On 26 June 2026, the Council agreed its negotiating position on the European grids package, which includes a revision of the Trans-European Networks for Energy (TEN-E) Regulation and a new permitting directive (“Package”). The Package aims to modernise and expand Europe’s energy infrastructure in order to support electrification, decarbonisation, energy security and better cross-border interconnections. The Council documents are available at this link.

The Package introduces a more coordinated approach to energy infrastructure planning across electricity, hydrogen and gas networks. A central scenario, to be developed by the European Commission with input from Member States and stakeholders, should help identify long-term infrastructure gaps, bottlenecks and investment needs.

A key element of the Package is the use of congestion income to support better interconnections among Member States. The Member States agreed that a portion of the unspent congestion income will be reinvested into cross-border projects aimed at reducing congestion. The allocation is expected to increase gradually, starting at 10% from 1 January 2028 and reaching 25% by 2031.

The Council also placed a strong emphasis on security and resilience of the energy system. In response to increasing risks such as sabotage, physical attacks and cyber-attacks, energy ministers supported a new category of priority projects focused on protecting and repairing existing electricity infrastructure.

Another important part of the proposal is the acceleration of permitting procedures. The Council supports faster and more transparent permitting, including the use of digital portals and designated authorities to simplify applications for energy infrastructure projects.

The agreed position now enables the Council to enter negotiations with the European Parliament. If adopted, the package could become an important step towards a more integrated, resilient and climate-neutral European energy system.