Europe’s power system is undergoing a massive transformation which is challenging the reliability of its infrastructure. The massive influx of renewables has increased our power supply variability, grid connection requests have skyrocketed in EU countries – Lithuania alone registered a 1425% increase in 2022 – and so has grid congestion due to the many distributed assets coming online. Meanwhile, cyber-attacks and extreme weather events have only grown in number.

Existing technologies can help face this complexity, optimise the existing grid, facilitate renewables integration and lower the overall investment bill according to Eurelectric’s report on Technologies supporting Grids for Speed.

Also see: Increasing focus on integrated PV development

“When reinforcing our grids, we must do it in a way that keeps system costs in check. Today we launch new tools to help policymakers control costs while increasing investments.”– said Eurelectric’s Secretary General Kristian Ruby. Real-life examples are:

On load tap changer transformers to keep voltage levels in check

Maintaining voltage levels in an adequate array is crucial to protect consumers equipment, but it’s not easy. Today voltage fluctuations are more common due to variable wind and solar power generation as well as the more dynamic loads caused by EV charging. On Load Tap Changers (OLTC) can dynamically regulate voltage without having to switch off transformers, unlike manual tap changers.

During periods of high power supply and low demand, distribution system operators (DSOs) can tap the transformer down to maximise renewables’ integration allowing the voltage level to rise while staying within limit. During peak demand, on the contrary, DSOs can tap the transformer position up to, for example, maximise electric vehicle (EV) penetration, allowing the voltage level to decrease thus staying within limit. This becomes practically infeasible if carried out manually, considering how frequently this would happen, making OLTC indispensable.

Their installation and operation, however, require skilled resources, advanced monitoring and control systems. In addition, OLTCs must be coordinated with other smart devices and the remaining grid equipment to ensure an optimal system performance.

Dynamic line rating to maximise grid capacity in real time weather

The conductivity of an overhead distribution power line or underground cable varies in real time based on temperature, solar radiation, wind speed and direction. Weather conditions can affect the power lines’ temperature and how far down they hang, a characteristic known as sag. The lines cannot sag too much, as they risk touching vegetation and cause a power cut.

Traditionally, grid operators have not been able to quantify external conditions to determine a line’s capacity at each period of time. DSOs conventionally take extra precautions when determining a maximum capacity, making sure that lines are stable even in the worst-case scenario. Such approach is known as conservative or static line rating. Dynamic line rating (DLR), instead, can measure the maximum current a conductor can safely carry in real time, thus optimising grid capacity at any time.

This is possible thanks to sensors and control systems. For instance, on a cool, cloudy and windy day, more power can flow through an overhead line than on a hot, sunny and calm day. DLR not only reduces the risk of power cuts, but also mitigates grid congestion and contributes to security of supply. Their implementation however can be hampered by high upfront costs and lack of standardised regulation for its operation.

High-temperature low sag conductors to increase power line capacity

High Temperature Low Sag (HTLS) conductors are conductors specifically engineered to handle higher operating temperatures with minimal sag compared to conventional ones. Traditional aluminium conductors tend to sag significantly under high temperatures limiting the amount of power that can be transmitted and posing safety risks. HTLS conductors, instead, are designed to operate efficiently at temperatures up to approximately 250°C, compared to the typical 90°C to 150°C range for conventional ones thanks to the use of advanced materials.

Also see: Double investments in power distribution or lose race to net-zero

These technologies are tailored to specific situations. Their use will therefore depend on the issue, and topology at hand. To accelerate their deployment, Eurelectric identified four enablers:

1. Policy: regulation should adopt a forward-looking approach that incentivises investments in in a neutral way. Existing disincentives such as investment caps and outdated remuneration structures should be urgently addressed, especially if using the technology increases operating expenditure (OPEX).
2. Innovative investment strategies: new ways of working are necessary to support the implementation of these technologies. These include, for instance, anticipatory investments and higher flexibility.
3. Collaboration: partnerships among governments, regulators, system operators, market parties and customers are needed to drive innovation.
4. Skilled workforce: workers capable of implementing and managing these advanced technologies are essential.

