Aligning US-EU Energy Grid Strategies: From Risk to Resilience

The strategic importance of critical energy infrastructure has come into sharp focus amid rising geopolitical tensions, extreme weather events, supply chain disruptions and hybrid threats. The April 2025 blackout across the Iberian Peninsula underscored that key infrastructure relies on a well-functioning power grid. In both the United States and Europe, aging grids – designed for centralised, one-way electricity flow – struggle to accommodate the two-way, variable inputs required by renewable energy sources. As electricity demand surges due to electrification and data centre growth, grids face investment gaps, mounting congestion, supply chain concerns and regulatory challenges. Meanwhile, China’s rapid rise as a global grid innovator and supplier introduces new risks to transatlantic technology stacks, including cybersecurity threats and supply chain dependencies. A coordinated US-EU approach to grid and transmission technology offers a strategic path to de-risking. Such cooperation could enhance resilience, foster competitiveness, reduce reliance on rivals and drive innovation and job creation.

Revised version of a paper presented at the IAI Transatlantic Symposium 2024–25, held in Rome on 9 May 2025.