Brussels, 9 September 2024 – Former European Central Bank (ECB)’s President, Mario Draghi published his awaited report: “The future of European competitiveness”. The report, tasked by the European Commission’s President Ursula von der Leyen offers recommendations to tackle the economic challenges and low growth rate of the region.
The findings of the report will contribute to the forming of the new Commissioners’ priorities, and the future Commission’s work on a new plan for Europe’s sustainable prosperity and competitiveness. It will be particularly relevant for the new Clean Industrial Deal for competitive industries and quality jobs, to be presented in the first 100 days of the new Commission’s mandate, as its flagship project for the next five years.
The report includes a whole chapter dedicated to energy, and recommendation supporting two core objectives: lowering the cost of energy for consumers and industry, and accelerating decarbonisation in a cost-efficient way. The report recalls some numbers to represent the scale of the challenge ahead, mentioning that up to 310 TWh of renewable generation could be curtailed due to grid limitations by 2040, ten times more than in 2022. The distribution level is acknowledged as in need of EUR 375-425 billion of investments by 2030, necessary to overcome the risks posed by the grid aging and pressure of new capacity needs.
Proposals with implications for DSOs include:
- Simplifying and streamlining permitting and administrative processes to accelerate renewables, flexibility infrastructures and grid development.
- Fostering network upgrades and greater coordination in grid planning
- Promoting investments in grids to address the electrification of the economy and avoid bottlenecks.
- Encourage self-generation by energy-intensive users with the transposition and implementation of existing legislation lift barriers to self-consumption (Renewable Energy Directive, EMD regulation).
- Reinforce system integration, storage and demand flexibility so to keep total system costs in check with a competitive uptake of renewables.