Addressing climate change means moving away from fossil fuels and embracing renewable energy. To support this shift, the national power grids of European countries must be better connected. At present, these connections are fragmented, limited in capacity and cannot keep pace with the growing demand for renewable energy
By contrast, the European ‘supergrid’, an ‘interconnected, continental-scale electricity transmission system’ that could one day link Europe and the countries and regions around its borders [1], will maximise the sharing of renewable resources across the continent. The result? Greater energy efficiency and security, and lower energy costs for consumers.
Here, Stephen Magennis, Global Head of E&U at Expleo, outlines what the supergrid is, why it’s being developed, the challenges and opportunities presented by it, and how it differs from the smart grid.
What is the European supergrid?
Stephen describes the supergrid as “an interconnected network of high-voltage transmission lines that will allow a large-scale exchange of electricity, particularly renewable energy, across countries.” For example, energy can be generated via solar panels in Spain and consumed immediately in Norway. Wind blowing off the coast of Sweden can be used to power turbines in Portugal.
Batteries can store surplus energy and feed it back into the supergrid for use when needed.
The supergrid concept differs from national networks in terms of power distribution. As countries transmit power at different frequencies, trans-border connections carry power via High Voltage Direct Current (HVDC) technology. HVDC technology is more efficient than the usual Alternating Current (AC) system and allows regional networks to be connected through cables, including those running underground and beneath the sea.
Why the supergrid is being developed – and how developed is it?
In Stephen’s words, the supergrid’s development is “driven by a shared need for greater energy security and renewables integration on a large scale.” Though Europe’s national energy grids are already interconnected – France’s nuclear, Norway’s hydropower and the UK’s wind energy are shared across the continent – this is limited in capacity and supports regional energy trading, not large-scale energy distribution. The Council of the EU has set targets to increase interconnected capacity to a 15% minimum by 2030 [2].
To realise the supergrid, European Union (EU) member states must collaborate closely. Currently, European groups are working voluntarily on different projects. Smaller projects, most of which are at the planning stage, form part of more intense grid connections, including Scotland’s Caithness-Moray Link. This project was completed in 2024 at a cost of €1.1 billion (£920 million). It sends 1.2GW of power 160km south from the northern tip to Moray to speculative Xlinks comprising four 3,800km HVDC subsea cables that connect the Guelmim-Oued Noun region of Morocco to the UK [3].
Establishing the supergrid: LitPol Link
Created in 2016, the LitPol Link, is a HVDC converter station that connects the electricity grids of Lithuania and Poland. With a capacity of 500 MW and goal for 1,000 MW, it represents a crucial connection between the Baltic states and the rest of Europe [4].
The converter improves energy security in the Baltic through increased energy resource-sharing and improved market integration. Notably, excess Lithuanian wind energy has benefitted Poland.
While exact figures about the amount of Lithuanian energy Poland benefitted from are not available, Lithuania generated 70% more green energy in the first half of 2024 (2.31 GWh) compared to the same period in 2023 (1.36 GWh)[5]. LitPol Link costs, including construction, technology implementation and regulatory compliance, amounted to €340 million (£284 million) [6].
Establishing the supergrid: North Sea Wind Power Hub
This large speculative project with a 2050 completion timeline intends to harness up to 100GWs of wind energy capacity. It promises to make a sizable dent in Europe’s renewable energy targets [7]. The completed network will encompass one or more islands in Dogger Bank, a maritime region of shallow waters and high winds. The project involves several countries, including The Netherlands, Germany, Denmark, Belgium and France. There are plans to convert excess energy into hydrogen with electrolysis, allowing large-scale storage and transport solutions.
With the EU looking to increase investment in the supergrid, the aim is to reduce net greenhouse gas emissions by 90% by 2040 against 1990 levels and reach climate neutrality by 2050 [8]. However, despite ambitious plans and ongoing projects, no completion date or cost for the supergrid is agreed, and many projects are pending. Underinvestment and regulatory hurdles continue to hold up progress.
As Stephen says, the supergrid is “a complex undertaking, albeit one with immense potential.” As we get closer to the 2040 and 2050 targets, designing and building these higher capacity interconnections between Europe’s electricity networks must happen to create a lower-carbon economy and allow for better renewable energy integration.
What’s the difference between the supergrid and the smart grid?
While the European supergrid and smart grids contain some of the same infrastructure, it is important not to confuse them. Both support the shift to renewables. However, unlike the supergrid, the goal of smart grids is to boost the efficiency and reliability of energy distribution networks in individual countries.
Smart grids comprise components such as smart meters, sensors and automated systems which increase efficiency, bring more renewable energy on-stream, and give consumers more opportunities to save on energy and costs. To find out more about how the smart provides opportunities for innovation and efficiency in energy distribution, read our new report, Grid 2.0: Advancing energy’s digital frontier.
Despite differences between the supergrid and smart grids, the European-wide concept can still benefit from smart grid innovations. Advanced sensors, communication tech, and data analytics enable real-time monitoring and control of electricity flow, improving grid efficiency and reliability. Smart grids can also balance supply and demand and respond to price signals. Smart grid technology also gives the supergrid the ability to quickly detect and isolate faults so engineers can promptly fix them and analyse data to predict and fix failures before they occur.
The challenges and opportunities presented by the supergrid
The opportunities
The supergrid could provide benefits to the environment and energy consumers across Europe. One study for the European Commission estimates that an ‘adequately interconnected’ grid could save EUR 12-40 billion annually by 2030 [9]. Meanwhile, University College Dublin research has found that a supergrid could lead to a 32% reduction in energy costs across the continent [10].
