Analysis suggests that European investment in its power infrastructure is disproportionately focused on long-distance transmission lines rather than the local distribution networks, or the “last mile.” Experts argue that the distribution grids are critical for connecting households and businesses to affordable energy. Evidence of this bottleneck is significant; for instance, the Danish grid operator, Energinet, paused accepting new connection requests due to the sheer volume of pending demand. A recent report examining eight European countries tallied a staggering €100 billion required for pending renewable and storage projects—amounting to nearly 375 gigawatts of renewables—that await connection to local networks.
While transmission lines receive considerable attention, the local wires connecting to substations and end-users are lagging, despite projections that 70% of new renewables must connect to them by 2030. The backlog is creating tangible economic losses. When clean power cannot reach the grid, it is curtailed, forcing the system to rely on paid-for gas generation.
In Germany, solar curtailment nearly doubled in 2024, costing an estimated €2.7 billion. Although the European Union launched a €1.2 trillion Grids Package to accelerate planning, much of the funding emphasis is placed on upgrading long-distance transmission. Conversely, the Commission’s own projections show that by 2040, distribution networks require an estimated €730 billion, significantly more than the €477 billion earmarked for transmission.
Experts conclude that the value of new clean power is directly tied to the network’s ability to connect, move, and balance electricity at the local grid level.
Topics: #last #mile #grid
