Eurelectric Electrification Action Plan

Introduction

Decarbonisation through electrification - why we need an EU Electrification Action Plan now.

Electricity makes up only 23% of all the energy consumed in Europe. This means that while we are working hard to decarbonise electricity, large parts of the economy are still running on fossil fuels. If we are to have any hope of achieving our climate and energy policy, we need to ramp up electrification as quickly as possible. This electrification choice is also a no regret option for energy efficiency. Deploying heat pumps, for instance, could reduce energy demand by two-thirds. All modelling shows the rate of electrification will need to reach around 50% up to 70% by 2050 for Europe to reach climate neutrality, according to our Decarbonisation Speedways study. In the medium term, to achieve our REpowerEU ambitions, we need to already reach 35% by 2030. Europe must set both the right milestones and a clear plan to deliver that trajectory.

Therefore, we ask policymakers to:

• Reinforce governance with an EU Electrification Action Plan - Publish an Electrification Action Plan (EAP) the first 100 days of the coming mandate with the building blocks outlined in this file to guide policy makers. This should set an indicative target of 35% electrification of final energy use across the EU by 2030. In addition, an electrification indicator in the national energy and climate plans (NECPs) to monitor and deliver progress should be introduced.
• Showcase the true value of electricity - Continue efforts to relieve the electricity price of taxes and levies to create favourable economic conditions for consumers to switch from more carbon-intensive energy carriers.
• Increase awareness of electricity’s cost saving potential - Acknowledge that our exposure to volatile fossil fuel imports from external sources is coming with a massive yet avoidable cost: the positive impact of large-scale electrification with clean domestic power generation on security of supply should be duly considered as a saving in the mid to long term, rather than just an expenditure.

This EAP serves therefore as a guidance for dedicated policy proposals to let electrification play its required role in the energy transition and guide EU Member States in successfully implementing provisions from the European Green Deal and the REpowerEU legislation with decarbonisation and electrification at its core.

The EAP is also not an end in itself: further analysis is needed to better understand the effects of an increased share of electricity in certain sectors of the economy with due recognition of sector specific differences and starting points in decarbonisation of the various EU Member States.