Prysmian Energy Transition 2022

9 | Prysmian Group | Energy transition - White paper 2022 Backbone of a net-zero energy system The power grid will be the backbone of an energy system dominated by renewables, especially by wind. A net-zero energy system, largely running on renewable electricity, can remain reliable and resilient, but Europe’s electricity grid needs to be expanded and reinforced – onshore and offshore – as well as optimised. Europe currently invests €40bn a year on power grids. Annual investments across all voltage levels need to double over the next thirty years to €80bn a year, according to IRENA. Permitting and approval of transmission infrastructure projects, that are regularly delayed today, must be streamlined, applying among others a sea-basin approach to offshore wind grid planning. Towards a fossil-free energy infrastructure The shift towards a fossil-free energy infrastructure in Europe has already started. Eleven EU countries have recently signed a declaration calling on the EU to stop funding fossil fuels under its trans-European energy infrastructure regulation (TEN-E), which is currently under revision. The signatories – Austria, Belgium, Germany, Denmark, Estonia, Ireland, Luxembourg, Latvia, the Netherlands, Spain and Sweden – argue that the revision of the TEN-E regulation should exclude funding fossil fuel infrastructure that would lock Europe into carbon-emitting energy sources, which means that just power grids, not gas pipelines, would qualify for funding. Despite this declaration, EU energy ministers agreed to prolong EU support for some selected cross-border natural gas projects, but the revision of the TEN-E regulation updates the categories of infrastructure that are “eligible for support”, adding a “new focus” on “offshore electricity grids, hydrogen infrastructure and smart grids”. Ministers also said that until 2028, support could go to converting gas pipelines to carry hydrogen, and those projects could continue to carry natural gas blended with hydrogen until 2030. They must now negotiate the new rules with the European Parliament, who could improve the text with more emphasis on decarbonisation. A well-designed network can create jobs and income in rural areas, that are rich in resources. Communities that generate their own renewable energy may want to sell surplus power to areas where there is a high energy demand.

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