European Union to Enhance Electrical Infrastructure and Initiate 'Energy Highways' Project
The European Union is taking significant steps to modernize its energy infrastructure and boost its renewable energy capacity. According to Ursula von der Leyen, President of the European Commission, a new initiative has been announced targeting eight key energy bottlenecks across the EU.
In a recent address, von der Leyen expressed the need for change, highlighting the fact that more than 70% of the EU's electricity now comes from low-carbon sources. To further this transition, the Commission will propose a new "grid package" and an "energy highways" initiative.
The modernization and interconnection of national electricity grids in several European countries, including Portugal, Spain, Italy, France, Germany, and the Czech Republic, will be supported by the Commission. This move aims to enhance renewable energy integration and network resilience.
The Commission's funding for these projects will primarily come via the European Investment Bank (EIB). The EU's internal market, von der Leyen stated, remains incomplete, and existing trade barriers within the bloc act as de facto tariffs.
The Commission's efforts to strengthen the EU's power grid come in the context of a broader push for digital infrastructure. Von der Leyen emphasized that digital infrastructure should serve industrial and innovation goals, and the Commission will provide funding where necessary to overcome infrastructure gaps.
The EU's green energy transition is not just a catch-up strategy; Europe is among the frontrunners. Last year, the EU reduced its fossil fuel bill by €60 billion ($64.5 billion) and invested a record €40 billion ($43 billion) in wind energy in the first half of 2025 alone.
Moreover, there has been a 67% increase in European businesses adopting Artificial Intelligence (AI) this year. The Commission is also supporting the development of AI factories, with plans to create giga factories from the best of them.
The push for a greener and more competitive EU is not without its challenges. The Draghi Report, released a year ago, warned that the EU's global competitiveness had weakened due to overlapping crises, including the COVID-19 pandemic, supply chain disruptions, the war in Ukraine, and rapid technological change.
However, von der Leyen remains optimistic, stating that decarbonisation and economic competitiveness depend on lower energy costs. She believes that by strengthening the EU's power grid and embracing renewable energy, Europe can not only reduce its reliance on fossil fuels but also position itself as a global leader in the green energy transition.
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