The Grids Package

A well-functioning electricity market, such as the Nordic electricity market, is crucial in facilitating efficient use of our resources and ensuring security of supply. It is essential that we maintain and further develop a well-functioning, integrated electricity market based on the principle of effective use of our resources, to the benefit of all. To enable a successful green transition and avoid backlash, our energy system and market design needs legitimacy and public acceptance. I am concerned that some of the measures in the Commission proposal on the Grids package are taking us in the wrong direction.

I support taking measures for a secure and efficient energy system, and to increase European competitiveness. Sufficient grid capacity, including interconnections, is important to ensure security of supply and flexibility in the energy system. In this regard, measures reducing administrative burden and increasing efficiency of permitting procedures are key. Equally important are measures to ensure that existing energy production and infrastructure, is used in the most efficient manner.

There is a lot of potential for streamlining and speeding up permitting procedures on local and national levels. The Norwegian government is continuously working on ensuring the most efficient use of our electricity grids and have put forward a range of measures to increase grid investments and streamlining permitting procedures while ensuring public acceptance and local involvement. In my view, several of the proposed measures in the Grids package regulate issues that are best left to the discretion of each State.

Allow me to highlight some of the proposed legislative measures which I believe should be adapted or removed completely:

  • Ring-fencing congestion revenue

    I see no need to amend the regulation on use of congestion revenues. The existing electricity market regulation already provides rules for use of congestion income in Member States.
    Consumers need to benefit from interconnected markets, not only bear the costs. This is important for public acceptance. Furthermore, ring-fencing congestion revenues from trade between internal bidding zones would create a disincentive to establish efficient bidding zones. Efficient bidding zones reduce costs and provide important investment signals for energy suppliers and consumers. Especially in a weather-based power market, the costs of balancing the system are lowered, and production is utilised in the most efficient manner.

  • Centralisation of infrastructure planning

    The responsibility for grid development and system operation should remain with TSOs, as operational experience is central to assessing which measures are socio-economically rational and necessary. I stress the need to retain flexibility in planning, to account for sensitivities and local features in different member states, and that a central EU scenario cannot be the sole basis for development plans and investment decisions.

  • Tacit approval of projects

    I acknowledge the need for more efficient permitting procedures. There is substantial room for improvement of existing processes. However, tacit approval systems may incentivise rushed or strategically incomplete applications, or conversely push authorities toward defensive refusals, neither of which improves outcomes. The final decision to approve energy projects lies with each State. States should therefore have sufficient flexibility to adjust its procedures according to national situations and sensitivities.


Please find attached a more elaborated Norwegian views on the proposed legal acts in the Grids package.