Investment in electricity networks in the EU will need to increase from an average of €33 billion to €67 billion per year from 2025 to 2050 to enable mass electrification of transport, heating, and industry, to integrate renewable energy sources, and to withstand more frequent extreme weather conditions and cyber threats. This is according to Eurelectric's "Grids for Speed" research presented today at the "Power Summit 2024" taking place in Athens.

The €67 billion represents around 20% of EU spending on fossil fuel imports in 2023, while modernising the grids will significantly reduce fossil fuel imports, create more than 2 million jobs, deliver greater energy savings, and provide more reliable energy distribution while accelerating the carbonisation of the European economy. At the same time, they will contribute to saving the EU €309 billion every year from fossil fuel imports between 2040 and 2050.

Beyond investment, innovative network strategies such as proactive investment, optimal asset management, and grid-friendly flexibility are needed, which could reduce the required investments to €55 billion per year.Conversely, a lack of investment would jeopardise 74% of future connections to key carbon technologies such as electric vehicles (EVs), heat pumps, and renewables.

According to the research, by 2050, electricity will account for 60% of total energy use, compared to 23% today. Renewable energy capacity will have increased sixfold by then compared to 2020, with 70% of renewable energy generation and storage connected at the distribution level.