From Steel to Composite, a Strategic Transformation of European Power Grids

Why It Matters

The transition enables European grids to accommodate renewable growth and electrification while avoiding costly, time‑consuming new infrastructure, accelerating the continent’s energy transition.

Key Takeaways

• TenneT adopts composite-core cables for grid upgrade
• Epsilon Cable wins multi-year framework with TenneT
• Composite conductors increase capacity without new towers
• Steel-core limits ampacity due to thermal expansion
• Long-term contracts enable industrial scaling and cost competitiveness

Pulse Analysis

Europe’s power‑grid operators are confronting a paradox: renewable energy and electrification are expanding faster than the legacy steel‑core infrastructure can safely carry. Traditional conductors heat up under higher currents, expanding and forcing operators to curtail flow to protect towers and clearances. Composite‑core cables, with superior thermal conductivity and lower expansion, allow existing structures to transmit more power without the environmental and social hurdles of building new lines. This technical advantage is reshaping grid upgrade strategies across the continent, positioning composites as a cornerstone of the energy transition.

Beyond the engineering benefits, the shift reflects a new business paradigm. Multi‑year framework agreements, like the one between TenneT and Epsilon Cable, give manufacturers predictable demand, enabling them to optimize production lines, invest in advanced materials, and offer more competitive pricing. For grid operators, long‑term contracts secure supply continuity and reduce procurement risk, while fostering collaborative innovation. The partnership model also aligns incentives for both parties to improve cable performance, durability, and installation efficiency, ultimately lowering total system costs.

Policy drivers and market forces are converging to accelerate this transformation. The European Union’s net‑zero targets and national renewable mandates are increasing cross‑border power flows, while funding mechanisms such as the European Green Deal incentivize grid modernization. Over the next decade, composite‑core solutions are likely to become standard for both new projects and retrofits, unlocking capacity on existing corridors and supporting the integration of offshore wind, solar farms, and emerging electric‑mobility loads. Stakeholders must, however, address supply chain scaling and standardization to fully realize the technology’s potential.