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A Historic Surge in Investment

European transmission system operators (TSOs) are entering a period of unprecedented capital deployment as they support the continent’s accelerating energy transition.

Over the next five years, the 15 largest TSOs are projected to invest €345 billion, nearly tripling the amount deployed in the preceding five years. 2024 capital expenditures alone are estimated to be approximately 50% higher than the year before. TSOs are mobilizing all available funding levers—including debt, equity, and asset sales—to keep pace with demand.

However, with this explosive growth in investment, TSOs face a looming capital shortfall. A BCG Center for Energy Impact analysis projects a €250 billion gap between expected operating cash flows and required capex through 2030. Without new approaches to financing and capital efficiency, TSOs may fall short of delivering the infrastructure needed to meet Europe’s climate and reliability goals.

Pressures on the Financial Model

Despite clear signals that investment needs to scale, the current financial model underpinning Europe’s TSOs is experiencing considerable pressure. There are three core tensions shaping the landscape:

Strategic Choices for TSOs

TSOs must adjust their strategic footing to thrive in the new capital environment. In practical terms, this means:

The Role of Policymakers and Regulators

Governments and regulators must also evolve their frameworks to support this wave of investment:

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About the Report
This report from BCG’s Center for Energy Impact focuses on the capital challenges facing Europe’s leading electricity transmission system operators (TSOs) and the strategic questions they raise. The analysis covers 15 leading European TSOs across ten countries, collectively representing €175 billion of fixed assets and €345 billion of capex over the next five years. Each company’s ability to respond to the current environment is shaped by its ownership structures, local regulatory environments, and business portfolios—but the fundamental dilemma is shared across the continent. While this report focuses on the financial and strategic dimensions, it represents just one component of a broader capital agenda that also encompasses critical issues such as permitting, local stakeholder concerns, and supply chain capacity.