ENTSO-E’s annual assessment of Europe’s security of electricity supply for the ten years ahead highlights substantial risks and calls for proactive measures to incentivise necessary investments. The assessment provides an integrated pan-European perspective for the years 2026, 2028, 2030, which shows how several European countries face challenges in maintaining the reliability of their power system.
Identified challenges include:
- Significant volumes of fossil fuel capacity are expected to be decommissioned in the mid-term.
- Notable investments and lifetime extensions are, however, needed in the longer term to meet an increasing demand for electricity.
- Without further action, adequacy risks appear in several European countries and margins are tight.
To address these challenges, ENTSO-E calls for urgent action as follows:
- The implementation of long-term market mechanisms, which provide efficient price signals for investors in new flexible resources;
- The acceleration of the establishment and approval process of capacity mechanisms;
- The fast-tracking of both flexibility solutions and infrastructure, including cross-border electricity transmission networks to direct renewable energy sources where they are most needed, as well as storage and other sources of flexibility.
ENTSO-E recommends a timely implementation of these measures in order to safeguard the security of supply and to increase system resilience.
By implementing these measures, Europe can not only provide an adequate level of security for our power system, but also strengthen the competitiveness of the European economy. These are key policy objectives for the EU alongside its goal of achieving carbon neutrality by 2050.
Read the full report here
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