Hydrogen Gains Central Role in EU’s €1.2 Trillion Power Grid Strategy

• European Commission’s Grids Package includes eight “Energy Highways,” with hydrogen corridors and storage now part of priority infrastructure

• €240bn [$258bn] in hydrogen-related investment proposed, with full package calling for €1.2 trillion [$1.29 trillion] to modernise transmission and distribution networks by 2040

The European Commission unveiled its sweeping €1.2 trillion [$1.29 trillion] Grids Package today, aiming to break permitting logjams and overhaul the EU’s aging electricity grid infrastructure.

The plan, outlines €240 billion [$258 billion] in investment for hydrogen transport and storage networks—fully integrating H₂ into EU-wide energy system planning for the first time. Eight cross-border projects have been designated as “Energy Highways,” including electricity interconnections, storage hubs, and flagship hydrogen corridors linking Tunisia, Italy, Austria and Germany, as well as a Portugal-to-Germany H₂ route to receive “strong coordination” and “political support.”

The Commission hopes to address the 9-year average permitting delay afflicting renewables and storage projects by streamlining procedures and introducing digital tools. Grid bottlenecks are threatening the EU’s ability to connect new solar and wind capacity, with 14 member states still failing to meet the 15% interconnection target for 2030.

The plan highlights critical upgrades such as bridging the Pyrenees to better connect Iberia, linking Cyprus to the mainland, and completing the Baltic transmission link between Lithuania and Poland. ACER, the EU energy regulator, cited April’s Iberian blackout—affecting over 60 million—as a warning sign of obsolete infrastructure unable to meet future demand.

Eurelectric has called for a decentralised grid facility in the bloc’s next multiannual budget (2028–2034), while Climate Action Network Europe pushed for robust public consultation and environmental safeguards.

 “Through new European-level planning, we can expand and modernise grids more effectively,” said CAN Europe’s Tom Lewis. Kristian Ruby of Eurelectric added that long-duration storage like pumped hydropower remains “indispensable” as renewables scale up.

The Commission estimates €730bn [$785bn] will be needed for distribution grids and €477bn [$513bn] for transmission lines. How these investments will be financed remains undecided, though options include EU and national budgets, private capital, and cross-border cost-sharing.