Europe’s grids are at the forefront of its search for industrial competitiveness, decarbonisation, and energy security. The geopolitical earthquakes of the last years have repeatedly underscored the strategic imperative of electrification. Europe’s dependence on fossil fuels and their inherent volatility continues to constrain its sovereignty and deepen economic strain. 

But the pendulum is swinging. Since 2025, renewables are now Europe’s predominant source of electricity. Traditional industries are electrifying at pace, while new sectors are being built on electric power. This great wave of energetic change cannot be funnelled through our existing grids. The challenge confronting Europe now is: can its grids deliver the clean, reliable power required to decarbonise, and do so quickly enough? 

As new industries arrive and industrial electricity demand grows, the grid has emerged as a critical constraint in our energy supply: the connection between clean power generation and the factory gate. Grid constraints are forcing projects to wait for years, cutting off cheap, renewable power before it even reaches the consumer. This is why Europe’s industrial-electricity users are no longer just passive customers; they have become active stakeholders in grid planning, financing, and innovation.

Recognising this shift, the European Commission has responded with the European Grids Package, a suite of measures designed to accelerate grid deployment, strengthen cross‑border coordination, and make it easier to finance grid projects. At its heart, the Package aims to complete the internal electricity market by making it faster, cheaper and more predictable to build and connect to the grid. New rules seek to speed up permitting, streamline cost‑allocation mechanisms and centralise grid planning at EU level. For the first time, Europe’s grid policy is being explicitly framed as a driver of industrial competitiveness, rather than as a technical footnote.

For the Green Industrial Grids Association (GIGA), which represents medium and large electricity‑intensive industries and grid technology providers committed to Europe’s decarbonisation, the European Grids Package is a positive and necessary step forward. In particular, GIGA welcomes the incentivisation of non‑wire solutions and Grid Enhancing Technologies (GETs) to make better use of the existing grid, faster permitting procedures, and the recommendation to move away from first‑come, first‑served connection models towards a readiness‑based approach. In addition to the measures already proposed in the Package, GIGA recommends better integration of industrial electricity consumers into load forecasts through secure and anonymised data, concrete EU proposals to bridge grid financing gaps, and the creation of a clear framework for flexible connection agreements.

However, the Package is no panacea. Even with stronger rules on permits, governance and coordination, the EU still faces significant challenges. Differing national priorities, local acceptance issues and the complexity of cross-border infrastructure can continue to slow cross-border projects. Permitting timelines remain long, and the workforce needed to design, build, and operate modern grids is in short supply.

From the perspective of the electricity supply chain, these challenges also present opportunities. The grid is no longer a set‑and‑forget piece of infrastructure; it is becoming a dynamic, data‑rich ecosystem. Manufacturers of cables, transformers, switchgear and power electronics will see growing demand for more resilient, flexible and digitally enabled equipment. Digital‑twin platforms, real‑time monitoring systems and advanced control algorithms are increasingly part of everyday grid operations, rather than niche pilot projects. Grid supply‑chain companies are evolving from traditional equipment providers into technology and service partners for a smarter, more integrated grid.

The Grids Package should therefore be read as a growth mandate for the supply chain. As Europe accelerates grid investments, supply‑chain actors will be asked to deliver not only hardware, but also integrated solutions that support digitalisation, cybersecurity and interoperability. For companies that can combine engineering excellence with data‑centric innovation, the Commission’s push to modernise Europe’s grids represents a long‑term business transformation, not just a temporary spike in orders.

The European Grids Package marks a turning point. Europe is finally treating its grid as the backbone of the new energy transformation and industrial competitiveness. For large electricity users, this is a signal that the power system can no longer be taken for granted, but must be actively engaged with. For the grid supply chain, it is a clear invitation to scale up, innovate, and help shape the electricity system of tomorrow, where data, digitalisation and cross‑border coordination are as important as cables and transformers.

About the author

Matt Ersin
Chair of the Green Industrial Grids Association (GIGA) and Senior Director at Fastned