The Commission has unveiled a new electrification action plan aimed at speeding up the shift from fossil fuels to electricity in Europe across industry, transport and buildings. The goal is tomake Europe the world's first "electro-powered" continentby aiming to increase electrification from today's 23% of energy use to 46% by 2040. By reaching this goal, the EU could save €260 billion per year in fossil fuel imports.

The benefits of moving to electrification include

However, several challenges still need to be addressed. Electricity often costs three times more than gas. Grid connections can take years. Too many innovative technologies never reach commercial scale. Companies have too little incentive to make the switch from fossil fuels to electricity.

The new plan address all of these challenges. It does so by proposing a series of measures that willhelp reduce the price gap between electricity and fossil energy costs and by incentivising the uptake of cleaner, electricity-based technologiessuch as heat pumps, electric vehicles and batteries, among others. Measures in the plan include

On the same day the Commission presented this plan, it also announced a review of the EU ETS, the EU’s main decarbonisation policy. A changing geopolitical and economic context means that also this policy requires modernising. This review, along with the action plan are part of the EU’s wider efforts to boost Europe’s competitiveness, decarbonisation and independence.

Press release - Commission boosts Europe's competitiveness, decarbonisation and independence with Electrification Action Plan and ETS review

Q&A on the electrification action plan

Factsheet on EU Electrification Action Plan and Network charges