Better coordination for a more efficient European energy system

Three steps should be taken to improve the efficiency of the European Union’s energy system: 1) enhance transparency through data and modelling, 2) integrate network planning across borders, and 3) strengthen alignment of national policies and plans. As the EU transitions towards greater reliance on domestically produced electricity, the economic stakes of fragmentation rise. These three steps are essential to address the weak coordination and incoherence of national system-development plans and policies. Moving beyond opaque planning by national grid companies will enable investors to set realistic expectations. A shared understanding of the system’s state and policy vision de-risks planning, accelerates deployment, lowers capital costs and reduces the risk of premature or stranded investments. To resolve the current lack of data transparency, an EU Energy Data Hub should be established to aggregate, clean and publish timely energy data, replacing the current reliance on opaque, fragmented and often private sources. EU-level integrated network planning would tie long-term energy and climate goals to strategic energy system development. While countries would continue to decide on their own energy mixes, this approach would ensure transparency and justify projects based on European welfare rather than special interests. Political cooperation should be strengthened by transforming current National Energy and Climate Plans into documents that guide public policies and investment, requiring stronger dialogue between EU countries and fostering trust between neighbours. This requires consistency across EU countries in terms of data and methodologies. The credibility of these plans would be based on links to EU policies, such as state-aid approval or subsidies for infrastructure projects. These recommendations aim to leverage the internal energy market as a strategic tool and to prevent regression to national, protectionist policies. By coordinating policies and infrastructure, the EU can ensure competitiveness and resilience, while transitioning to a decarbonised economy.