Europe’s electricity grid is failing to keep pace with the renewable power transformation despite pockets of good practice, according to a report from Beyond Fossil Fuels, E3G, Ember and the Institute for Energy Economics & Financial Analysis.

Outdated planning and obsolete mandates are slowing the upgrade and build-out of Europe’s electricity highways, delaying the connection of renewable and flexibility projects that can make energy cleaner and more affordable.

With the EU announcing its roadmap to phase out remaining Russian fossil fuels, grids will be essential not only to unlocking the homegrown renewables and electrification needed to end Europe’s reliance on imported fossil fuels, but also to advancing the decarbonisation of Europe’s economy with cost-effective sources of power.

The analysis of 32 electricity transmission system operators (TSOs) across 28 countries found that many were still using outdated scenarios rooted in old government targets and market assumptions. These scenarios do not reflect the exponential growth in renewables on the ground and act as a systemic handbrake on building a flexible grid capable of absorbing increasingly high shares of renewables. The recent power outage in Spain and Portugal (www.iotm2mcouncil.org/iot-library/news/smart-energy-news/spain-blackout-warning-to-europes-grid-operators) served as a reminder of the critical importance of grid upgrades and governance as the cornerstone of energy resilience.

The report warns that unless grid planning rules and mandates of TSOs and regulators are updated, Europe risks a self-fulfilling prophecy whereby fossil gas appears necessary simply because grid operators never adequately planned for a power system based on renewables. Grid modernisation is essential to support the electrified economy of the future. The report’s authors call for more robust governance and oversight from governments and regulators, to ensure that grid planning, operations and investments are fit-for-purpose.

It found that 1700GW of renewable energy projects across 16 countries were stuck in grid connection queues, over three times the capacity additions needed to reach EU energy and climate targets for 2030. Also, €7.2bn in renewable electricity was curtailed across just seven countries in 2024, meaning clean energy was wasted, while power generators were still compensated, with the costs falling on electricity bill payers.

Only five TSOs are considering scenarios for a power system where coal and fossil gas are replaced with renewables by 2035, despite 13 countries aiming for decarbonised power sectors in the same timeframe.

Ten of 34 TSOs operate a form of legal ownership unbundling, in which the TSO is still part of a portfolio of companies involved in generating or selling electricity. The UK has shown good practice by establishing the National Energy System Operator (NESO), a public body separate from the TSO National Grid responsible for planning.

Just five energy regulators incorporate and acknowledge climate neutrality in their responsibilities, while 11 TSOs make no reference to climate targets at all.

“Europe needs a great grid build-out to scale up homegrown renewables, drive economic growth, and break free from risky fossil fuel markets,” said Juliet Phillips, energy campaigner at Beyond Fossil Fuels (beyondfossilfuels.org). “Governments urgently need to dislodge these fatbergs from the planning system so that grid operators can get renewable projects hooked up. Providing a climate mandate to TSOs and their regulators can ensure they make the long-term investments and decisions needed to future-proof our energy system. It’s the only way to break free from fossil fuel imports, and cut bills and emissions.”

Vilislava Ivanova, research manager at E3G (www.e3g.org), added: “Europe’s electricity grid is not modernising fast enough, and that must change. To unlock a resilient, fossil-free economy, governments must send clear political signals about the need to meet climate targets, ensuring grid operators plan with the ambition and foresight the transition demands. Only through political leadership, independent governance and clear incentives can we ensure grids become enablers, not barriers, of Europe’s clean and competitive energy future.”

Read the report at beyondfossilfuels.org/wp-content/uploads/2025/05/How-Europes-grid-operators-are-preparing-for-the-energy-transition.pdf.