KEY MESSAGES
- Electrification can ignite a new industrial era – securing Europe’s competitive edge with clean, secure and affordable electricity. Our latest report “The new industrial age: Tailored electrification pathways for Europe’s industrial competitiveness”1, unveils how electrification – with the right measures supporting its key manufacturing sectors – can enhance Europe’s industrial competitiveness.
- Electrifying industry is the solution to many of the challenges that Europe is facing today:
- Decarbonisation: With 20 to 25% of global CO2 emissions coming from industrial activities, industrial electrification can support the EU’s path to net-zero;
- Independence: It offers a path away from imported fossil fuels that have exposed Europe’s industry to volatile markets and high prices, hampering its productivity;
- Competitiveness: clean electricity already presents a strong and relevant economic case for industry.
- Electricity is already competitive in the fast-growing clean tech industry and for industries involving low-temperature heat processes, thanks to significant energy efficiency gains. Yet, in industrial sectors that require both high temperatures and large volumes of energy -such as chemicals, cement, glass, and iron and steel – further innovation is essential to significantly lower both capital and operating expenditures, and to make electrification a truly competitive option.
- Considering the diverse industrial base, there is “no one size fits all” solution. To achieve these objectives we recommend2:
- Implementing agreed policies, removing fossil subsidies and providing access to adequate information on electrification ;
- Providing financial support for CAPEX and OPEX costs of electrified solutions
- Unlocking the potential of all flexibility sources on a level playing field
- Promoting tailor-made industrial strategies to support innovation and competitiveness
- Upgrading grid infrastructure to support industrial electrification and accelerate permitting