Electricity makes up just 23% of Europe’s final energy consumption. Even more concerning: this number has barely changed in the past decade. This means that most of our economy still runs on fossil fuels, despite the urgent need to decarbonise and reduce our energy dependency.
Against this backdrop, in her September 2024 mission letter to Energy and Housing Commissioner Dan Jørgensen, Ursula von der Leyen announced that the European Commission was to put forward a dedicated Electrification Action Plan (EAP) “to ensure that Europe’s industrial transition towards net zero is powered by an energy system with homegrown, clean electricity.”
Eurelectric – both independently and as part of the Electrification Alliance – has long advocated for such a plan. In March 2024, we published our own Electrification Action Plan, identifying the main bottlenecks and laying out concrete proposals to reignite progress. This was followed by the Electrification Alliance’s joint recommendations, putting forward 31 proposed actions across nine categories, backed by three overarching priorities.
Now, as ministers and commissioners are set to meet next Monday for the Energy council to talk, amongst other things, about the EAP, Eurelectric sent a letter urging them again to raise their sights on electrification and bringing forth five key priorities for an effective and clean transition.
Today we unpack: what do we know about the Electrification Action Plan and what did Eurelectric ask for in its new letter?
What do we know about the Electrification Action Plan?
The Electrification Action Plan (EAP) is an anticipated initiative from the European Commission intended to set clear direction for Europe’s shift to clean, direct, electrification, across transport, buildings and industry. While the official proposal is still pending, Commission President Ursula von der Leyen signaled strong political support in her 2025 State of the Union speech, calling electricity “the future” and committing to faster grid rollout and sectoral integration.
“No matter what, the future is electric. And Europe will be part of it.”
The content of the proposal is still tentative. But we already know that the Electrification Action Plan will become a central tool to strengthen energy security, accelerate decarbonisation and improve cost-competitiveness for European industry. The Plan is expected to build on existing initiatives like the Affordable Energy Action Plan, the Clean Industrial Deal and the forthcoming Grid Package.
What is in the letter?
Given the importance of the EAP and the foundation it lays for Europe’s decarbonisation journey, Eurelectric sent a letter this week to EU Energy Ministers with five concrete proposals. These build on the foundations of our 2024 Electrification Action Plan and reflect barriers we’ve long identified.
Five priorities for us are:
- First, we call for the institutionalisation of the Decarbonisation Bank as a permanent financing instrument. The pilot auction scheme under the current EU framework has shown early signs of success. Now it should be scaled up with an increased annual budget and stable, predictable conditions to provide accessible capital to electrification projects. Importantly, the scheme should remain efficient and pragmatic. Meaning it should avoid complex carbon accounting requirements when electricity is chosen as the energy vector.
- Second, we propose the designation of Electrification Acceleration Areas. Drawing inspiration from the Renewables Acceleration Areas under the revised Renewable Energy Directive, these areas would offer simplified permitting and faster grid connection procedures for electrification projects. This approach would enable the clustering of new industrial loads, such as electrified manufacturing or processing hubs, in zones that have grid capacity, allowing for a more strategic and efficient use of infrastructure.
- Third, we recommend enabling social leasing schemes for electrification purposes across the EU. These schemes would allow for broader and fairer access to key technologies like electric vehicles and heat pumps, with tailored financial conditions and guarantees. While the implementation of these would sit with national or local authorities, EU-level action could help drive harmonisation and scale. An example could be offering financial guarantees or issuing common guidelines.
- Fourth, we urge the integration of electrification monitoring and forecasts into the Governance Regulation. This would require Member States to include a dedicated electrification section in their National Energy and Climate Plans (NECPs), outlining expected electricity demand per sector and detailing measures to accelerate uptake. While we do not advocate for binding national electrification targets, introducing harmonised reporting would provide transparency, guide anticipatory investments and help ensure accountability.
- Finally, we advocate for the development of national information hubs to improve public understanding and uptake of electrification solutions. These hubs, built on existing best practices such as publicly funded, impartial consumer advice centres, would offer independent legal, technical and financial guidance to citizens and small businesses. They would help address one of the most persistent obstacles to electrification: the information and awareness gap.
These five measures are not only concrete and actionable, but they are also deeply aligned with the EU’s broader goals on competitiveness, decarbonisation, and energy resilience. We believe they can help push the needle on electrification and make the upcoming Action Plan a catalyst for change.
Too long didn’t read? Our head of Energy Policy, Climate & Sustainability Paul Wilczek explained it here in a short video:
What now?
Energy ministers will meet on Monday, and while the Electrification Action Plan will not yet be tabled, the discussion will offer an early indication of political appetite and direction. As legislative work begins to take shape in the months ahead, Eurelectric will continue to engage with policymakers to ensure that electrification is treated not as a side chapter of the Green Deal, but as its central delivery tool.
We will follow the Council exchange closely and stand ready to contribute to making the upcoming Action Plan as impactful, pragmatic and forward-looking as Europe needs it to be.
This blog post was originally published as part of Eurelectric’s LinkedIn Friday Features. Subscribe here to stay updated and never miss an edition.
Disclaimer: This article is for communication purposes only and may not reflect Eurelectric positions. Any positions taken in this article shall not be attributable to Eurelectric’s official positioning. Official Eurelectric positions are reflected only in position papers published here.