, with potential 
implications for timelines and costs. The strategic value of this interconnection highlights the 
importance  of  strong  coordination  between  Member  States  to  address  these  challenges  and 
ensure completion of the project. 

Short-term  actions:  The  Commission  will  continue  to  give  strong  political  and  technical 
support to the project of highest strategic importance in close cooperation with the upcoming 
Cyprus  Council  Presidency  in  2026,  including  through  dedicated  events  and  high-level 
discussions, and with additional engagement to addressing geopolitical aspects.  

3.  Harmony  Link  [Strengthening  the  Electricity  interconnection  of  the  Baltic  States  to 
boost security benefits of their independence from Russia] 

On  9  February  2025,  the  three  Baltic  States  successfully  synchronised  their  electricity 
systems  with  continental  Europe,  a  landmark  achievement  for  European  energy  security. A 
key  remaining  investment  under  the  Baltic  Synchronisation  PCI  is  the  Harmony  Link 
interconnector between Lithuania and Poland, which will complete the full integration of 
the  Baltic  electricity  markets.  The  recent  appointment  of  a  European  coordination  for  the 
completion of this project should support swift delivery.  

Once  completed,  the  Harmony  Link  will  enhance  market  integration,  enabling  electricity 
trade  through  Poland  and  fostering  competition  that  can  lower  prices  for  consumers  and 
businesses in the region. It will also facilitate the integration of renewable energy. Harmony 
Link will also significantly strengthen energy security in the Baltic States. Today, the LitPol 
Link interconnector is the only connection between the Baltics and continental Europe, and 
outage would carry serious consequences for the Baltic energy system.  

Short-term actions: The Commission will support the timely delivery of this project through 
enhanced  regional  cooperation  and  take  stock  at  Ministerial  level  during  the  next  BEMIP 
High-Level meeting in 2026, following the signature of the updated BEMIP Memorandum of 
Understanding last year, and ensure that the adoption of the new BEMIP High-Level Group 
Action Plan prioritises delivery of this highway. 

4. TransBalkan Pipeline (TBP) reverse flow [Resilience of energy supplies in the Balkan 
region and our eastern neighbourhood] 

The  Trans-Balkan  Pipeline  (TBP)  reverse  flow  is  not  a  capacity  expansion  project,  but  a 
coordinated effort in the Central- and South-East European region to enable the maximized 
use of existing natural gas transmission capacity in the reverse direction, from South to 
North. This functionality is key to diversifying natural gas supplies in South-East Europe and 
to ending Russian imports. 

With significant transport capacity, the TBP can play a central role in regional diversification 
and in delivering on the REPowerEU objectives. This potential will grow further from 2027, 

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when  the  Neptun  Deep  gas  field  in  Romania  is  expected  to  come  online.  Full  South-North 
operation  of  the  TBP,  combined  with  source  diversification,  would  foster  greater  trade, 
competition, and market liquidity in the region without the need for costly new infrastructure. 

Despite this potential, current regulatory and market obstacles in several Member States 
along the pipeline create obstacles to the TBP’s use and commercial viability. The recent 
appointment of a European Coordinator for the CESEC region will strengthen EU’s support 
the resolution of these barriers. 

Short-term  actions:  The  Commission  will  intensify  coordination  under  the  CESEC  High-
Level  Group,  with  all  concerned  countries  including  Moldova  and  Ukraine,  with  a  view  to 
increasing  the  commercial  attractiveness  of  the  pipeline  as  soon  as  possible,  while 
ensuring long-term compliance with the EU energy acquis. In this context, the Commission 
will further support the work of the CESEC High-level Group on gas quality harmonisation, 
and the removal of obstacles to the maximized utilization of the Trans-Balkan Pipeline. 

5.  Bornholm Energy Island [Turning the Baltic Sea into an offshore interconnector hub] 

As  a  first-of-its  kind  project,  the  Bornholm  Energy  Island  (BEI)  is  a  hybrid  offshore 
project, located southwest of Bornholm, in the Exclusive Economic Zone of Denmark. The 
project  is  planned  as  a  future  energy  hub,  with  potential  to  expand  and  connect  to  more 
interconnectors with other countries. It is reconfirmed in the 2nd PCI/PMI list and received a 
CEF grant for works (EUR 645.2 million) in September 2025. BEI is a blueprint for future 
EU offshore initiatives; it will increase market integration, enhance security of supply at EU 
level and benefit Denmark and Germany and Member States beyond the region. By linking 
offshore  generation  with  the  Danish  and  German  national  grids,  offshore  wind  energy  is 
transformed from a national resource into a shared European asset for further electrification, 
strengthening our collective resilience and energy independence. Remaining challenges relate 
to an agreement between Denmark and Germany on how to share the additional support costs 
for  the  offshore  wind  farm  in  Denmark  and  completion  of  the  regulatory  framework  in 
Denmark, particularly on cross-border liability. 

