Turning renewable leadership into lasting European competitiveness

Europe’s rapid expansion of renewable energy is a strategic strength for the European Union. Wind and solar are becoming the backbone of a competitive, secure, and decarbonised energy system. Through initiatives such as the European Green Deal, the Fit for 55 Package, and REPowerEU, the EU has chosen to build its prosperity on abundant, domestically produced clean electricity—reducing dependence on imported fossil fuels, shielding consumers from price volatility, and creating the conditions for structurally lower electricity costs.

Deployment remains essential — and must continue at pace. But today, the real challenge is doing two things at once: scaling renewables further while ensuring the system can fully integrate and use this clean electricity. Rising curtailment highlights structural constraints in grids, system flexibility, and market design. If not addressed, these constraints risk undermining investor confidence, slowing electrification, and weakening Europe’s competitiveness.

Electricity networks must therefore become a central pillar of the energy transition.The EU’s Grid Action Plan and the forthcoming European Grids Package provide the right framework, but their success will depend on rapid implementation and strong political commitment.

Three priorities should guide European action:

1. First, accelerate investment in transmission and distribution networks through faster permitting, anticipatory investments, and stronger cross-border planning.
2. Second, scale up system flexibility by expanding storage, demand response, flexible industrial consumption, and digital system management.
3. Third, fully leverage the European internal energy market by strengthening interconnections and market integration to reduce costs and maximise the value of renewable electricity.

Europe’s leadership in clean power represents a major economic opportunity. Abundant renewable electricity can support industrial growth, attract investment, and strengthen Europe’s position in global clean technology value chains.

The objective is clear: transform Europe’s renewable leadership into a lasting competitive advantage. By strengthening grids, scaling flexibility, and deepening market integration, Europe can ensure that every unit of clean electricity contributes to lower costs, greater resilience, and a stronger European economy.