From policy to pipelines: EU grid reforms support Nordic-German energy links
With electricity and hydrogen infrastructure now centre stage, the package creates new momentum for cross border energy projects. That includes the Danish-German hydrogen pipeline and new regulatory approaches to grid access on Denmark’s transmission grid, operated by Energinet.
For international energy and industrial investors, the package signals a shift towards removing one of Europe’s largest growth bottlenecks, placing Denmark in a strong position.
Grids are the backbone of Europe’s energy system
Energy infrastructure is the backbone of the European interconnected electricity network. Transmission grids stretch across and beyond the EU, enabling power to flow reliably across borders and allowing electricity to be traded by all market participants.
Electricity is not just a commodity. It is an essential service. An efficient grid must deliver power where and when it is needed, while maintaining security of supply for households and industry alike.
Yet grid capacity has not kept pace with demand. The EU’s target is for all member states to reach an interconnection rate of 15% by 2030. Fourteen countries are still below the threshold.
As a result, grids have become the largest bottleneck for new energy projects. The European Commission estimates that €584bn grid investments will be needed by 2030. Until now, investment levels have fallen short.
A European approach to fixing a European problem
The Grids Package marks a new approach to how Europe plans and delivers energy infrastructure.
Rather than focusing on national system isolation, the package introduces a stronger European perspective on infrastructure planning. It accelerates permitting procedures and promotes a fairer sharing of costs for cross border projects.
The goal is to expand existing capacity while building new energy highways that integrate renewable energy faster, reduce price volatility and strengthen Europe’s energy security.
This matters for investors. Stronger interconnectivity reduces exposure to geopolitical risk and price spikes, while enabling large scale electrification of industry, heat and transport.
Hydrogen infrastructure moves from ambition to action
Hydrogen plays a central role in the Grid Package, with a clear focus on delivery rather than declarations.
The package highlights three concrete points:
- Funding mechanisms to de-risk critical cross border projects
- Accelerated deployment through streamlined permitting
- Integrated planning and better system implementation
These priorities are already translating into action in Northern Europe.
Danish German hydrogen pipeline gains real momentum
The European Hydrogen Bank has launched its third auction, with a general funding pool of DKK 9.7 billion. On top of this, Germany has confirmed an additional DKK 9.7 billion specifically to support hydrogen production in Denmark.
This Germany contribution is structured as auction-as-a-service. It supports hydrogen producers who are not covered by the general EU pool, but who supply renewable hydrogen to the Danish-German hydrogen pipeline connecting Esbjerg and Ellund, or deliver to offtakers linked to Germany’s hydrogen backbone, the Kernnetz.
In practise, this directly links German subsidies to the build out of Danish-German hydrogen infrastructure. For producers and industrial users, it significantly improves investment certainty across the value chain.
Alongside the Hydrogen Bank, EU instruments such as the Connecting Europe Facility continue to underpin cross border energy infrastructure by supporting grid and hydrogen projects that strengthen Europe’s internal energy market.
Denmark strengthens grid access for new energy projects
Infrastructure developments is not only happening at EU level. In Denmark, Energinet has published a new strategy for connecting electricity consumers and producers at transmission level.
The strategy aims to reduce bottlenecks and create a more transparent and efficient process for new grid connection requests. This is particularly relevant for data centres, power intensive industry, PtX facilities and large-scale renewable projects.
More information on the subject here: Are you looking to connect a new facility to the electricity grid at transmission level?
Energinet has been open for a market dialogue since 1 January 2024 and input must be in writing and per email: [email protected]. The new model is to be implemented by 1 February 2026 and thereafter, Energinet will work on optimising the scheme.
For investors, this provides greater clarity on timelines, prioritisation and grid capacity planning.
Energinet's simple outline of the process for connecting your facility to the electricity grid in Denmark
Why this matters for international investors?
Europe is scaling up its energy system and Denmark is helping design it.
With strong interconnections, an accelerated hydrogen backbone and a proactive transmission system operator, Denmark offers investors early access to future proof energy infrastructure.
For companies looking to power European operations with renewable electricity, develop hydrogen projects or electrify industrial processes, Denmark combines policy momentum with practical delivery.
If you are considering energy intensive investments or cross border energy projects in Europe, Invest in Denmark is ready to help you navigate the opportunities.