Short-term actions: : Following the signature of the CEF grant agreement worth  EUR 645 
million to support the Danish side of the Bornholm Energy Island (BEI) on 4 September 2025 
in Copenhagen, for the construction of two new converter stations and the installation of an 
submarine cable system, the Commission will continue supporting Denmark and Germany in 
reaching  a  political  agreement  on  the  cost  sharing  for  the  offshore  generation  located  in 
Danish  waters,  as  well  as  in  finalizing  their  regulatory  framework  on  cross-border  liability. 
Furthermore,  the  Commission  will  continue  to  support  work  on  the  interoperability  of 
offshore networks to ensure that the BEI can in the future develop into a true offshore hub for 
the Baltic region. 

6.  Improve  price  stability  and  energy  security  in  southeastern  Europe,  including 
through storage 

The  South-Eastern  European  region  suffers  from  structural  high  price  differentials,  as 

13 

 
 
 
evidenced by 2024 price spikes, causing average price disparities of more than 10 EUR/MWh 
between respective countries. 

The South-Eastern Europe electricity interconnections Energy Highway addresses critical 
electricity  infrastructure  gaps  in  the  region,  with  the  aim  of  improving  price  stability, 
enhancing  security  of  supply,  and  fostering  regional  market  integration.  It  involves  making 
better use of existing interconnections and addressing future cross-border needs to eliminate 
current  price  disparities.  According  to  ENTSO-E  2024  TYNDP  system  needs  assessment, 
infrastructure  reinforcements  are  needed  on  most  of  the  borders  in  the  region.  Swift 
implementation of existing projects of common interest and priority electricity infrastructure 
projects  of  the  Central  and  South-Eastern  Europe  Energy  Connectivity  High-Level  Group 
(CESEC)  will  be  crucial  to  fulfil  those  needs. Accelerating  storage  in  the  region  will  also 
improve system flexibility. 

Short-term  actions:  Strong  coordination  and  support  from  the  CESEC  High-Level  Group, 
together  with  the  CESEC  Coordinator,  will  be  essential  to  accelerate  progress.  The 
Commission will ensure that dedicated high-level discussions are held next year at all levels 
to maintain momentum and support implementation.  

7.  SouthH2  Corridor  [The  South  hydrogen  corridor  (Tunisia,  Italy,  Austria  and 
Germany)] 

The South hydrogen corridor will be key to advancing a just and sustainable energy transition 
across the Mediterranean, particularly in North Africa, while enabling the decarbonization of 
industrial hubs along its route. It offers significant potential to scale up renewable hydrogen 
production,  infrastructure  and  offtake  markets,  foster  market  integration,  and  establish  a 
supportive  regulatory  and  investment  framework  aligned  with  the  EU’s  hydrogen  strategy 
and regulatory framework.  

This  corridor  includes  four  Projects  of  Common  Interest  (PCI),  some  having  already 
benefit  from  CEF  grants  for  studies,  and  [one  Project  of  Mutual  Interest  with  Tunisia],  all 
reconfirmed  in  the  2nd  PCI/PMI  list.  Going  ahead  and  given  the  early  stages  of  hydrogen 
market  development,  further conceptual  work will be needed, in  particular to  further derisk 
related investments while maintaining a mutually beneficial partnership with North Africa. 

Short-term  actions:  In  the  short  term,  the  Commission  will  reinforce  coordination  and 
implementation  efforts  of  the  SoutH2  Secretariat,  under  the  joint  leadership  of  DG  MENA 
and DG ENER. Regional dialogues will also be intensified through meetings of the Southern 
Hydrogen Corridor Trilateral EU Joint Working Group (Italy, Austria and Germany) and the 
Penta-lateral group (Algeria, Tunisia, Italy, Austria, and Germany) in early 2026, to advance 
the initiative. The Trans-Mediterranean Renewable Energy and Clean Tech (T-Med) flagship 
initiative,  launched  under  the  Pact  for  the  Mediterranean,34  will  also  contribute  to  the 
realisation of this Energy Highway.   

34 Joint communication on the Pact for the Mediterranean - Middle East, North Africa and the Gulf 

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8.  Southwest hydrogen corridor from Portugal to Germany 

The Southwest hydrogen corridor will transport decarbonised hydrogen from production sites 
in Southwest Europe to industrial demand centres, accelerating the decarbonization of hard-
to-abate  sectors  and  enabling  efficient  integration  of  renewable  energy.  The  initiative 
encompasses key PCI projects between Portugal, Spain, and France, as well as internal 
links extending towards Germany. Together, these projects aim to deliver up to  2 million 
tonnes  of  renewable  hydrogen  annually  by  2030,  strengthening  energy  security  and 
flexibility across the region. 

However,  progress  has  been  limited,  and  several  challenges  persist,  including  the  lack  of 
uptake,  delays  in  regulatory  implementation,  difficulties  in  securing  financing  and 
coordinating  de-risking  measures  along  the  corridor,  and  strategic  priorities  across  Member 
States to ensure the corridor delivers shared benefits for all participants. 

Short-term  actions:  Strong  coordination  and  renewed  political  support  through  the  South-
West  High-Level  Group  will  be  essential  to  accelerate  progress.  The  upcoming  Ministerial 
Meeting of the High-Level Group on South-West Europe in Q1 2026 will help step up efforts 
and  facilitate  exchanges  among  Member  States  on  key  technical,  financial,  and  de-risking 
aspects of the corridor’s development.  

15