BRUSSELS, Nov 24 — The European Commission has drafted plans to scale up investment in Europe’s power grids, including dozens of projects earmarked for priority access to permits and EU funding, a draft document seen by Reuters showed.

Europe will need to invest €584 billion (RM2.9 trillion)to upgrade its power grids this decade, according to European Union estimates. Many grids are decades old and need to be adapted from the traditional model of large, fossil fuel power plants to wind and solar power generation.

To kick-start grid investments, the Commission will propose a plan next week.

A draft seen by Reuters said that Brussels will grant "projects of common interest” status to 68 electricity projects, granting them access to faster permits and certain EU funds. A dozen of the projects are for energy storage.

"Grids need to adapt to a more decentralised, digitalised and flexible electricity system with millions of rooftop solar panels and local energy communities sharing resources,” the draft said.

A Commission spokesperson declined to comment on the draft document, which could be amended before it is published.

Brussels will also work with investors, regulators and credit agencies to make it easier for grid projects to secure loans, equity and guarantees while also exploring new financing instruments with the European Investment Bank.

Europe’s electricity industry has warned that power grids are becoming a bottleneck to clean energy provision because grids are not being upgraded fast enough to cope with all the renewable energy projects waiting to plug into the network.

The EU and power network regulators will also develop various recommendations and guidelines for the Europe-wide overhaul, the Commission document said, such as guidelines on the types of grid investments that should be approved.

The draft document was previously reported by Bloomberg News. — Reuters