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EU targets 8 power grid bottlenecks to cut prices, boost security
Published by Global Banking & Finance Review®
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on September 10, 2025
2 min readLast updated: January 22, 2026
The EU plans to address eight power grid bottlenecks to reduce energy prices and improve security, focusing on regions like Iberia and the Balkans.
By Julia Payne and Kate Abnett
BRUSSELS/STRASBOURG (Reuters) -The European Union will prioritise fixing eight power grid bottlenecks, the Commission President said on Wednesday, in an effort to lower the bloc's uncompetitive energy prices and improve energy security.
"I am presenting today a new initiative called Energy Highways. We have identified eight critical bottlenecks in our energy infrastructure. From the Oresund Strait to the Sicilian Canal," European Commission President Ursula von der Leyen said in her State of the Union address in Strasbourg.
"We will now work to remove these bottlenecks one by one."
Electrification is essential to the bloc's climate ambitions but there remain stark price and connection gaps across the 27 member states.
Earlier this year, Spain and Portugal suffered country-wide blackouts while southeastern Europe, especially Greece, saw power prices skyrocket above the EU average.
"If our energy systems are not better connected, then we will not decrease the (energy) prices as much as we should," EU energy commissioner Dan Jorgensen told reporters in Strasbourg.
A key project will be to increase electricity interconnections between the Iberian peninsula and France. Spain and Portugal asked the Commission to intervene in May.
"We saw the blackout, we cannot conclude yet exactly why that happened, but it's clear to every expert that the more connected you are, the better connected you are, the less the risk of blackouts like that," Jorgensen said.
"It will be a main priority for us to make it happen to make it happen. And I'm confident that France will also see the value."
Here is the list of the priority bottlenecks:
1. Better integrate Iberia with power interconnectors across the Pyrenees to France
2. Connect Cyprus with continental Europe to end its electricity isolation
3. Strengthen power links in the Baltic states
4. Improve energy supplies in the Balkan region and eastern neighbouring states
5. Turn the North Sea into an offshore interconnector hub
6. South hydrogen corridor connecting the North Sea to the Mediterranean
7. Southwest hydrogen corridor from Portugal to Germany
8. Improve price stability and energy security in southeastern Europe
(Reporting by Julia PayneEditing by Ros Russell)
The EU has launched a new initiative called Energy Highways to address eight critical bottlenecks in its energy infrastructure.
The identified bottlenecks include better integration of Iberia with France, connecting Cyprus to continental Europe, and strengthening power links in the Baltic states.
Electrification is essential for the EU's climate ambitions, but there are significant price and connection gaps across the member states.
Spain and Portugal experienced country-wide blackouts, and southeastern Europe, particularly Greece, saw power prices rise above the EU average.
The EU plans to work on removing these bottlenecks one by one, with a focus on improving interconnections and energy security.
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