The European Commission has introduced a new Electrification Action Plan to boost the electrification of the European economy, cutting reliance on imported fossil fuels, and paving the way for the Continent's long-term climate and energy security objectives. It has been unveiled alongside the Commission's review of the EU Emissions Trading System (ETS), and includes measures to unlock the potential for electrification, as well as making electricity cheaper for businesses and households.

The Commission will review an indicative target for doubling electricity's share of the EU's final energy consumption (from around 23% to 46%) by 2040, which has not significantly changed over the last decade. The proposed target aims to increase energy independence, competitiveness of industry and speed up decarbonisation by increasing the electrification of sectors such as buildings, transport and industry.

Decreasing Dependence on Imported Fossil Fuels

The Commission says Europe has been repeatedly subjected to geopolitical shocks and price instability in energy markets because it continues to rely on fossil fuels for its energy needs. More than €50 billion on extra fossil fuel imports has been spent by the EU since the conflict began in the Middle East today, it said.

The Commission believes that the proposed 46% electrification target by 2040 will save the EU roughly €260 billion each year on fossil fuel imports. The bloc seeks to enhance the security of electricity supply by boosting the share of electricity produced locally, including renewable sources, as well as to reduce vulnerability to electricity price shocks.

Helping to make electricity more affordable

One of the key goals of the Electrification Action Plan is to reduce the price disparity between electricity and fossil fuels, especially natural gas. For the Commission, a significant ramp-up in electrification across the economy requires the electricity option to be more competitive for consumers and businesses.

To do this, the plan calls for changes to electricity network charges, which make up about 25% of the bills for households. The Commission plans to propose a bill that will provide more flexibility with the cost of electricity transmission and distribution, which will help to make electricity systems more efficient and lower the cost of electricity service.

The proposal will also enable the EU Member States to lower taxes and grid charges for certain electricity consumers such as energy-intensive industry or energy communities. It would also reduce electricity taxes relative to natural gas, thereby making electricity a more competitive energy, while helping to create a more predictable energy price for consumers.

Collaborate with the community to help them use electricity more efficiently and sustainably.

In addition to the price reforms, the Commission's proposals would promote more intelligent use of electricity by expanding the use of digital energy technology.

The strategy involves initiatives for the promotion of smart meters, modernisation of electrical network and optimisation of data exchange systems. The projects aim to improve the ability of both consumers and utilities to control their electricity use and to use more flexible and efficient energy networks which can integrate growing quantities of renewable electricity.

A smarter electricity system and new business models will help to drive the process of electrification and continue to ensure reliable energy supplies, the Commission is convinced.

Increasing the electrification of major industries.Increasing the electrification of key sectors.

The Electrification Action Plan also includes steps to minimize the costs of adopting electric technologies in buildings, transport and industry.

The Commission has targeted doubled heat pump installations by 2030 in the buildings sector, compared to 2025. The more heat pumps are deployed, the less fossil fuels will be used for heating, and more efficiently.

The plan seeks to speed the deployment of charging stations for electric vehicles to scale up transportation options, including for heavy-duty vehicles. A large-scale charging infrastructure is considered to be a key enabler for the EU's e-freight market growth.

In industry, the Commission will prioritize the most promising technologies and companies that are commercially available and can be quickly implemented for the purposes of electrification. The goal is to reduce the expenses of investing and to promote the adoption of electric processes over fossil-fuel ones, where possible.

New Alliance and Skills Development Initiatives

The Commission announced the launch of a new Electrification Action Plan Alliance to support the implementation of the strategy, which will include EU institutions, national governments, businesses, electricity suppliers, storage operators, clean technology manufacturers.

The alliance will contribute to further speeding up commercialization of electrification technologies and to making conditions more favorable for the future widespread implementation of clean energy solutions in Europe.

The Commission also highlighted a number of workforce development initiatives, recognising the need for a bigger skilled workforce to facilitate the transition. This includes measures to facilitate the portability of qualifications and professional skills across the EU member states for a more attractive recruitment of electricians and clean technology installers.

Other proposals involve offering incentives to manufacturers to train under a new Clean Heat Market Mechanism and a proposed Construction Services Act to streamline the certification of specialist in energy-efficient construction and installation.

Commission Highlights Long-Term Vision

Commenting on the launch of the Electrification Action Plan, Commissioner for Energy and Housing Dan Jorgensen said:

“With this plan, we are putting Europe on a course to become the world’s first electro-continent. The message we are sending today is very clear: choose electricity over fossil fuels. Choose green, home-grown, cheaper electrons over black, imported, expensive molecules. Choose independence over vulnerability. An accelerated clean energy transition coupled with electrification is the answer to Europe’s challenges in terms of security, competitiveness and decarbonisation.”