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Grids Package
In December 2025 the European Commission presented the European Grids Package, consisting of a proposal to revise the TEN-E Regulation and one to accelerate permit granting processes by targeted amendments to the Renewable Energy Directive, Electricity Market Design and the H2 and Decarbonised Gas Directive.
In addition, the Commission released a Guidance on the efficient and timely grid connections, focussing on providing best practices to Member States, including on the first-ready first-served principle, transparent maturity criteria for all connection requests, clear milestones and associated penalties. Another Guidance focussed on the design of 2-way contacts for difference (CfD) for power-generating installation operators and a counterpart in a way that ensures efficient investments.
The proposals are designed to tackle the main challenges facing cross-border energy infrastructure in the EU by promoting coordinated planning, fair cost-sharing, and streamlined permitting processes. They also aim to improve the efficiency, resilience, and security of existing infrastructure through new technologies, flexibility, and increased storage capacity.
The package also introduced the concept of Energy Highways, addressing the most urgent energy infrastructure needs to help integrate more renewables into the system and reduce fossil reliance. The 8 Energy Highways receiving targeted financial and regulatory support are the: Iberian, Great Sea Interconnector, Harmony Link, TransBalkan Pipeline, Bornholm Energy Island, South-East Europe, SouthH2 Corridor, and Southwest hydrogen corridor.
What’s in it for hydrogen?
Directly relevant for the hydrogen sector, the Grids Package addresses three key aspects of energy infrastructure:
Funding mechanisms for derisking critical cross-border infrastructure: The Commission recognises the need to develop instruments that distribute the risks between public and private actors, and allocate the costs over time, until there is a sufficient customers base to cover infrastructure costs.
Accelerated deployment through streamlined permitting: The Package's Directive on Accelerating Permitting aims to simplify administrative processes for hydrogen infrastructure. However, unlike electricity grids, the hydrogen backbone does not receive equivalent support, and hydrogen storage is excluded from these faster permitting procedures—creating major obstacles for long-term projects.
Integrated planning and improved system cohesion: Recent proposals to modify the Ten Year Network Development (TYNPD) process demonstrate a renewed focus on sector integration and comprehensive planning at the core of Europe’s infrastructure objectives. Although the European Network of Network Operators for Hydrogen (ENNOH) now operates on the same level as the European Network of Transmission System Operators for Electricity (ENTSOE) when preparing infrastructure needs reports, ENNOH is not yet involved in defining the Offshore Network Development Plans. These plans also encompass hydrogen infrastructure targets and strategies.
Links to Legislation and additional information:
European Grids Package
