The European Council convenes this Thursday with competitiveness and climate action high on the agenda. Ahead of the meeting, the European electricity industry has reiterated that electrification is the most cost-effective and secure path toward achieving Europe’s climate neutrality goals — while boosting industrial competitiveness and energy resilience.
Building on a recent letter to Energy Ministers, Eurelectric has now published a comprehensive position paper detailing five key recommendations for a successful Electrification Action Plan. The paper also deep dives into two crucial tools that can help deliver those goals: the Industrial Decarbonisation Bank and Tripartite Agreements for affordable electrification.
Industrial Decarbonisation Bank – scaling up beyond the pilot
To reach the EU’s 50% electrification rate target by 2040 and reduce overall system costs, Eurelectric calls for at least 75% of the €100 billion Industrial Decarbonisation Bank budget to prioritise industrial electrification.
A position paper outlines the three guiding principles for how funds should be deployed:
- Follow a mitigation hierarchy: prioritise proven, cost-effective technologies that avoid and reduce emissions first, cutting fossil fuel use through electrification.
- Simplify and accelerate access: ensure transparent, efficient application procedures to fast-track deployment
- Guarantee long-term certainty: secure credible, predictable budgets and clear investment signals to unlock industrial action.
A well-capitalised and effectively managed Decarbonisation Bank can become a cornerstone for Europe’s clean industrial transformation, enabling industries to transition competitively while safeguarding jobs and innovation.
Tripartite contracts: a cooperation model for affordable electrification
Eurelectric has welcomed the European Commission’s launch of the first two “Tripartite Contracts for Affordable Energy” – focused on offshore wind and grids, and storage and flexibility. However, it proposes renaming them “Tripartite Agreements” to reflect their cooperative rather than contractual nature.
This “virtuous triangle” – connecting governments, industry, and the power sector – should expand to include a third framework dedicated to accelerating electrification across all sectors.
For the initiatives already underway, Eurelectric recommends to:
- Preserve market integrity: instead of intervening in electricity market price formation, they should focus on regulatory clarity and market-oriented support measures.
- Engage all key players – public sector at all levels, end consumers across sectors (industry, transport, heating and others) and the electricity supply side.
- Build on existing frameworks and optimise efforts: align with NECPs, the Industrial Decarbonisation Bank, Clean Industrial Deal frameworks, EIB guarantees and EU funding streams for maximum impact
By combining long-term investment tools with inclusive cooperation models, Eurelectric believes the EU can unlock affordable, reliable and sustainable electrification – the foundation for Europe’s clean industrial future.