Europe is facing a substantial investment gap in its electricity grid, projected to reach €1.2 trillion by 2040. This gap arises from the rapid pace of electrification, increased demand for data, and the emergence of clean technologies, all of which are outstripping current infrastructure capabilities.
In response to these challenges, major players such as Amazon, Google, Microsoft, and other significant industrial firms have come together to form the Green Industrial Grids Association (GIGA). This new industry body is focused on reforming grid policies, planning, and financing to enhance Europe’s energy transition. The formation of GIGA aims to tackle the critical issue of grid congestion and slow connections, which jeopardize both decarbonization efforts and industrial competitiveness.
GIGA’s membership includes key companies with significant electricity needs, such as Hitachi Energy, Siemens Energy, Linde, and electric vehicle charging operators like Electra and Fastned. The association seeks to address what its members describe as a significant oversight in Europe’s energy policymaking, where grid users have historically had a limited say in infrastructure planning, despite their essential role in demand growth.
The urgency of improving grid infrastructure is underscored by growing electricity demands across various sectors, including manufacturing and consumer adoption of electric vehicles and heat pumps. However, issues such as outdated infrastructure, fragmented planning, and prolonged permitting processes have resulted in lengthy connection wait times across parts of Europe.
The International Energy Agency has highlighted that global grid investment must double to $600 billion annually by 2030 to meet Paris Agreement objectives. In Europe, the European Commission has specifically pointed out the need for €1.2 trillion in grid investments by 2040 to support climate neutrality and economic growth.
GIGA’s mission includes providing technical expertise to policymakers to ensure that infrastructure development aligns with emerging demand. The organization will advocate for quicker deployment of existing technologies to alleviate current network congestion and promote targeted incentives for grid modernization. GIGA also aims to facilitate third-party financing for these initiatives and push for changes in grid connection processes away from first-come-first-served models toward more efficient project readiness-based allocations.
Matt Ersin, GIGA’s chair and senior director at Fastned, emphasized that the energy transition in Europe will only succeed if grid developments keep pace with industrial electrification and digital advancements. By presenting a unified industry vision, GIGA aims to foster a competitive and decarbonized future for Europe.
The initiative arrives at a critical time when the European Union is working on a new European Grids Package that aims to streamline cross-border planning and reduce project delivery costs. The outcomes of these negotiations in the European Parliament and Council are poised to have significant financial repercussions, as delays in grid connections could hamper billions of euros in private investments.
For executives and investors, access to grids is increasingly becoming a strategic priority, paralleling concerns over power pricing and carbon exposure. GIGA’s formation illustrates a growing collective effort among major corporations to engage in unified policy advocacy rather than isolated solutions. The focus on third-party financing and prospective investments represents new opportunities in grid equipment, digital optimization, and infrastructure capital.
Ultimately, Europe’s ability to modernize its energy grids is crucial for achieving low emissions and maintaining industrial competitiveness. GIGA’s approach of integrating industrial demand into policy discussions highlights the critical need for faster energy networks, not just an increase in renewable resources, to accelerate the energy transition.