According to a new report published by the Agency for the Cooperation of Energy Regulators (ACER), European countries have experienced an average investment increase of 155% in electricity network infrastructure compared to 2019. The report shows that 22 out of 24 countries surveyed last year increased their annual investments in networks compared to 2019.
Investment Growth in Various Countries
Countries like Germany, Greece, and Sweden have faced significant increases in their investments, reaching 505%, 327%, and 310%, respectively. Only Luxembourg and Norway are projected to experience a decrease in investment by 2025 compared to 2019 levels. ACER predicts that 15 out of 18 countries (83%) will estimate higher investments in 2030 compared to 2025, averaging 134%.
Read more: Steamship Mutual Returns $39 Million to Its Members
Future Challenges and Needs
The Netherlands is expected to see a significant increase in investment, reaching nearly five times its 2025 level by 2030. In contrast, Estonia, Latvia, and Cyprus are the only EU member states that have predicted a decrease in investment. ACER also notes that these estimates should be evaluated with caution, as electricity transmission projects frequently face delays and their timelines have changed.
Despite a decline in industrial activities and high energy costs, electricity demand in Europe is unexpectedly rising. This increase in demand is particularly driven by the growth of renewable energy production, which puts significant pressure on Europe's electricity networks. To manage the increasing production of solar and wind energy, substantial investments are needed.
The European Commission has estimated that to meet network needs by 2050, investments between $2.25 trillion (about €2 trillion) and $2.6 trillion (about €2.3 trillion) will be required. Additionally, the Commission states that by the end of this decade, the EU will need $656 billion (about €584 billion) in investments, as 40% of its distribution networks are over 40 years old and cross-border transmission capacity will double by 2030.
Read more: Technical Meeting of OPEC, IEA, and IEF to Review Marine Energy Flows · Major Oil Companies Focus on Reducing Debt
