expected welfare gains had TSOs in the Core region made 70% of capacity available for cross-zonal electricity trade in 2024.
ACER proposes improvements to the European grids legal framework
ACER proposes improvements to the European grids legal framework
What is it about?
Ahead of the European Commission’s Grids Package proposals (expected in Q4 2025), ACER sets out its recommendations for revising the current legal framework for grids.
Europe’s power grids need to be upgraded, expanded and optimised to connect more planned renewables and thus speed up a cost-efficient clean energy transition.
The European Commission estimated that investment needs for electricity grids will amount to €730 billion for distribution and €477 billion for transmission by 2040.
The European Commission is developing a Grids Package to improve and simplify the current legal framework. This includes the revision and simplification of the 2022 Trans-European Energy Networks Regulation (TEN-E Regulation), a key framework for European energy infrastructure development.
ACER's recommendations address network development aspects (rather than permitting or financing) to improve the efficiency of the EU network planning process and support a cost-effective energy transition. ACER’s focus is on key key areas of network planning and assessment, including:
- Scenario development and the need for improved coordination within and between ENTSO-E and ENTSOG.
- Identification of infrastructure needs.
- Selection and monitoring of Projects of Common Interest (PCIs).
- Cross-border cost allocation (CBCA).
ACER’s proposals aim to streamline procedures and accelerate the development of key energy infrastructure while reinforcing transparency, regulatory oversight and network planning governance across the EU.
What does ACER recommend?
ACER’s recommendations are grouped into two categories: measures aimed at strengthening the TEN-E process to address existing challenges, and those aimed at simplifying the process.
ACER proposes practical measures to simplify the Ten-Year Network Development Plans (TYNDPs), streamline the selection and monitoring of Projects of Common Interest (PCIs) and recognise the value of alternative solutions, such as non-wire options, to increase electricity grid capacity. ACER recommends to:
- Strengthen regulatory oversight: enhance ACER’s role in overseeing key methodologies for scenario development and infrastructure planning at the European level.
- Improve identification and prioritisation of infrastructure needs: establish effective mechanisms where possible within the current framework to ensure that critical infrastructure gaps are identified and addressed with the most suitable solutions.
- Streamline and simplify TEN-E processes: build on lessons learned from network development, PCI selection and PCI monitoring for more efficient and transparent processes.
While some of ACER’s recommendations require amendments to the current legal framework, others could be achieved through better implementation of the existing regulatory framework.
What’s next?
- The European Commission proposals to revise the TEN-E Regulation as part of the upcoming European Grids Package are expected in Q4 2025.
- ACER stands ready to engage in discussions with the EU co-legislators and stakeholders.