– Europe needs to double its average annual distribution grid investments from €33bn to €67bn between 2025 and 2050, according to Eurelectric’s report.
– The investment is necessary to accommodate the projected shift towards electrification and renewables, with electricity expected to account for 60% of final energy consumption by 2050.
– Failure to meet the investment target could jeopardize connections for decarbonization technologies, while investing in new technologies could help reduce costs by 18%.
Europe needs to double its annual distribution grid investments from €33bn to €67bn between 2025 and 2050 to accommodate the increasing shifts towards electrification and renewables, according to a report by Eurelectric. The report predicts that electricity will account for 60% of final energy consumption by 2050, with a sixfold rise in renewable capacity. This investment is crucial for enhancing grid reliability, generating jobs, and connecting crucial decarbonization technologies. E.ON CEO Leonhard Birnbaum emphasized the importance of additional grid capacity for a successful energy transition, highlighting the high cost of not investing in grid infrastructure. Eurelectric Secretary General Kristian Ruby suggested that proper measures and new technologies could reduce the necessary investment to €55bn while also minimizing the impact on distribution prices. The report emphasizes the need for Europe to electrify in order to ensure the successful expansion of grids. Power Technology is covering the Power Summit 2024 where these topics are being discussed, and interviews are available with reporter Jackie Park for more insights.