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A EUR 1.2 Trillion Grid Transformation — Opportunities Opened to Korean Power & Energy Companies by the EU Grids Package
Europe's renewable-energy transition is bottlenecked by its power grid. According to Samjong KPMG Economic Research Institute's Business Focus, the European Commission announced the EU Grids Package in December 2025 to strengthen energy security and reach its 2050 carbon-neutrality goal. The backdrop: more than 40% of the EU's grid is over 40 years old, renewable projects face 4–10 years of repeated grid-connection delays, and EU industrial electricity prices are USD 0.21/kWh — roughly double those in the US (USD 0.08) and China (USD 0.10).
EUR 1.2 trillion in investment and a flagship infrastructure plan. The EU Grids Package consists of two pillars: ① strengthening the institutional framework, and ② executing flagship infrastructure programs. EUR 1.2 trillion in investment is planned through 2040, split into a priority tranche of EUR 470 billion (about seven projects) and a follow-on EUR 730 billion. The “Energy Highways” program will begin construction of eight critical cross-border connections from 2027 onward, with a full 8-corridor backbone targeted around 2030.
Opportunities and risks for Korean companies. The EU grid transition opens three opportunity lines for Korea: exports of ultra-high-voltage transformers and power cables, ESS market expansion, and rising demand for smart-grid and digital solutions. Risks include EU-specific localization requirements (NZA, AA certifications), limited HVDC and ultra-high-voltage track record, and heightened ESG and carbon competitiveness requirements (CBAM, DPP) for supply-chain participation.
What this means for M&A. The EU Grids Package presents Korean companies with M&A entry points into Europe's power-grid ecosystem. First, Korean firms with limited HVDC and ultra-high-voltage references can acquire local European power-equipment and cable companies to secure “Made in EU” status. Second, bolt-on acquisitions or technology partnerships with European digital-power startups holding smart-grid capabilities (EMS, system monitoring) can be a fast track into a fast-growth market. Third, the value of providers with carbon-emission tracking and supply-chain ESG management systems is rising alongside CBAM and DPP regulatory expansion — pre-emptive acquisitions in this space are becoming a prerequisite for European operations.
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Full report: Samjong KPMG Economic Research Institute, Business Focus (April 2026)
Contact: Samjong KPMG M&A Center