Digitalisation as key

Last but not least: Digitalisation is the key pre-requisite for running these technologies. This includes digital systems to manage and control the grid, like Supervisory Control and Data Acquisition (SCADA) and Advanced Distribution Management Systems (ADMS). To provide these systems with accurate data, it’s crucial to collect information using smart meters, sensors, and other remote control and metering devices. Additionally, a reliable and secure communication network is essential to ensure smooth data flow between devices, substations and control centers.

Also see: Clear regulation required for grid digitalisation

New data: Eurelectric’s new report was complemented by a new interactive DSO map to show EU countries’ national infrastructure investment need, energy consumption and supply data. (hcn)





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Europe’s electricity grid is undergoing a massive transformation driven by ambitious decarbonisation. A new power system is emerging from the traditional transmission-heavy model where small-scale renewables, electric vehicles and heat pumps connect directly to the distribution level.

To enable this evolution, distribution system operators (DSOs) must expand, modernise and digitalise the grid. Eurelectric conducted a study to assess the digital maturity of European DSOs. Digitalisation can largely improve efficiency when building, operating and maintaining the electricity grid, but several bottlenecks hamper its full potential.

„Grid operators must be supported by clear regulation“

Today, DSOs are required to ensure a reliable power supply, accommodate grid connections and secure data flows for customer privacy and cyber security. Yet, Europe’s grid expansion rate is falling behind the demand for new customer connections.

Current infrastructure and technology systems are often decades old and not fully equipped to make use of the countless data points added to the grid system. Flexibility management is also not mature enough to cope with future needs.

Meanwhile, a higher share of renewables entails more grid planning and better forecasting due to their variable and decentralised nature. Considering renewables will constitute 42.5% of Europe’s final energy use by 2030, digital-ready infrastructure is a critical pre-requisite.

“There are many opportunities today to digitalise grid build-out, operations and maintenance, but to fully leverage them, grid operators must be supported by clear regulation to make their business go digital” – says Eurelectric’s Secretary General, Kristian Ruby.

Regulation identified as the largest external challenge

As part of the Wired for Tomorrow study, a survey was conducted with thirty European DSOs. Regulation was identified as the largest external challenge to a digitalised grid, followed by skills shortage. On the contrary, where regulation was clear and supportive of investments, such as in cybersecurity, digital maturity was highest across DSOs. 

National regulators should encourage digitalisation investments by ensuring appropriate compensation for DSOs. In parallel, the new legislation introduced under the twin green and digital transitions – from the Electricity Market Design, to the Renewable Energy Directive, the Data and AI Act – must be coherently implemented across sectors, avoiding overlaps and inconsistencies.

See also: Double investments in power distribution or lose race to net-zero

Lastly, a digitalised power system can only succeed with a skilled workforce able to operate it. The EU can help bridge the current skill gap by formalising education, developing skills initiatives and introducing certification recognised across the EU, Eurelectric demands. (hcn)





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Between 2022 and 2023, electricity demand declined by 7.5% mainly due to industries shutting down and relocating abroad during the energy crisis. Electricity markets are recording unprecedented negative prices which risk discouraging future clean investments. The EU needs a robust electrification strategy for decarbonising industry while boosting power demand and competitiveness.

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In 2023, the EU power sector cut emissions by 50% compared to 2008, marking the largest reduction ever achieved by the sector. However, Europe’s electrification rate has been stagnating at 23% for the past ten years when it should make half of EU final energy consumption by 2040. Meanwhile, China grew its rate by 7 percentage points since 2015.

Only 4% of industrial high-emission heating processes electrified

Today, a third of the energy consumed by European industries is covered by electricity, with only 4% of industrial high-emission heating processes being electrified, the report Power Barometer 2024 shows. Buildings’ electrification is also struggling with heat pumps sales decreasing by 5% in 2023. Electric vehicles, on the contrary, increased to a total of 9 million units in 2024, but remain far from the targeted 30 to 44 million units by 2030.

