14 May Europe’s Renewable Energy Boom Stalled by Grid Bottlenecks, New Report Finds
More than 1.7 terawatts (TW) of renewable energy projects are currently stuck in grid connection queues across Europe—over three times the capacity needed to meet the EU’s 2030 climate and energy goals.
This figure comes from a new report by think tanks Institute for Energy Economics and Financial Analysis (IEEFA), E3G, and Ember, with support from Beyond Fossil Fuels. The study examined grid connection delays in 16 European countries, revealing deep-rooted issues stalling progress on renewable integration.
Infrastructure and Regulation Lags Behind
The backlog is largely due to a combination of outdated regulations, insufficient infrastructure development, and unclear responsibilities for regulators and transmission system operators (TSOs). These challenges prevent new clean energy projects from connecting to the grid in a timely manner.
One major issue is curtailment—when renewable energy generation is deliberately reduced to avoid overloading the grid. In just seven European markets, curtailment costs amounted to €7.2 billion in 2024 alone.
“Europe’s electricity grid is not modernising fast enough, and that must change,” said Vilislava Ivanova, Research Manager at E3G. “To build a resilient, fossil-free economy, governments must provide clear political direction and ensure grid operators plan ambitiously for the energy transition.”
Climate Targets at Risk
The EU has legally committed to achieving climate neutrality by 2050, with an interim goal of cutting emissions 55% by 2030 compared to 1990 levels. It also aims to source at least 42.5% of its energy from renewables by 2030, under the Renewable Energy Directive.
Despite these clear goals, the report warns that most national governments and energy regulators are not preparing adequately for the rapid growth in renewable energy or the storage and flexibility required to support it. Without urgent action, the bloc risks falling back on fossil fuels or facing growing energy insecurity.
TSOs Falling Behind
Out of 34 transmission system operators studied, only five have strategies aligned with transitioning to 100% renewables by 2035. This is despite 13 countries setting goals for decarbonising their power sectors by that date.
Alarmingly, 11 TSOs make no mention of climate targets in their publicly available plans, and 10 are still part of vertically integrated energy companies—undermining their ability to act independently and strategically.
Policy and Planning Reforms Needed
The report urges governments to:
- Give energy regulators explicit climate mandates
- Ensure strong oversight of TSOs
- Support independent system planning where needed
- Facilitate public or blended finance for grid upgrades, storage, and flexibility
It also recommends regulatory reforms to streamline and prioritise the grid connection process—covering planning, queue management, and transparency.
Some countries are already taking steps. In the UK, energy regulator Ofgem is working with the government and the newly established National Energy System Operator (NESO) on connection reforms. Simultaneously, National Grid is preparing a £35 billion investment in UK grid infrastructure between 2026 and 2031.
Germany has also announced proposed changes to its grid connection fee process to accelerate clean energy integration.
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