The new report also said that key European countries, including Germany, France, UK, Norway, Italy, Ireland, and France will invest more on grid expansion and upgrade programs in order to increase security of electricity supply, install smart grid technology and accommodate new sources of power generation, particularly renewable energy.
European T&D grids are characterized by issues related to network congestion and the integration of distributed energy resources, according to the report.
The report stated that by providing a broader generation base, interconnections can improve energy supply security and reduce the need for the additional construction of power generation capacity.
ReportsnReports’ senior analyst said, "Renewable energy accounted for around 70% of the total power generation capacity additions made in the EU in 2012, and further additions are being introduced as a result of EU targets on reduce greenhouse gas emissions and to increase the share of renewables total energy consumption by 2020."
According to the analyst, the aging nature of the T&D networks in Europe has raised concerns regarding the stability of the electricity supply and has prompted a number of nations to frame policies for the incorporation of efficient technologies into the grid.
"Europe is expected to invest heavily in the establishment of transmission infrastructure as it strives to create cross-border grid interconnections and harness the energy generated from renewable sources around the continent," the analyst added.
