Key facts
- The European Commission aims to reach a 46% electrification target for the EU economy by 2040.
- This target is intended to reduce annual imported fossil fuel costs by €260 billion.
- Proposed measures include reforms to energy network fees, taxation, and building efficiency.
- A key proposal is to ensure electricity is not taxed higher than gas within member states.
- The EU's electrification rate has been stagnant at 23% over the past decade.
- The plan aims to promote heat pump deployment and simplify permitting for building electrification.
The European Commission has unveiled proposals to double the rate of electrification across the EU's economy by 2040, aiming for 46% of total energy consumption to be met by electricity. This ambitious target is designed to significantly reduce the bloc's dependence on imported fossil fuels, with an estimated annual saving of €260 billion.
The plan addresses key sectors including transport, industry, and buildings, and includes measures to reform energy taxation and fees charged by network operators. A central principle proposed is that electricity should not be taxed at a higher rate than gas, a move intended to incentivize the adoption of cleaner technologies like electric vehicles and heat pumps.
Officials acknowledged that the EU's electrification progress has been slow, stagnating at 23% over the last decade. The Commission plans to promote heat pump installations, improve transparency in costs, simplify permitting, and leverage existing funding to encourage the switch from gas heating.
Industry and expert reactions are mixed. German MEP Christian Ehler welcomed the measures on network charges and flexibility, stating that electricity must become cheaper. However, energy policy expert Thomas Lewis warned that the plan's success hinges on robust measures to phase out fossil fuels and binding post-2030 targets for energy efficiency and renewables. He also noted the risk of new electricity demand being met by fossil fuels if renewable deployment targets are not sufficiently ambitious.
Christian Kjaer of SuperGrid Europe highlighted that tax policies have historically hindered electrification and supported the Commission's proposal to reduce electricity taxes below gas taxes. However, he cautioned that the 46% target would be insufficient if not coupled with clear 2040 targets for renewable energy and efficiency.