The European Union is intensifying its focus on upgrading its ageing electricity grid, recognizing it as a critical element in the shift away from fossil fuels and the pursuit of lower energy costs. However, recent geopolitical developments, particularly Russia’s invasion of Ukraine and the sabotage of undersea infrastructure, have exposed a growing vulnerability. As a result, EU energy security is now taking center stage in policy discussions, with the dual goals of boosting electrification and defending critical infrastructure.
Electrification remains a central pillar of the EU’s strategy to cut reliance on fossil fuels, particularly oil and gas from Russia. But as EU officials recently warned at a policy event in Brussels, energy infrastructure is increasingly viewed as a military target. The destruction in Ukraine and the sabotage of Baltic cables have underscored how exposed the EU’s own grid may be. Asta Sihvonen-Punkka, vice-president of ENTSO-E, highlighted that threats to the grid are no longer distant—they’re approaching Europe’s doorstep. She emphasized the urgent need to bolster the resilience of energy systems, pointing to long supply chain lead times as a particular concern. For example, ordering new cables to replace damaged infrastructure can take up to seven years, leaving countries exposed in the interim.
In response, the European Commission has unveiled the “Preparedness Union Strategy,” which proposes incorporating lessons from the Ukraine conflict into a broader EU energy security framework. This includes a stockpiling strategy for essential components and materials needed to maintain and repair energy infrastructure. Standardizing grid components across member states is also being considered, as it could make the energy system more agile and cost-effective. However, officials caution that building in more redundancy—like spare capacity or backup systems—will require significant investment, similar in scale to spending on national defense.
Simultaneously, the EU is grappling with a deeply flawed electricity market system that has contributed to dramatic price spikes and underinvestment in cross-border transmission infrastructure. Ditte Juul-Jorgensen, the EU’s director-general for energy, acknowledged that investment in grid infrastructure has been slow and insufficient. The current ten-year planning model fails to account for the full scope of infrastructure and cross-border needs. One example of this was seen last year when electricity prices hit €1,000 per megawatt hour in Hungary, while neighboring Austria paid only €61—highlighting major inefficiencies in what is supposed to be a unified market.
To address these disparities, the EU plans to roll out a harmonized tariff system as part of its “Affordable Energy Action Plan.” Eurostat data show network charges vary wildly across member states, which adds to consumer confusion and market instability. Looking ahead, the Commission is preparing a €584 billion investment plan through the end of the decade to modernize Europe’s electricity grid, including a “grids package” to be unveiled early next year. This will support the goal of increasing electricity’s share in total energy consumption from 21.3% to 32% by 2030.
Ultimately, these efforts reflect the growing realization that EU energy security is no longer just about affordability or sustainability—it’s about strategic resilience. With the European Court of Auditors set to release a report on the state of the grid, the conversation around EU energy security is expected to intensify further, pushing for action that is long overdue.