The European Commission announced on 10 December 2025 a comprehensive framework to modernise the EU’s energy infrastructure, comprising the European Grids Package and the Energy Highways initiative. The proposals seek to accelerate the deployment of renewable energy, enable efficient energy flow across Member States and reduce electricity costs through improved cross-border connectivity.
European Grids Package
The European Grids Package marks a shift toward a unified EU-wide approach to energy infrastructure planning and development. The framework introduces streamlined permitting procedures and establishes fair cost-sharing mechanisms for cross-border projects, replacing fragmented national approaches with coordinated infrastructure strategies.
To future-proof grid infrastructure, the Commission proposes enhanced financing mechanisms including cost-sharing and project bundling arrangements. Cross-border energy infrastructure delivers benefits beyond the territories where it is constructed, making transparent cost allocation essential to prevent disproportionate burdens on local consumers. Infrastructure projects can be bundled through special purpose vehicles to simplify financing structures and attract additional private investment.
The package includes two key legislative proposals that will proceed to the European Parliament and Council under the ordinary legislative procedure: a revised Trans-European Network for Energy (TEN-E) Regulation and an updated Directive to accelerate permit-granting procedures for infrastructure projects.
Energy Highways: Eight Priority Infrastructure Corridors
The Commission has designated eight Energy Highways to address the EU’s most urgent infrastructure needs and bottlenecks requiring additional short-term support and political commitment. Announced by President Ursula von der Leyen during her 2025 State of the Union address, these corridors were selected based on their strategic importance to completing the Energy Union and the level of political support from EU Member States necessary for successful implementation.
The Commission is committed to immediately fast-tracking the Energy Highways through enhanced political coordination, drawing on Regional High-Level Groups, mobilising support from European coordinators and working closely with the Energy Union Task Force, extending outreach beyond EU Member States where necessary. Each project will receive priority designation at both EU level, with the Commission supporting Member States in granting them matching national priority.
Market Context and Infrastructure Drivers
Current electricity price disparities across the EU underscore the urgency of infrastructure integration. Industrial electricity prices in the EU reached €0.199 per kWh in 2024, compared to €0.082 in China and €0.075 in the US. Household electricity prices in the first half of 2025 varied significantly, from €0.3835 per kWh in Germany to €0.1040 per kWh in Hungary, while non-household rates ranged from €0.2726 per kWh in Ireland to €0.0804 per kWh in Finland.
The Commission identifies insufficient investment in and integration of energy infrastructure as a key reason for these disparities. Several Member States remain off-track to meet the 15% electricity interconnection target by 2030, hindering the development of a genuinely integrated Energy Union. The EU’s reliance on imported fossil fuels, with 98% of oil and gas consumed being imported as of 2022, exposes the bloc to price volatility and geopolitical risks, with fossil fuels accounting for 70% of gross available energy use.
Scaled-Up Funding and Investment Mechanisms
Scaling up financial support is central to the package’s implementation strategy. As part of the 2028–2034 Multiannual Financial Framework, the Commission has proposed a five-fold increase in the Connecting Europe Facility (CEF) Energy budget, raising allocations from €5.84 billion to €29.91 billion. Public funding will be complemented by mechanisms to leverage private investments through the forthcoming Clean Energy Investment Strategy.
Implementation and Next Steps
The Commission will continue collaborating closely with Member States and stakeholders to implement key cross-border energy infrastructure projects, as recently published under the second Union list of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs). This collaboration is critical for swift delivery of the Energy Highways initiative and acceleration of permitting for renewable energy projects, energy storage facilities and recharging infrastructure.
Dan Jørgensen, Commissioner for Energy and Housing, said: “A truly interconnected and integrated energy system is the foundation of a strong and independent Europe. To achieve it, we need an energy infrastructure network of cables, pipes and grids that is up to date, fully interconnected, and that enables clean, affordable, homegrown energy to flow freely and securely to every corner of our Union. This is exactly what we are proposing today: a common European energy project that supports affordable living, economic competitiveness, security and decarbonisation.”