European Commission Publishes New EU Grids Package to Accelerate Renewables and Energy Storage

New rules aim to unlock grid capacity, speed up permitting, and align infrastructure planning with Europe’s climate goals

The European Commission has officially published its long-awaited EU Grids Package, a comprehensive set of legislative proposals and policy guidance designed to remove grid bottlenecks, accelerate renewable energy deployment, and strengthen Europe’s electricity infrastructure for a decarbonised future.

The package combines binding legislative amendments with non-legislative guidance, addressing one of the most critical constraints in Europe’s energy transition: grid access and system flexibility.

As renewable generation continues to grow faster than grid expansion, the Grids Package signals a strategic shift—from simply building more infrastructure to using existing grid assets more efficiently, while accelerating investments where they are most needed.

What’s Included in the EU Grids Package?

The Commission’s Grids Package consists of five core elements:

• Grid Package Communication

• Permitting Amendments

• TEN-E (Trans-European Networks for Energy) Amendments

• Grid Connection Guidance

• Contracts for Difference (CfDs) Guidance

Together, these measures aim to streamline permitting, improve cross-border planning, and incentivise grid-friendly renewable and storage projects.

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Grid Connection Guidance: A Turning Point for Hybrid Solar and Storage

According to SolarPower Europe, the most impactful element of the package is the Grid Connection Guidance, which provides Member States with clear direction on how to connect renewable projects more intelligently.

Walburga Hemetsberger, CEO of SolarPower Europe, described the guidance as “hitting the nail on the head,” highlighting its focus on hybrid solar + storage projects and flexible connection agreements.

For the first time at EU level, regulators are explicitly encouraged to:

• Prioritise grid-friendly projects

• Enable flexible grid connections, where assets adjust charging or discharging during congestion

• Remunerate flexibility services that optimise grid usage

This approach allows Europe to extract significantly more value from existing grid infrastructure, reducing curtailment and accelerating project deployment.

Faster Permitting for Energy Storage: A Critical Breakthrough

The Commission has also introduced targeted permitting amendments specifically for energy storage, addressing a long-standing regulatory gap.

These changes are expected to:

• Speed up permitting for stand-alone battery storage

• Enable faster approval of hybrid renewable + storage plants

• Reduce administrative uncertainty for developers and investors

SolarPower Europe considers this a critical step toward scaling battery storage tenfold in Europe by 2030, a prerequisite for integrating high shares of solar and wind.

At the same time, the association cautions lawmakers to keep amendments strictly focused on permitting, warning that broader legal revisions could undermine investment certainty.

TEN-E Amendments: EU Takes the Lead on Grid Planning

A major structural shift comes through amendments to the TEN-E Regulation, which governs cross-border energy infrastructure.

For the first time, the European Commission will:

• Establish a central EU-level planning scenario for electricity and hydrogen networks

• Ensure grid development aligns with energy security and climate targets

• Oversee the creation of 8 Energy Highways, enabling strategic power flows across Europe

• Elevate the Energy Efficiency First principle within network planning

This marks a move away from fragmented national planning toward a coordinated European grid strategy.

What’s Still Missing: The Role of Distribution System Operators

Despite the package’s ambition, SolarPower Europe highlights a key omission: Distribution System Operators (DSOs).

DSOs play a central role in:

• Managing congestion at local grid levels

• Enabling demand response and decentralised flexibility

• Integrating rooftop solar, EV charging, and behind-the-meter storage

Without proper remuneration frameworks for DSOs to deploy non-wire solutions—such as demand response and smart flexibility—the full potential of the Grids Package may remain unrealised.

What Happens Next?

• Permitting and TEN-E amendments will now proceed through the EU’s standard legislative process

• Communications and guidance documents are non-binding but will shape implementation across Member States

For developers, investors, and energy system operators, the message is clear: Europe is shifting from reactive grid expansion to proactive system optimisation, with energy storage and flexibility at the centre of the strategy.

Why This Matters for the Energy Transition

The EU Grids Package lays critical groundwork for:

• Scaling renewable energy without increasing curtailment

• Accelerating battery storage deployment

• Improving grid resilience and efficiency

• Aligning infrastructure investment with climate neutrality goals

If implemented effectively, it could become one of the most consequential policy enablers for Europe’s clean energy transition this decade.