Filenews 21 September 2025 - by Andreas Poullikkas
Although the EU managed to stabilise prices and secure supplies at the height of the energy crisis, energy bills are still a real concern for millions of Europeans. As European Commission President Ursula von der Leyen pointed out in her recent annual State of the Union address on September 10, 2025, the main reason for the rise in prices is well known – dependence on Russian fossil fuels.
The "Energy Highways" initiative announced by the President of the European Commission is an attempt to solve the structural weaknesses of the European energy system. To eliminate eight critical energy bottlenecks, the EU is trying to turn the energy crisis into an opportunity to achieve real independence from Russian fossil fuels. The solution lies in the mass production of clean domestic energy and the modernisation of the trans-European energy interconnection infrastructure. The Energy Highways initiative is the central tool for achieving these goals.
In detail, the eight projects to be included in the EU initiative are (a) the optimal integration of the Iberian Peninsula with energy interconnections through the Pyrenees to France, (b) the connection of Cyprus to the EU's internal electricity market to end its electrical isolation, (c) the strengthening of energy interconnections in the Baltic States, (d) the improvement of energy supply in the Balkan region and the Eastern Neighbourhood, (e) the transformation of the North Sea into an offshore interconnection hub, (f) the Southern Hydrogen Corridor connecting the North Sea to the Mediterranean, (g) the South-West Hydrogen Corridor from Portugal to Germany, and (h) the improvement of price stability and energy security in South-East Europe.
Strengthening the Iberian Peninsula's connections is key to the EU's single electricity market as the two countries have one of the lowest interconnection ratios in the EU, with only 3% of their energy exchangeable. This isolation is becoming dangerous, as demonstrated by the massive power outage that hit the two countries in 2025. The Bay of Biscay project, scheduled for completion in 2028, will increase capacity to 5000 megawatts from the current 2800 megawatts, allowing Spain and Portugal's surplus renewable energy to flow to Europe's northern markets, driving down prices and increasing security of supply.
The Great Sea Interconnector is a key project for the EU's single electricity market, as it will end the electrical isolation of Cyprus as the only EU Member State without an interconnector. Beyond the European dimension, however, the project acquires geostrategic importance through its connection with the IMEC (India-Middle East-Europe Economic Corridor) corridor. The Cyprus-Israel electricity interconnection is now part of IMEC's energy pillar, making Cyprus a central interconnection hub between Asia, the Middle East and Europe. This means that Cyprus will be able to act as an energy bridge for the transport of clean energy from Israel and the wider region to Europe. The first phase Greece-Cyprus with a capacity of 1000 megawatts is expected to be completed by the end of 2030.
The Baltic countries have already reached a historic milestone with full energy synchronization with continental Europe in February 2025, ending dependence on Russia. The successful completion of the synchronisation of the electricity grids of Estonia, Latvia and Lithuania with Continental Europe on 9 February 2025 marks full energy independence from Russia and Belarus. The existing interconnection infrastructure (Estlink, NordBalt, LitPol Link) already provides a strong safety net, while future projects such as Harmony Link will further consolidate integration into the EU's single electricity market.
The Trans-Balkan Electricity Corridor is a crucial element for the expansion of the single market in the Western Balkans. The project is progressing in four sections, with the first two already completed. Through the corridor, over 1 million users in Serbia will benefit from improved connectivity and more stable voltage. The project is part of the EU's broader plan for the Western Balkans, contributing to the gradual integration of the countries of the region into the European energy institutions.
The transformation of the North Sea into an offshore hub for electricity interconnections represents the future of the EU's single electricity market. The North Sea Wind Power Hub envisages the creation of artificial islands that will connect thousands of wind turbines with efficient direct current connections to mainland Europe. The first artificial island will cover an area of 6 square kilometers in the Dogger Bank area. With the potential to deploy up to 110 gigawatts of wind capacity, the project will cover a significant part of Europe's clean energy needs, while green hydrogen generation technologies directly from wind turbines will provide flexibility in supply management. The deployment is planned per operating unit, each of which will consist of 4 gigawatts of wind power, 2 gigawatts of electrolysis plants for green hydrogen production, and 2 gigawatts of electrical interconnection for electricity extraction.
The Southern Hydrogen Corridor SoutH2 is key to the transition of the EU's single market to the hydrogen era. With an area of 3300 kilometers, it will connect North Africa with Germany via Italy and Austria, providing a capacity to import 4 million tons of hydrogen per year. The project is being implemented by a consortium of transmission system operators Snam in Italy, TAG and GCA in Austria, and Bayernets in Germany. The fact that over 70% of gas pipelines can be adapted for hydrogen transport drastically reduces costs and speeds up implementation, making the corridor a key element in the creation of the pan-European hydrogen market.
The H2Med Southwest Hydrogen Corridor from Portugal to Germany is the first green hydrogen corridor in the EU. The project consists of two main sub-projects: (a) CelZa is a 248-kilometer interconnector between Portugal and Spain with a maximum capacity of 0.75 million tons of hydrogen per year, and (b) BarMar consists of a 455-kilometer undersea pipeline between Barcelona and Marseille with a capacity of 1.5 million tons of hydrogen per year. With a total transport capacity of more than 2 million tonnes of hydrogen per year, a new dynamic will be created in the single market, allowing the Iberian Peninsula's surplus renewable energy to be converted into hydrogen and exported to the industrial areas of central Europe. The integration of all national hydrogen networks will create the single European transmission system.
Improving price stability and energy security in South-East Europe focuses on creating a single market in the Western Balkans. The region is heavily dependent on fossil fuels and has an old energy infrastructure, with electricity prices fluctuating greatly. Projects such as the Interconnector Greece-Bulgaria launched in 2022 are examples of successful cross-border cooperation.
Despite political commitment and available funding, the implementation of the eight projects faces significant challenges. Bureaucratic permitting procedures remain the main cause of delays, particularly for cross-border projects that require coordination between multiple countries. Environmental assessments for submarine cables and energy islands are extending timelines, while technological challenges are equally significant. Hydrogen technology is still maturing, while safety requirements for hydrogen pipelines are stricter than those for natural gas.
That is why the Energy Highways initiative represents a new phase in the European energy strategy. The successful implementation of the eight projects will transform the EU's energy landscape, reducing prices and increasing security of supply. However, success will depend on consistency in political support, the efficiency of bureaucratic procedures and the ability of European societies to accept the temporary changes required by large infrastructures. The President of the European Commission stressed that Europeans need affordable energy right now and it appears that the Energy Highways initiative will make a significant contribution to providing stable and affordable energy to all EU citizens by strengthening the interconnection of markets, promoting competitiveness and supporting the transition towards clean energy sources.
Professor of Energy Systems
Frederick University
