Environment
Why Do Distributional Effects Impede a Competitive Energy System in the EU?
The efficiency of the EU’s energy system is hindered by high capital costs and distributional effects, affecting industrial growth and posing political challenges to European electrification. The growing local generation of wind and solar energy requires a European infrastructure planning system to guide private investments. Overcoming these effects will be crucial for an efficient electric system that combines decarbonization and competitiveness.
November 17, 2025