In addition to creating jobs through building and maintaining the supergrid, its development will help reduce reliance on oil and gas imports to Europe. The supergrid will also make it possible to balance energy from the north to the south, strengthening renewable energy provision.
The challenges
The key challenges are:
- Infrastructure costs
Costs of building the supergrid sit around €990 billion (£824 billon), with a payback period of 7.8 years [11]. Investment must be found for enabling technologies such as cables, cable monitoring and sensing technology and HVDC convertors. Superconductive materials are a promising technological advancement for the supergrid, allowing for efficient transmission of electricity over long distances but with minimal energy loss. By heating up these materials, the grid can become more reliable, cope with greater capacity and bring even more renewable energy online [12]. If the payback period is correct, the supergrid represents a significant opportunity for commercial and institutional investors. Benefiting from this investment will require continent-level collaboration, an investment lead and, possibly, the creation of new, complex financial instruments such as contributions from EU funds. - Transnational harmonisation
National electricity networks are highly regulated. A supergrid needs the coordination of policies and regulations by all countries so energy can be exchanged across borders. For example, while France has attempted to create a simple, predictable regulatory framework for the rollout of low carbon technologies with two acts passed in 2023 [13], Germany has a long and slow bureaucratic process when it comes to permitting that has already delayed the rollout of wind farms in the country [14]. Meanwhile, technology integration will prove challenging when it comes to linking national grids together. Countries differ in frameworks governing electricity transmission and HVDC integration which will require convertors to share electricity across borders.
Expleo’s expertise and innovative solutions can support the development and implementation of the supergrid. Our technological know-how already supports companies in the energy transition and to realise the benefits of smart grids. To learn more, read our new report, Grid 2.0: Advancing energy’s digital frontier.
To find out how Expleo can support smart data-driven energy and utilities solutions, contact us today.
References:
- Wind Energy Ireland. (2017). Building the European Supergrid. https://windenergyireland.com/images/files/building-the-european-supergrid-final-updated-design.pdf
- European Parliament. (n.d.). Communication on achieving a 15% electricity interconnection target. https://www.europarl.europa.eu/legislative-train/package-full-integration-of-the-eu-energy-market/file-communication-on-achieving-a-15-electricity-interconnection-target
- Wind Energy Ireland. (2017). Building the European Supergrid. https://windenergyireland.com/images/files/building-the-european-supergrid-final-updated-design.pdf
- Wikipedia contributors. (2023, November 22). LitPol Link. In Wikipedia, The Free Encyclopedia. Retrieved 15:56, September 25, 2024, from https://en.wikipedia.org/wiki/LitPol_Link
- CEEnergy News, (2024, August 10) Lithuania nears 3 GW renewable energy milestone as solar and wind output soars. https://ceenergynews.com/renewables/lithuania-nears-3-gw-renewable-energy-milestone-as-solar-and-wind-output-soars/
- Wikipedia contributors. (2023, November 22). LitPol Link. In Wikipedia, The Free Encyclopedia. Retrieved 15:56, September 25, 2024, from https://en.wikipedia.org/wiki/LitPol_Link
- North Sea Wind Power Hub Consortium. (n.d.). North Sea Wind Power Hub. https://northseawindpowerhub.eu/
- European Commission. (2019). A Clean Planet for all: A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy. https://climate.ec.europa.eu/eu-action/climate-strategies-targets/2050-long-term-strategy_en
- Eyes on Europe, (2022, January 27) The European Supergrid: A Solution to the EU’s Energy Problem. https://www.eyes-on-europe.eu/the-european-super-grid-a-solution-to-the-eus-energy-problems/
- Pan-European ‘supergrid’ could cut 32% from energy costs, says new UCD study. (2024, February 14). University College Dublin. https://www.ucd.ie/newsandopinion/news/2022/february/10/pan-europeansupergridcouldcut32fromenergycostssaysnewucdstudy/
- McKenna, P. (2023, February 18). A supergrid for Europe is the last piece in jigsaw to decarbonise Europe. The Irish Times. https://www.irishtimes.com/environment/climate-crisis/2023/02/18/a-supergrid-for-europe-is-the-last-piece-in-jigsaw-to-decarbonise-europe/#:~:text=By%20collectively%20harnessing%20innovative%20technologies,payback%20period%20of%207.8%20years
- McKenna, P. (2023, February 18). A supergrid for Europe is the last piece in jigsaw to decarbonise Europe. The Irish Times. https://www.irishtimes.com/environment/climate-crisis/2023/02/18/a-supergrid-for-europe-is-the-last-piece-in-jigsaw-to-decarbonise-europe/#:~:text=By%20collectively%20harnessing%20innovative%20technologies,payback%20period%20of%207.8%20years
- Ministère de l’Économie, des Finances et de la Souveraineté industrielle et numérique. (2023). Deep decarbonization pathways in France. https://www.economie.gouv.fr/files/files/2023/DP_Paris_deep_decarbonisation_EN.pdf
- Gerbaulet, C in Clean Energy Wire. (2023, July 18). Short-term wind power targets in Germany at risk due to implementation delays, analysis finds. https://www.cleanenergywire.org/news/short-term-wind-power-targets-germany-risk-due-implementation-delays-analysis
Grid 2.0: Advancing energy’s digital frontier
How the smart grid provides opportunities for innovation and efficiency in energy distribution
