€7.2 billion of renewable energy generation lost by 2024 due to lack of transmission capacity
European transmission operators are ill-prepared for the energy transition required to achieve 2030 climate targets, according to a report by Beyond Fossil Fuels with E3G, Ember, and the Institute for Energy Economics and Financial Analysis (IEEFA). This report analyzed 32 transmission operators across 28 countries, revealing Europe’s electricity grids as major barriers to clean energy deployment, with 1,700 GW of renewable energy stalled in connection queues. This figure is over three times more than what is needed to achieve the EU’s 2030 climate goals, according to data from Strategic Energy.
In 2024, grid capacity constraints resulted in a loss of 7.2 billion euros of renewable energy in seven European countries. This not only stifles investment but also threatens energy security by maintaining reliance on fossil fuels. Juliette Phillips from Beyond Fossil Fuels states, “Europe needs a massive expansion of its electricity grid to enhance renewable energy generation, economic growth, and independence from fossil fuel markets.”
Despite the situation, many European transmission operators still project a significant role for gas until 2035, conflicting with decarbonization goals. Only five operators have modeled a fully renewable system, and just 13 have specific climate commitments or targets. This disparity between the climate crisis and infrastructure planning prompted a series of specific recommendations to national governments.
The recommendations include revising the legal mandates of electricity transmission operators and regulators to align with climate objectives, and establishing independent public authorities for grid planning to avoid conflicts of interest and adopt a long-term vision. The report cites the UK as an example, where the National Energy System Operator (NESO) operates autonomously from National Grid.
Poland’s 2024 market reforms, which introduced demand-side flexibility signals and capacity contracts benefiting storage, and Denmark’s reforms by Energinet, enabling 550 organizations to balance the grid, are also highlighted. The report stresses that increasing storage capacity, managing demand flexibly, and prioritizing operational renewable energy connections are crucial for a clean, secure, and affordable energy system. Transmission operators must adopt best practices and take an active role in the energy transformation. Phillips warns, “A climate mandate for transmission operators and their regulators can secure the future energy system through long-term investments and decisions.”
The warning is explicit: without rapid, strategic grid expansion, Europe cannot fulfill its climate commitments, leverage renewable economic potential, or reduce fossil fuel dependency. The energy transition is underway, but electricity grids are unprepared.
Illustrative Photo by Pixabay: https://www.pexels.com/photo/blue-solar-panel-board-356036/
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