Amidst increasingly common climate-change induced extreme weather events, the European power sector is at a crossroads. Eurelectric’s latest paper dives into how Distribution System Operators can boost climate resilience, presenting six case studies and five policy recommendations to prepare Europe’s grids for what lies ahead.

Extreme weather is stress-testing Europe’s grid

June’s heatwaves across Europe showed the effects of what living in the fastest warming continent feels like. It’s not just people that are feeling the heat – Europe’s power grids are under strain too.

DSOs are already taking action

This year, we saw the consequences when grid resilience falls short – blackouts, damaged infrastructure, and entire communities left in the dark.

“Storm Éowyn in January 2025 saw record-breaking wind gusts of up to 184km/h cause unprecedented, widespread, and extensive damage to electricity infrastructure, resulting in a total of 768,000 customers losing supply. This was by far the worst storm experienced by ESB Networks both in terms of customers losing supply and the scale of damage across the network” said Nicholas Tarrant, Managing Director, ESB Networks. “ESB Networks is focused on enhancing the resilience of the electricity network for homes, farms, and businesses across Ireland. A multi-year investment programme that will be required over the coming Price Review 6 period (2026 – 2030) and beyond, includes investment in both the transmission and distribution electricity system and is part of an overall €13.4 billion euro programme planned for the next five years”.

Proactive planning is essential

The challenge may be growing, but so is the solution. The paper highlights that DSOs are preparing by:

1. Mapping the exposure and the risks associated with climate change for grids
2. Reinforcing network resilience of lines, cables and substations
3. Preparing effective response measures to restore the grid in case of damages

National examples and best practises on policy

Italy: the regulatory incentive scheme for increasing resilience of distribution networks

In Italy, the National Regulatory Authority ARERA has effectively addressed the need to enhance the climate resilience of the distribution grid. Starting with investments in 2017, the NRA has required distribution companies to prepare Resilience Plans with a horizon of at least three years and to integrate them in a specific section of their Network Development Plans3. ARERA also defined an economic incentive mechanism for interventions with higher risk and positive net benefit. In December 2023, ARERA released a new incentive mechanism replacing and enhancing the previous one to widely include investments supporting the energy transition and the electrification. For the period 2024-2027, the updated regulatory mechanism rewards distribution companies for network development projects,
selected and approved based on a cost-benefit analysis, through a premium equivalent to two years of gross benefit with a ceiling of 13% of the lower value between expected and actual costs. It is worth remarking that this premium is an addition to the ordinary remuneration RAB-based for the same investments

France: indirect incentives for grid operators to become more resilient
The French National Adaptation Plan for climate change (PNACC-3), adopted in 2024, is France’s strategic response to the escalating impacts of climate change. It is designed around a +4°C warming scenario by 2100 in France, reflecting the need for adaptation across all sectors. This plan is part of a broader framework that includes the National Low Carbon Strategy (SNBC) and the Multiannual Energy Plan (PPE), ensuring coherence between mitigation and adaptation efforts. These policies aim to reduce GHG emissions while strengthening the country’s resilience to climate risks such as heatwaves, droughts, floods, and sea-level rise.
As critical infrastructure operators, electricity networks operators are part of this plan, as seen in Measure 31: “Ensuring the Resilience of the Energy System.” The plan calls for a comprehensive adaptation of both transmission and distribution systems to withstand more frequent and intense climate events. This includes adaptation measures against extreme heat, storms, and flooding, as well as modernising the grid through digitalisation and smart technologies.

On the other hand, to ensure the reliability of electricity supply, the government provides regulatory and financial incentives through mechanisms such as the TURPE (Tarif d’Utilisation des Réseaux Publics d’Électricité). This tariff system, regulated by the Commission de Régulation de l’Energie (CRE), includes performance-based incentives related to the SAIDI (System Average Interruption Duration Index). Enedis has committed to reduce this indicator below 60 minutes per year by 2030.

How to future-proof the grid

With the European Commission’s Climate Adaptation Plan due in the second half of 2026, Eurelectric developed six policy recommendations aiming to ensure that upcoming regulations truly support grid resilience – and enable a climate-proof energy transition:

1. Incentivise and recognise climate adaptation measures in national regulatory frameworks.
2. The upcoming Climate Adaptation Plan should put emphasis on climate adaptation measures for critical infrastructure.
3. The National Energy and Climate Plans (NECPs) should be amended to explicitly introduce a dimension of physical grid resilience.
4. The NZIA environmental criteria for public procurement procedures should include an aspect of climate adaptation.
5. National Regulatory Authorities (NRAs) should be explicitly responsible for addressing climate adaptation of electricity infrastructure.
6. Investments in resilience should be an integral part of the Distribution Network Development Plans (DNDPs).

Climate change is already testing Europe’s grids,  including Bulgarian grid infrastructure. It will continue to do so. Building resilience into grid planning, design, and regulation is not optional. It’s essential for a secure, affordable, and decarbonised electricity future.