The European Commission has unveiled plans to eliminate key energy transmission bottlenecks across the European Union in an effort to stabilise electricity prices and strengthen the bloc’s internal energy market. The initiative was announced by Commission President Ursula von der Leyen during a conference on EU competitiveness held in Brussels on Tuesday. The forthcoming European Grids Package, scheduled for release before the end of 2025, will focus on eight critical infrastructure bottlenecks currently impeding the free flow of electricity across EU member states.
These include strategic corridors such as the Pyrenees between Spain and France, the Trans-Balkan corridor, the Øresund Strait connecting Denmark and Sweden, and the Sicilian Canal linking Italy to the central Mediterranean. Von der Leyen stated that the Commission will directly intervene to address these infrastructure gaps, including through financial support where national efforts fall short. She emphasised the urgency of ensuring electricity can be transported efficiently across borders, particularly in regions that experience congestion or supply imbalances.
The plan also includes a new Energy Highways initiative designed to facilitate the integration of electricity markets and improve the resilience of the EU grid system. The proposed measures are intended to accelerate the construction and upgrade of cross-border infrastructure projects essential to grid connectivity. Among the projects expected to benefit from the initiative are the Great Sea Interconnector, which aims to connect Cyprus to the continental grid via Greece, and improved interconnection lines between the Iberian Peninsula and the rest of Europe.
EU launches electricity grid overhaul across member states
These projects have been identified as priorities under the EU’s Ten-Year Network Development Plan and are eligible for support under the Connecting Europe Facility. The announcement follows earlier commitments made under the EU Action Plan for Grids and Storage, which was introduced in February 2025 to streamline permitting processes and enhance funding mechanisms for energy infrastructure. That plan highlighted the importance of building an integrated and reliable electricity network to support the EU’s clean energy transition goals and reduce dependency on external sources.
The Commission confirmed that all proposed measures will comply with existing EU law, including state aid rules and environmental regulations. A formal legislative package is expected to be presented to the European Parliament and Council in the fourth quarter of 2025. Electricity prices across the EU have remained volatile since the 2021–2023 energy crisis, with regional disparities driven in part by limited cross-border transmission capacity.
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Market data from the European Union Agency for the Cooperation of Energy Regulators (ACER) indicates that price convergence between member states remains uneven, with certain regions regularly experiencing elevated costs due to network congestion. The European Commission’s plan aims to address these disparities by removing structural barriers within the energy system and strengthening internal solidarity among member states. The targeted grid investments are aligned with the EU’s broader objectives under the Green Deal and REPowerEU strategies, which prioritise decarbonisation, energy security and market integration.
Von der Leyen confirmed that the European Investment Bank and other financial instruments may be mobilised to support implementation of key infrastructure projects. Final decisions on funding allocations will be made following the adoption of the Grids Package later this year. The European Commission will continue working closely with national regulators, transmission system operators, and stakeholders in the energy sector to ensure timely execution of the proposed measures. – By EuroWire News Desk.