TenneT, the Dutch-German electricity transmission system operator, is facing a series of significant challenges in its bid to expand and modernize Europe’s power grid.
At the Wind Europe 2025 conference held in Copenhagen, TenneT CEO Manon van Beek outlined three key bottlenecks that are hindering the company’s efforts to accelerate grid infrastructure development.
These obstacles—regulatory delays, supply chain constraints, and public resistance—pose substantial risks to achieving the company’s ambitious goals of enhancing grid capacity and accommodating the increasing demand for renewable energy.
1. Regulatory Delays and Uncertainty
One of the most pressing issues, according to Manon van Beek, is the lack of clear and consistent regulations.
She highlighted that the absence of long-term policy stability creates an unpredictable environment for investors and developers.
This uncertainty causes delays in the planning and execution of grid expansion projects, as stakeholders are hesitant to commit without a clear regulatory framework in place.
Van Beek emphasized that urgent action is needed from policymakers to provide stability and clarity in the regulatory landscape.
Streamlining processes and ensuring long-term policy consistency are vital to speeding up the grid expansion necessary for Europe’s clean energy transition.
With regulatory uncertainty in place, projects are often delayed or even canceled, leading to slower progress in meeting Europe’s climate and energy targets.
2. Supply Chain and Logistics Constraints
As the demand for renewable energy sources such as solar and wind power increases, so does the need for grid infrastructure capable of supporting these energy sources.
However, TenneT has encountered significant supply chain bottlenecks.
The rapid growth in demand for renewable energy technologies has outpaced the capacity of the supply chain, particularly for critical components such as transformers, cables, and other essential equipment.
Van Beek noted that this shortage of key components is a major factor in project delays.
In addition to extending timelines, supply chain constraints drive up costs, making it even more challenging for TenneT to meet its ambitious expansion targets.
The increased demand for components and the slow pace at which supply chains are catching up creates a logistical headache that hampers the timely development of essential infrastructure.
3. Public Resistance and Local Opposition
Another challenge that TenneT faces in expanding its power grid is public resistance.
The construction of new transmission lines and substations often faces opposition from local communities.
Concerns about environmental impacts, land use, and the aesthetics of new infrastructure have led to prolonged permitting processes and, in some cases, the outright cancellation of projects.
Van Beek stressed the importance of addressing these concerns through transparent communication and community engagement.
Building public support for grid expansion is essential to overcoming this barrier.
It requires ongoing efforts to educate the public about the long-term benefits of grid modernization and the critical role it plays in Europe’s clean energy transition.
Without this support, further delays in grid expansion could become inevitable.
TenneT’s Strategic Investments to Overcome Bottlenecks
Despite these challenges, TenneT is committed to overcoming the bottlenecks and ensuring the expansion of its power grid.
The company has made substantial investments to strengthen grid capacity, with plans to invest approximately €200 billion by the end of 2034.
In 2024 alone, TenneT exceeded €10 billion in investments, focusing on reducing grid congestion and increasing capacity to accommodate the growing integration of renewable energy sources.
While TenneT has already made significant progress, the company remains focused on addressing the regulatory, supply chain, and public opposition challenges that threaten to slow down grid expansion efforts.
The proactive approach outlined by Van Beek signals TenneT’s commitment to tackling these hurdles head-on to ensure that the company’s grid expansion plans stay on track.
Future Outlook
The future of Europe’s power grid depends on overcoming the identified bottlenecks.
TenneT’s proactive approach and strategic investments underscore the urgency of addressing regulatory, logistical, and societal challenges.
By making the necessary adjustments and investments, TenneT hopes to pave the way for a more integrated and resilient European power grid capable of supporting the clean energy transition.
Ultimately, overcoming these challenges is crucial for meeting Europe’s renewable energy goals.
As the energy landscape continues to evolve, grid modernization will remain a key factor in ensuring that Europe’s power grid can efficiently and effectively support renewable energy sources while providing reliable electricity to homes and businesses across the continent.