Grid modernisation cannot wait: three essential systemic reforms
1. Smart grids and flexibility with consumer safeguards
Europe has a grid that is not yet ready for the green and digital transitions. Climate objectives to electrify heating, transport and industry and introduce a variety of renewables to the system are putting Europe’s electricity grids under strain. At the same time, increasingly frequent extreme weather events can physically damage infrastructure and disrupt electricity demand for cooling technologies.
A future-ready electricity grid infrastructure needs to be: digitally enabled with real-time monitoring and smart metering; flexible through integrating storage, demand response and distributed generation and above all resilient enough to withstand and recover from external shocks. This means:
- • Investing in digital grid infrastructure (smart meters, automated load management) with privacy by design.
- • Expanding access to demand-side response and energy communities, ensuring interoperability and affordability.
- • Incentivising local flexibility markets that allow households and SMEs to support grid stability
2. Prioritise interconnection and resilience
Interconnection means access to energy capacity and affordable, cleaner power from neighbouring markets. But currently, poor interconnection is undermining resilience. For example, the Iberian Peninsula remains one of the least interconnected regions in the EU, falling well below the 15% interconnection target.
Development has been slow on key projects such as the Bay of Biscay interconnector and without swift progress, systemic risk and co-ordinated responses to problems will be limited. It’s time to:
- • Mandate the accelerated delivery of key cross-border interconnectors, especially for under-connected regions like the Iberian Peninsula.
3. Consumer rights and crisis preparedness
When major grid failures happen, the consequences for consumers include lost services, economic harm and a dearth of information, accountability and redress.
In the Iberian case, consumers continued paying the price during the recovery period as regulators and providers tried to steady the grid through cross-border energy restrictions and the curtailment of cheap solar power.
Consumers on variable-rate contracts saw their bills surge as costly emergency balancing mechanisms were used to maintain grid stability. Those on fixed-rate contracts encountered steep price increases when renewing agreements, with some providers introducing clauses to permit price rises during “extraordinary events”.
These all tell a story of consumers being sidelined in infrastructure decisions and processes. Resilience is not only about infrastructure, but also about the processes that recognise energy consumers as active participants, empowered through transparency, safeguarded by rights and strengthened by digital tools. This can change through:
- • Introducing minimum EU-wide standards for blackout communication, redress, and continuity of service.
- • Requiring national crisis plans that include protocols for vulnerable groups.
- • Ensuring consumer representation in infrastructure planning and national energy dialogues.
The Grid is a consumer issue
The blackout showed that grids are no longer just technical infrastructure; they are critical enablers of Europe’s competitiveness, decarbonisation and an affordable, essential service. April’s blackout sounded an alarm that Europe’s energy grids must be modernised and consumer interests prioritised.
The Grids Package, out today is a crucial opportunity to address the shortcomings in grid planning, coordination, and consumer protection exposed by the large-scale disruption of the Iberian blackout.
The Iberian blackout also exposed a gap in execution. EU initiatives such as TEN-E and REPowerEU provide a strategic vision for modernising electricity infrastructure, but on-the-ground progress remains patchy and slow. It’s now time to speed up implementation to deliver outcomes for consumers.
Without decisive action, the risks of disruption, escalating costs and deepening inequality will intensify. Strategic investment in smart, flexible, and interconnected networks is critical to safeguard system reliability, maintain affordability and uphold public trust.