Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal

The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The European Commission has introduced an extensive plan aimed at accelerating the modernization of Europe’s electricity grids. This ambitious initiative anticipates investments totaling around 584 billion euros by 2030 to enhance energy infrastructure. The goal is to facilitate the integration of the European electricity market by speeding up cross-border interconnection construction and simplifying regulatory procedures. The plan emphasizes that current delays directly hinder Europe’s economic competitiveness.

Regulatory revisions and new financial mechanisms
National regulators are urged to adapt their tariff methodologies to better accommodate anticipated investments. The proposed regulatory framework notably simplifies administrative procedures, significantly reducing authorization times for cross-border projects. Concurrently, financial support amounting to 1.5 billion euros will be allocated to manufacturers producing components for European electrical grids. The European Investment Bank (EIB) will play a central role by facilitating access to necessary financing.

The Clean Industrial Deal supports strategic sectors
In conjunction with grid reforms, the European Commission is launching the Clean Industrial Deal, which aims to mobilize at least 100 billion euros through a new Industrial Decarbonisation Bank. This initiative specifically targets energy-intensive industries such as metallurgy, chemicals, and heavy industry. The announced objective is to promote innovative industrial projects capable of reducing energy costs while supporting the competitiveness of European businesses.

A pilot program valued at 500 million euros will also be introduced to secure renewable energy Power Purchase Agreements (PPAs). Additionally, a circular economy plan and joint purchasing strategy for critical raw materials will complement these measures, clearly aimed at reinforcing Europe’s industrial and economic autonomy. These mechanisms are intended to mitigate the impact of fluctuating energy prices on industrial costs.

Strategic stance of the European Parliament
The European Parliament strongly endorses these initiatives. In a recent report adopted by a large majority, parliamentarians have clearly expressed their support for swiftly reinforcing Europe’s electrical grids, described as the “backbone” of the EU energy system. They also highlight the importance of enhancing the Carbon Border Adjustment Mechanism (CBAM), deemed essential to preserving the competitiveness of European industries against global pressures.

Operational and technical challenges
Despite these ambitious goals, several operational challenges remain. Technical and administrative complexities associated with cross-border projects may continue to slow the practical implementation of these reforms. Nevertheless, the European Union has acknowledged these issues by committing to regularly updating the regulatory framework in close consultation with national regulators and industry stakeholders.

Expected impacts on sector companies
Energy sector companies can now integrate these reforms into their long-term investment strategies. Improved access to public and private financing presents significant new development opportunities. However, ultimate success will largely depend on the speed of project execution and the ability of European institutions to maintain a stable regulatory environment over the long term.

As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.
ERCOT’s grid adapts to record electricity consumption by relying on the growth of solar, wind and battery storage to maintain system stability.
The French government will raise the energy savings certificate budget by 27% in 2026, leveraging more private funds to support thermal renovation and electric mobility.
Facing opposition criticism, Monique Barbut asserts that France’s energy sovereignty relies on a strategy combining civil nuclear power and renewable energy.
The European Commission is reviving efforts to abolish daylight saving time, supported by several member states, as the energy savings from the practice are now considered negligible.
Rising responses to UNEP’s satellite alerts trigger measurement, reporting and verification clauses; the European Union sets import milestones, Japan strengthens liquefied natural gas traceability; operators and steelmakers adjust budgets and contracts.
The European Commission unveils a seven-point action plan aimed at lowering energy costs, targeting energy-intensive industries and households facing persistently high utility bills.
The European Commission plans to keep energy at the heart of its 2026 agenda, with several structural reforms targeting market security, governance and simplification.
The new Liberal Democratic Party (LDP)–Japan Innovation Party (Nippon Ishin no Kai) axis combines a nuclear restart, targeted fuel tax cuts and energy subsidies, with immediate effects on prices and risk reallocations for operators. —
German authorities have ruled out market abuse by major power producers during sharp price increases caused by low renewable output in late 2024.
A new International Energy Agency report urges Maputo to accelerate energy investment to ensure universal electricity access and support its emerging industry.
Increased reliance on combined-cycle plants after the April 28 blackout pushed gas use for electricity up by about 37%, bringing total demand to 267.6 TWh and strengthening flows to France.
The United States announces a tariff increase beyond the 10% base rate targeting several Colombian products. Bogotá has recalled its ambassador. The detailed list of tariff lines has not yet been published, while Colombia’s ban on coal exports to Israel remains in effect.
The president-elect outlines a pro-market agenda: gradual reform of fuel subsidies, review of Yacimientos de Litio Bolivianos (YLB) lithium contracts, and monetization of gas transit between Argentina and Brazil, prioritizing supply stabilization.
A three-year partnership has been signed between Senegal and two Quebec-based companies to develop the country’s geoscientific capacity and structure its energy sector through technological innovation.
The South African government plans 105,000 MW of additional capacity by 2039 to redefine its energy mix, support industrialisation, and strengthen supply security.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.