By Dr Andreas Poullikkas
Professor of Energy Systems
Frederick University
Although the EU managed to stabilise prices and secure supply at the height of the energy crisis, energy bills remain a real cause for concern for millions of Europeans. As the President of the European Commission, Ursula von der Leyen, emphasised in her recent State of the Union address on 10 September 2025, the main cause of rising 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 address the structural weaknesses of Europe’s energy system. To eliminate eight critical points of energy congestion, the EU seeks to turn the energy crisis into an opportunity to achieve genuine independence from Russian fossil fuels. The solution lies in the massive production of clean domestic energy and the modernisation of the trans-European interconnection infrastructure. The “Energy Highways” initiative is the central instrument for achieving these objectives.
In detail, the eight projects to be included in the EU initiative are: (a) optimal integration of the Iberian Peninsula by means of energy interconnections across the Pyrenees to France; (b) the connection of Cyprus to the EU internal electricity market to end its electrical isolation; (c) the strengthening of energy interconnections in the Baltic countries; (d) the improvement of energy supplies in the Balkans and the EU’s eastern neighbourhood; (e) the transformation of the North Sea into an offshore interconnection hub; (f) the Southern hydrogen corridor linking the North Sea with the Mediterranean (SoutH2); (g) the South-West hydrogen corridor from Portugal to Germany (H2Med); and (h) measures to improve price stability and energy security in South-East Europe.
Strengthening the Iberian Peninsula’s connections is key to the EU’s single electricity market: Spain and Portugal currently have some of the lowest interconnection rates in the EU, able to exchange only around 3% of their electricity. This isolation becomes dangerous, as shown by the massive power outage that hit both countries in 2025. The Bay of Biscay project, scheduled for completion in 2028, will increase capacity to 5,000 megawatts from the current 2,800 megawatts, allowing surplus renewable energy from Spain and Portugal to flow to northern European markets, lowering prices and increasing supply security.
The Great Sea Interconnector is a cornerstone project for the EU single electricity market, as it will end Cyprus’s electrical isolation — Cyprus being the only EU Member State currently without an interconnection. Beyond its European dimension, the project also acquires geostrategic significance through its link to the IMEC corridor (India–Middle East–Europe Economic Corridor). The Cyprus–Israel electricity interconnection is now part of IMEC’s energy pillar, placing Cyprus as a central hub connecting Asia, the Middle East and Europe. This means Cyprus could act as an energy bridge for the transfer of clean energy from Israel and the wider region to Europe. The first Greece–Cyprus phase, with a capacity of 1,000 megawatts, is expected to be completed by the end of 2030.
The Baltic countries have already achieved a historic milestone with full synchronisation to continental Europe in February 2025, ending their dependence on Russia. The successful completion of the synchronisation of Estonia’s, Latvia’s and Lithuania’s power grids with continental Europe on 9 February 2025 marked full energy independence from Russia and Belarus. Existing interconnection infrastructure (Estlink, NordBalt, LitPol Link) already provides a strong safety network, while future projects such as Harmony Link will further consolidate integration into the EU single electricity market.
The Trans-Balkan Electricity Corridor is crucial for extending the single market into the Western Balkans. The project is being developed in four sections, two of which are already complete. Through the corridor, more than one million consumers in Serbia will benefit from improved connectivity and more stable voltage. The project forms part of the EU’s wider plan for the Western Balkans, contributing to the gradual integration of the region’s countries into European energy institutions.
Transforming the North Sea into an offshore interconnection hub 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 high-voltage direct-current links to the continent. The first artificial island will cover an area of 6 square kilometres in the Dogger Bank region. With potential development of up to 110 gigawatts of wind capacity, the project will cover a significant proportion of Europe’s clean energy needs, while technologies for producing green hydrogen directly from the wind farms will provide flexibility in supply management. Development is planned in functional units, each comprising 4 gigawatts of wind power, 2 gigawatts of electrolysis capacity for green hydrogen production and 2 gigawatts of electrical interconnection for electricity export.
The SoutH2 Southern hydrogen corridor is key to the EU single market’s transition to the hydrogen era. Stretching 3,300 kilometres, it will link North Africa to Germany via Italy and Austria, providing import capacity of 4 million tonnes of hydrogen per year. The project is being implemented by a consortium of transmission system operators: Snam (Italy), TAG and GCA (Austria), and bayernets (Germany). The fact that more than 70% of existing natural-gas pipelines can be adapted for hydrogen transport substantially reduces costs and accelerates implementation, making the corridor a cornerstone for creating a pan-European hydrogen market.
The South-West hydrogen corridor H2Med from Portugal to Germany represents the EU’s first green-hydrogen corridor. The project comprises two main subprojects: (a) CelZa — a 248-kilometre interconnection between Portugal and Spain with a maximum capacity of 0.75 million tonnes of hydrogen per year; and (b) BarMar — a 455-kilometre subsea pipeline between Barcelona and Marseille with a capacity of 1.5 million tonnes of hydrogen per year. With total transport capacity in excess of 2 million tonnes of hydrogen per year, the corridor will create new momentum in the single market, allowing surplus renewable energy from the Iberian Peninsula to be converted into hydrogen and exported to industrial regions in central Europe. The integration of national hydrogen networks will create a unified European hydrogen transmission system.
Improving price stability and energy security in South-East Europe focuses on creating a single market in the Western Balkans. The region remains heavily dependent on fossil fuels and possesses ageing energy infrastructure, with electricity prices subject to large swings. Projects such as the Greece–Bulgaria interconnector, inaugurated 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 licensing procedures remain the main cause of delays, especially for cross-border projects that require coordination among multiple countries. Environmental assessments for subsea cables and energy islands extend project timelines, while technological challenges are equally important. Hydrogen technology is still maturing, and safety requirements for hydrogen pipelines are stricter than those for natural gas.
For these reasons the “Energy Highways” initiative represents a new phase in European energy strategy. The successful implementation of the eight projects will transform the EU’s energy landscape, lowering prices and increasing supply security. However, success will depend on consistent political backing, the efficiency of bureaucratic processes, and the ability of European societies to accept the temporary disruptions large-scale infrastructure projects require. The President of the European Commission stressed that Europeans need affordable energy now, and it appears that the “Energy Highways” initiative will make a significant contribution to providing stable and affordable energy to all EU citizens, enhancing market interconnection, promoting competitiveness and supporting the transition to clean energy sources.
Source: Frederick University | News (https://frederick.ac.cy/en)