According to the "Electricity Barometer 2026" report of the European electricity industry association Eurelectric, while the network investments of distribution system operators were at the level of 24 billion euros in 2021, this amount increased to 36 billion euros in 2024.
It is predicted that distribution network investments will reach 48 billion euros in 2027, with an average annual increase of 12.5 percent. Thus, the annual investment volume is expected to double in the 6-year period.
It is stated that distribution system operators are directing record amounts of capital to networks for the widespread use of electrification and the integration of renewable energy sources into the system.
On the other hand, delays in permit processes, slow recovery of costs, regulatory uncertainty, bottlenecks in the supply chain and lack of qualified workforce pose risks in the timely implementation of investment plans.
Eurelectric points out that these factors may delay the commissioning of the infrastructure Europe needs for electrification.
The role of the consumer in distribution networks is changing
The role of distribution networks in energy transformation is not limited to connecting renewable energy projects to the system.
With the widespread use of rooftop solar energy systems, batteries and smart meters, the number of users who both consume and produce electricity is increasing rapidly.
The number of such users connected to distribution system operators in Europe quadrupled on average in the period 2022-2025.
In the same period, industrial consumers' connection demands for distribution networks also increased significantly. While it is stated that industrial expansion, especially in Central and Eastern Europe and the Iberian Peninsula, increases the need for distribution networks, data center connection demands in some countries are also evaluated in this context.
Connection queues grow for renewable and storage projects
Another factor that increased the need for network investment was the connection queues of renewable energy and storage projects.
It is stated that the capacity of variable renewable energy projects awaiting grid connection across the EU is increasing rapidly and the project pool is exceeding the current grid capacity.
The capacity of variable renewable energy projects awaiting connection in Italy reached 348 gigawatts. This capacity corresponds to approximately six times the existing variable renewable energy installed capacity in the country.
It is stated that the reporting method of Terna, the transmission system operator in Italy, which records all connection requests regardless of the probability of the projects being realized, is also effective.
While high connection demand was also seen in battery storage projects, the storage capacity in the connection queue in Germany reached 480 gigawatts. In Italy, there is a storage connection demand of 277 gigawatts at the transmission system level.
However, it is noted that only a small portion of the projects in the connection queue are expected to be finally put into operation.
Grid-scale battery storage capacity in the EU will more than double in 2025, reaching 11.2 gigawatts by the beginning of 2026. It is stated that if all of the announced projects are implemented, the storage project pool may exceed 80 gigawatts and 230 gigawatt hours.
While Germany stands out in the EU with its operational battery capacity of 2.9 gigawatts, more than 10 gigawatts of new capacity is expected to be commissioned in the country in the near future.
Renewable capacity increase increases grid need
In order for the EU to achieve its 2030 targets, more than 450 gigawatts of new renewable energy capacity is needed in addition to the existing capacity.
In the January-August period of 2026, solar electricity production increased by 36.4 terawatt hours, onshore wind production by 17.4 terawatt hours and offshore wind production by 6.1 terawatt hours compared to the same period last year. Thus, the total increase in wind production reached 23.5 terawatt hours.
While the total share of wind and solar in EU electricity production will reach 30 percent for the first time in 2025, the share of fossil resources decreased below 30 percent.
While the emission intensity of the electricity sector dropped to a record low level of 182 grams of carbon dioxide/kilowatt hour, the total emissions of the sector were 64 percent below the 2008 level.
Electricity production from wind and solar increased from 470 terawatt hours in 2019 to 824 terawatt hours in 2025. In July 2026, the share of variable renewable sources in EU electricity production approached 40 percent.
