The investment targets both electricity grids and emerging hydrogen infrastructure, reflecting Brussels' push to strengthen energy security while cutting reliance on fossil fuels.
Spain is set to receive the largest share for electricity-related upgrades, with €180 million allocated to projects aimed at expanding capacity and improving grid resilience. A separate regional initiative involving Poland, Estonia, Latvia and Lithuania will secure €112 million, while Romania and Bulgaria will jointly receive €103 million to modernise their interconnected power systems.
Smaller allocations are also heading to Austria, Slovakia and a Greece–Egypt interconnection project, as part of a wider package designed to boost cross-border cooperation and integrate renewable energy more efficiently.
The funding is being distributed through the Connecting Europe Facility, a programme that supports strategic infrastructure across member states. Officials say the projects will help ease grid congestion, reduce power curtailment and prevent clean electricity from being wasted — a growing problem as wind and solar generation accelerates faster than network upgrades.
Energy analysts have repeatedly warned that outdated grids lack the flexibility and digital controls needed to manage variable renewable power. Without major investment in transmission lines, smart systems and storage, they argue, Europe risks turning its clean energy surplus into an economic liability rather than a climate solution.
In Spain, part of the funding will support development of the Aguayo hydroelectric project, which is expected to deliver up to 10 gigawatts of capacity by 2027 — enough to supply electricity to several million households.
The Baltic project aims to better align infrastructure between Poland and its northern neighbours, a move the Commission describes as strategically important given the region's proximity to Russia. Meanwhile, the Romania–Bulgaria initiative focuses on upgrading distribution and transmission networks to smart-grid standards while increasing regional interconnectivity.
Energy and Housing Commissioner Dan Jørgensen said the investments would help deliver "clean and affordable energy" while strengthening Europe's competitiveness and reducing dependence on external suppliers.
"These projects move Europe closer to energy independence and provide a stable foundation for future growth," he said.
Hydrogen storage and terminals gain momentum
Germany has emerged as the main beneficiary of hydrogen-related funding. A storage project in Gronau-Epe will receive more than €120 million, while a hydrogen import terminal in Wilhelmshaven has been awarded just over €10 million.
The Netherlands will also receive significant support for its ACE hydrogen terminal in Rotterdam, which will be used to import ammonia and convert it back into hydrogen for industrial applications. The facility is being developed by the national gas network operator alongside international energy and logistics companies.
Additional hydrogen projects in Austria, Bulgaria, France and Slovakia have also secured EU backing.
Brussels has identified hydrogen as a cornerstone of its long-term decarbonisation strategy, with targets to produce 10 million tonnes domestically and import a further 10 million tonnes by 2030.
However, critics note that the majority of eligible hydrogen proposals submitted last year came from gas transmission operators, raising concerns that legacy fossil fuel interests could dominate the sector's early development.
The European Commission is expected to open its next round of applications for cross-border energy infrastructure funding between April and June, as it continues to scale up investment in networks seen as critical to the bloc's clean energy transition.