Net-Zero Industry Act: Electrification is a key enabler of industrial competitiveness

KEY MESSAGES

• We welcome the inclusion of clean and renewable electricity generation technologies among the lists of (strategic) net-zero technologies, considering the massive scale-up needed to deliver on the 2030 energy and climate ambitions. In view of increased needs for firm and flexible generation capacities to complement over 600 GW of incoming variable renewables, we encourage policymakers to ensure equal treatment of carbon-free sources of generation like nuclear and hydropower, which have a technology readiness above eight.
• A coordinated approach for infrastructure deployment is essential. In particular, to ensure a swift connection of net-zero manufacturing facilities and their access to increasingly decarbonised electricity, Eurelectric calls for accelerated grid connection procedures (i.e. updates and reinforcements) and anticipatory grid investments.
• Securing robust supply chains of raw materials and key components of net-zero and digital technologies is key to prevent future vulnerabilities of the green and digital transition.
• NZIA’s ambitions must be backed up by all possible means of financing, whether private or public. All technologies recognised in the NZIA must therefore be eligible for European funding.
• While introducing non-price criteria in renewable energy auctions can bring several key benefits, it is crucial to carefully design them to avoid hindering electrification. This can be done by embedding the following principles:
  
  i. Ensure renewable energy auctions are predictable in terms of visibility and indexation;
  
  ii. Consider technology-specific differences in setting non-price criteria, prequalification requirements, as well as the cost-based derogations;
  
  iii. Consider the principles of sustainability and resilience separately;
  
  iv. Devise direct measures to support robust value chains and avoid further delays and disproportionate cost increases for RES electrification;
  
  v. Provide early, clear, pragmatic, efficient non-price criteria, possibly in the form of pre-qualification;
  
  vi. Establish a transition period.