Firstly, the plan’s ambitions run into a physical problem: the grid. None of this electrification happens without a power grid that can carry the extra load, since every heat pump, electric vehicle and electrified factory process, plus new demand from data centres and hydrogen production, has to connect to the system somewhere. ENTSO-E, the association representing Europe’s grid operators, has welcomed the plan for recognising that electrification and grid development need to move together. But its own view of what’s needed goes well beyond pricing: enough investment in grid infrastructure, backed by financing and faster permitting; more flexibility in how the grid is used; and better management of the queues that currently leave new power projects waiting years just to connect. In other words, getting the price of electricity right doesn’t help much if the grid itself doesn’t have the capacity, or the connection process, to keep up.
