Electricity companies ask to double investment in networks in Europe to achieve objectives

MADRID, 24 Sep.

Electricity companies ask to double investment in networks in Europe to achieve objectives


Eurelectric, the association of large European electricity companies, has warned of the urgency of accelerating the expansion of the network and digitalization to achieve the objectives of the ecological transition, for which it will be necessary to double investment in this area by 2050.

In its 2023 Energy Barometer, the employer's association, to which the Spanish company Aelec belongs - of which Iberdrola, Endesa and EDP Spain are part - points out that an 84% increase in investment will be necessary from this year to 2050, compared to the average of 7.5% since 2020.

Thus, he emphasizes that the general rule is that 0.67 euros should be invested in the network for every euro invested in generation capacity, a figure that is currently barely close to 0.30 euros.

The general secretary of Eurelectric, Kristian Ruby, has assured that more lines, more digitalization and more climate resilience are needed for networks to adjust to the net zero level.

"This requires a change in the regulatory approach. Grid operators must be allowed to make early investments so that we can start preparing for further electrification," he said.

In its report, the electricity industry pointed out positive trends, after overcoming the peak of the energy crisis, although it called to urgently accelerate the development of infrastructure to address the challenges of decarbonization and security of supply.

In this sense, he warned that greater investments and improved infrastructure are urgently needed to enable the projected tripling of electrification rates by 2050, as the current capacity of the distribution network to integrate new renewable energy and decentralized assets is limited.

Thus, he stated that to offer the electricity system of the future (the so-called decentralized model), Europe's transmission and distribution networks must be strengthened and digitalized to absorb all the capacity available today, while building new infrastructure and expanding the number of kilometers to add them.

Likewise, he highlighted that smart meters, a key technology for network management and digitalization, have reached 56% of EU customers - in Spain it reaches almost 100% - but they are making much less progress in Europe. central and eastern.