An EU requirement that countries use key funds for cross-border grid network investments would lapse after eight years, according to a new compromise text of the EU’s landmark grids package proposed by member countries and seen by POLITICO.
The European Commission’s original version of the grids package — which aims to ramp up Europe’s grid network to meet the growing needs of the green transition — required that grid operators set aside 25 percent of unspent congestion revenues, which arise when electricity flows into more sparsely connected zones, to finance cross-border projects that would benefit broader European connectivity.
But now operators that leave those funds untapped for eight years will be able to use them for their original purpose of reducing capacity constraints in their domestic networks, according to the seventh revision of the proposal, which was negotiated by member countries and Cyprus, which holds the EU’s rotating presidency. Rents earmarked before 2031 would be eligible for release beginning in 2039.
The change comes amid fierce pushback by member countries, particularly Sweden, which depend heavily on congestion income to smooth out network bottlenecks.
