More than 70 leading businesses and business organisations across Europe and representing the entire energy value chain, are calling for urgent action to scale up the clean electrification of the EU. This call comes ahead of the release of the European Commission’s Electrification Action Plan.
In a context of geopolitical tensions and rising energy prices, the EU is under pressure to advance its clean energy transition. Leading companies and business organisations across the entire energy value chain issued a call today underlining the urgency of accelerating clean electrification in the EU. They consider this acceleration as a key element to deliver energy security and competitiveness.
Businesses are already developing solutions on the ground to boost the production and demand of electricity. Yet, some obstacles hamper progress. They include high upfront investment costs, lengthy permitting procedures and grid constraints.
The call comes before the publication of the Electrification Action Plan (EAP) which will aim to remove some of these barriers and set a target for electrification.
To unlock electrification at scale, signatories urge EU decision-makers to deliver bold, immediate and effective action, through the following five priorities:
- Strengthen EU industrial strategy for electrification and resilience through a more effective implementation of the Clean Industrial Deal, reflecting the changed geopolitical context and fossil fuel price volatility. Prioritise decarbonised, resilient domestic energy supply chains to enhance EU security and sovereignty.
- Set a clear 2040 electrification target of 50% of final energy use at EU level in the Electrification Action Plan, supported by key performance indicators including on the development of grids, to facilitate consistency within and across Member States.
- Introduce a 2040 energy efficiency goal with accompanying legislation to reduce fossil fuel consumption through increased efficiency, helping align demand growth with electrification and expanding electricity use.
- Ensure stable economic signals and targeted financing for electrification, including prioritising direct electrification in the next Multiannual Financial Framework. Expand innovative financing tools and pilot schemes, preserve the integrity of the EU ETS, and strengthen mechanisms such as PPAs through credit default guarantees.
- Prioritise digitalisation of electricity distribution networks to improve visibility of energy use, enhance flexibility and demand-side response, and enable efficient renewable integration. Strengthened digital systems should support a more resilient and investment-ready energy system, alongside continued need for additional fossil-free electricity generation capacity.