Money on the line: scaling electricity interconnection for Europe’s energy future

Europe’s current pipeline of cross-border transmission projects falls short of what is required for an optimised power system in 2040.

Key findings show that expanding interconnections is essential to enhance security of supply, integrate higher shares of renewables, and reduce system costs. The study highlights that limited cross-border capacity constrains markets, slows decarbonisation, and dampens the benefits of a unified European energy market.

Several structural and regulatory barriers impede progress, including permitting delays, consenting processes, and uneven national approaches to project planning. The report argues for streamlined procedures, predictable timelines, and harmonised regulations to accelerate project delivery without compromising environmental and local stakeholder considerations.

Policy recommendations emphasize:

Accelerated permitting and streamlined cross-border approval processes.
Coordinated planning across regions to identify the most beneficial interconnections.
Incentives and risk-sharing mechanisms to attract private finance for large-scale interconnection projects.
A clear, long-term regulatory framework to enable investment and ensure reliable cost recovery.

The analysis concludes that timely expansion of electricity interconnections is a pivotal lever for Europe’s energy transition, with the potential to lower system costs, enhance reliability, and support higher penetration of renewable generation across the continent.

Author’s summary: Scaling cross-border interconnections is crucial for Europe’s 2040 power system, unlocking renewables, cutting costs, and strengthening energy security through coordinated planning and streamlined regulation.

Ember-climate.org — 2025-12-01

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