Key facts
- The European Commission aims for 46% of the EU's total energy to come from electricity by 2040.
- This target represents a doubling of the current electrification rate.
- The plan seeks to cut oil demand by 40% and gas demand by 70%.
- The final plan sets an "indicative target" instead of a legally binding one.
- The plan targets industry, transport, and buildings, with buildings accounting for half of EU gas consumption.
- Measures include accelerating heat pump deployment and expanding EV charging infrastructure.
The European Commission has proposed an "indicative target" to increase the share of electricity in the EU's total energy consumption to 46 percent by 2040, effectively doubling the current rate. This Electrification Action Plan, unveiled by EU energy chief Dan Jørgensen, aims to reduce the bloc's dependence on imported oil and gas, thereby lowering energy costs and enhancing energy security.
The plan targets key sectors including industry, transport, and buildings, with the latter being a significant consumer of natural gas. Measures proposed include accelerating the deployment of heat pumps, expanding electric vehicle charging infrastructure, and supporting the electrification of industrial processes. The Commission estimates that achieving this electrification goal could lead to a 40 percent reduction in oil demand and a 70 percent cut in gas demand.
Despite the ambitious goal, the Commission has opted against setting a legally binding target in the final plan, a departure from earlier drafts. Instead, the 46 percent target is presented as indicative, with a commitment to assess its binding nature as part of the post-2030 Energy Union package. This approach acknowledges the challenges in ensuring the target's fulfillment, particularly given that over half of the EU's energy consumption currently relies on imported fossil fuels.
Key barriers identified by the Commission include the significant price gap between electricity and gas, limited access to necessary infrastructure, and the upfront costs associated with electrification technologies. The plan includes measures to address the electricity-to-gas price disparity and encourages more efficient electricity grid management through adapted network charges and principles for national regulators. The initiative also calls on member states to avoid taxing electricity more heavily than gas, recognizing taxation as a barrier to broader electrification.