Investments of trillions of dollars are necessary to accommodate the surge in green energy production, increasing electricity demands.
The EU requires substantial investments, estimated in the trillions of dollars, to support the growing integration of renewable energy, meet rising electricity demands, and prevent future outages. The grid’s outdated infrastructure is also at risk from cyber threats, necessitating enhanced digital security measures as part of the overhaul. Kristina Ruby, Secretary General at Eurelectric, highlighted the urgency: “The blackout was a wake-up call. It showed that the need to modernise and re-inforce Europe’s electricity grid is urgent and unavoidable.”
Global investment in renewable energy has nearly doubled since 2010, but grid investment has remained stagnant at around $300 billion annually. The International Energy Agency indicates this must double to over $600 billion per year by 2030 to fund necessary upgrades. In 2024, European companies invested €80 billion ($90.5 billion) in grids, a notable increase, but analysts at Bruegel suggest annual investments may need to reach €100 billion to meet long-term goals. The European Commission projects a total investment of $2 trillion to $2.3 trillion by 2050 to ensure a robust grid.
Spain, where renewable energy accounted for a record 56% of the power mix in 2024, up from 47% across the EU, faces unique challenges. The country plans to phase out coal and nuclear power, including shutting down all seven nuclear reactors by 2035. Portugal, reliant on just two backup plants, also faces vulnerabilities due to limited interconnections with other grids, which could provide emergency support. The European Commission aims to boost interconnection capacity to 15% by 2030, enabling each EU member to import at least 15% of its power needs from neighboring countries.
The rapid expansion of wind and solar projects contrasts with the slower, complex process of grid upgrades. Renewable energy sources produce direct current, requiring conversion to alternating current for grid use. Backup power sources are essential to maintain grid stability and prevent blackouts when renewable generation fluctuates. The recent outage in Spain, currently under investigation by national and EU authorities, highlights the fragility of the current system and the need for comprehensive improvements to support clean energy goals and ensure energy security.
