Europe is faced with two major challenges: decarbonisation and the transition towards climate-neutrality on the one hand, and energy security of supply and the pursuit of more European resilience and autonomy on the other. This is a key issue for its competitiveness.

 

A fundamental review of energy market policies is required, taking a systemic approach. National policy barriers to the creation of a single EU energy market must be addressed as well as the future deployment of different sources of renewable energy and pricing mechanisms. Member States should adjust their energy policies to the realities of the single market, reduce costs and enhance energy grids as well as address cost allocation along value chains in a way that preserves industrial competitiveness. 

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Adequate energy grids must be developed across Europe, also with an eye to future consumption by data centres and increased AI. Insufficient infrastructure drives up energy costs due to inefficiencies in redistribution and storage. Dedicated funding mechanisms are needed in a fully operational CSU , to complement EU-level energy systems research, to cover infrastructure (including tariff regulation) and market design, as well as a comprehensive industry vision and policy framework to guide energy infrastructure investments and the effective use of ETS revenues to accelerate decarbonisation.

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This requires more attention to energy governance, moving beyond reactive crisis management towards an integrated strategy that ensures technological neutrality while balancing costs and benefits. The current policy framework remains stuck in a business-as-usual approach, failing to adapt to the evolving needs of industries and consumers, who increasingly require support in a more guided market, especially during the transition.

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This HLG is chaired by Andris Piebalgs, former EU Commissioner for Energy. ​​​​