Also see: Double investments in power distribution or lose race to net-zero

“The missing piece between going green and staying competitive is electrifying. Industrial sectors hold a huge potential to electrify further based on available technologies” – said Eurelectric’s Secretary General Kristian Ruby, pointing to electric boilers, arc furnaces, heat pumps, induction eating, plasma torches and more for energy-intensive goods like steel and aluminium.

Need to establish a clear electrification strategy

Beyond lack of power demand, another concern for the sector is increased price volatility. As of August 2024, Europe witnessed 1,031 hours where electricity prices went below zero in at least one EU bidding zone, mostly during solar peaks, with power producers having to pay to supply electricity to the grid. At the same time, parts of Europe witnessed unusually high prices and cross-border spread. These occurrences, combined with low demand and frequent negative prices complicate the business case for additional renewable investments.

On the other hand, negative prices can incentivise more storage and flexibility to stabilise price volatility. Yet, a boost in electricity demand remains crucial to solving this issue.

Eurelectric calls on policymakers to implement the Green Deal, maintain a market-compatible investment framework and establish a clear electrification strategy for a competitive, decarbonised European industry. (hcn)





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Eurelectric’s Grids for Speed study shows that distribution grid investments should increase from an average €33 billion to €67 billion per year from 2025 to 2050, roughly 20% of what the EU spent on fossil fuel imports in 2023. Getting the grid up to speed will significantly reduce fossil fuel imports, create more than 2 million jobs, bring greater energy savings and deliver more reliable power supply while accelerating the decarbonisation of Europe’s economy.

Societal shifts are changing Europe’s energy system at a disruptive speed. By 2050, electricity will make up 60% of final energy use compared to 23% today, renewable capacity will have increased six-fold from 2020 with 70% of renewable generation and storage connecting at distribution level. Connection requests are increasing faster than grid modernisation and will continue to grow as electrification of end-use sectors progresses. These developments put a strain on the grid.

Massive grid investments and grid-friendly flexibility

To relieve the strain, annual investments into new and modernised infrastructure, including digitalisation, should reach €67 billion from 2025 to 2050, around 0.4% of EU GDP., the new Grids for Speed study shows. Forward-looking grid strategies such as anticipatory investments, optimal asset management and grid-friendly flexibility could lower this to €55 billion per year if properly implemented. Failure to invest would jeopardise 74% of prospective connections in key decarbonisation technologies such as electric vehicles (EVs), heat pumps and renewables. Investing, on the contrary, will accelerate electrification and help the EU save €309 billion every year on fossil fuel imports from 2040 to 2050.

“For a successful energy transition the EU needs massive amounts of additional grid capacity. Investment volumes for distribution system operators needs to double. Whilst this will require a significant ramp up, the cost of not investing is even higher. To succeed we need attractive returns for investors to be able to finance it, technology and fast electrification to manage the distribution fees. ”– says Eurelectric’s President and E.ON CEO Leonhard Birnbaum.

Also the supply chain has to scale up

Scaling grid investments requires a dual effort. National authorities should implement the agreed legislation – such as anticipatory investments – while adapting the regulatory regime to support the investment surge. This means eliminating investments caps, fast-tracking grid permitting and procurement procedures and de-risking investments to spur private funding while opening up of public financing through EU budget.

Also interesting: Joint initiative for a competitive decarbonized European industry

Futureproofing the grid also depends on the supply chain’s capability to scale. Even if the necessary investments are met, current shortages of copper, a talent deficit, extended manufacturing lead times and transformers’ costs can hamper infrastructure development. Such bottlenecks must be addressed through strategic planning, enhanced collaboration between policymakers and industries and new training initiatives to ensure a skilled workforce.

Eurelectric calls on policymakers both at national and regional level to secure grid investments, strengthen supply chains and unleash the societal benefits of Grids for Speed. (hcn)





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