Is energy grids development keeping pace with Europe’s evolving needs?

ACER’s 2026 Monitoring Report on energy infrastructure development in Europe examines whether electricity, gas and hydrogen networks are adapting to changing energy needs, and what this means for investment costs, delays and consumer costs.  

As renewable generation expands and electricity demand grows (driven by heat pumps, electric vehicles and data centres), electricity grids need to accommodate new connections and shifting generation and consumption patterns. Meanwhile, gas networks must adapt to lower demand, and hydrogen is still at an early stage. Developing the right infrastructure, efficiently and on time, will determine whether Europe can meet its decarbonisation goals and keep energy affordable for households and industry.

What trends did ACER monitoring find?  

• Electricity grid investment is rising fast. Annual investment in electricity transmission nearly tripled, from €10.4 billion in 2019 to €30.5 billion in 2025.
• Cross-border projects are often delayed. On average, 22% of electricity transmission projects of common interest (PCIs) and mutual interest (PMIs) is delayed each year, mainly due to lengthy permitting procedures. A one-year delay can cost around €4 billion in lost economic welfare.  
• Electricity grid congestion is costly. Remedial actions taken by transmission system operators (TSOs) to relieve congestion cost European consumers €5.4 billion in 2025, over 25% more than in 2024.  
• Income collected to manage electricity grid congestion is largely set aside for later use. Annual congestion income from day-ahead markets exceeded €9 billion in 2025, seven times the 2019 level. Yet, 60% (about €12.5 billion) of the total available is set aside rather than reinvested in cross-border grids or used to reduce tariffs.
• Rising electricity network costs weigh on household bills. Electricity network costs for EU households rose by 40% between 2019 and 2025, reaching 84 EUR/MWh. They now account for around 28% of the average electricity bill.
• Gas networks are adapting to lower demand. Gas investments are broadly stable, while demand remains 16% below its 2017-2021 baseline. Average transmission tariffs increased by 40% between gas years 2020/2021 and 2024/2025.
• Hydrogen networks are at an early stage. EU electrolyser capacity (used to produce hydrogen with electricity) reached 0.49 GW, well below the 30-58 GW target envisaged for 2030 in national strategies and EU scenarios.

What are ACER’s recommendations?  

• Make better use of existing networks through demand response, market-based congestion management, full implementation of the 70% cross-border capacity requirement, cost-reflective network tariffs and grid-enhancing technologies.
• Improve infrastructure planning and delivery with transparent, more integrated planning across electricity, gas and hydrogen networks, and simpler, more predictable permitting procedures.
• Address shortcomings in cost-sharing mechanisms by distributing network costs fairly among users over time and reviewing how costs and benefits of cross-border projects are shared.