EU to fast-track power grids projects in race to curb energy prices

By Kate ‌Abnett

BRUSSELS, Dec 10 (Reuters) - The European Union is set to slash permit wait-times and introduce top-down planning of ‍electricity-grid ‌infrastructure across Europe, as it scrambles to curb high energy prices that industry executives have warned make Europe ⁠uncompetitive with foreign rivals.

Industrial energy prices in Europe are ‌more than double those in the U.S. and China. Domestic energy-intensive manufacturers say they deter investments in the continent.

On Wednesday, the European Commission will publish legal proposals to slash deadlines for authorities across the EU to approve permits for energy projects, in ⁠a bid to speed up the modernisation of countries' power networks, according to drafts of the proposals, seen by Reuters.

For grid projects, the ​deadline would be two years, down from current wait times of ‌up to a decade. If authorities fail to respond within ⁠the new timeframes, permits would be automatically approved, the draft said.

A severe blackout in Iberia this year highlighted a lack of interconnectors between countries to allow power to flow to areas of greatest need. 

Brussels will ​also develop centralised EU plans for cross-border electricity infrastructure and trigger a “gap filling” process to request project proposals if none exist. The EU has earmarked 30 billion euros from its 2028-2034 budget for cross-border energy projects.

Years of lagging investments have resulted in ageing grids that cannot absorb Europe's growing supplies of fluctuating renewable power. ​Wind and ‍solar generators are often switched off ​to avoid overloading networks, wasting low-cost renewable electricity and boosting costs.

Wind power projects with more than 500 gigawatts of potential capacity are in queues awaiting permits to connect to Europe's grid, industry data show.

Brussels also plans to drop requirements for grid projects to undergo environmental assessments, hoping to expedite construction. Campaigners have criticised this plan.

SECURITY CONCERNS

Recent instances of Russian-linked ships damaging European energy cables and pipelines have heightened concerns among governments about security of their ⁠energy networks.

The draft proposals would require EU-funded cross-border energy projects to be assessed for physical and cybersecurity risks.

Such projects would also be screened by regional groups ​of EU governments, regulators and companies, for ownership or involvement in the projects by foreign companies, to flag potential security concerns.

Foreign investments can "increase the Union’s exposure to energy security-related risks such as disruptions or reduced reliability of cross-border flows, in particular where such foreign investments originate from third countries ‌with diverging geopolitical interests from the Union," the draft said.

A Commission spokesperson declined to comment on the drafts. Any changes to EU laws would require approval from EU countries and lawmakers.

(Reporting by Kate Abnett; Editing by David Gregorio)