Electrification

In 2025, renewables accounted for 49.9% of the gross electricity consumed in the EU, up from 15.9% in 2004, according to Eurostat.

Despite this, electricity represents only 23% of final energy consumption. This must grow to meet the EU’s climate targets, reinforce efficiency by integrating the energy system and bringing the benefits of clean energy to consumers.

Electrification Action Plan

The Clean Industrial Deal and the Affordable Energy Action Plan introduced a key performance indicator on the share of electricity in final energy consumption, setting 32% by 2030 as reference, and announced the Electrification Action Plan.

It was published on 17 July 2026 and aims at making Europe the first electro-powered continent, with a stronger carbon market to support EU's industry in the clean transition and electrification.

Its indicative electrification target of 46% by 2040 will be assessed as part of the post-2030 Energy Union package. Reaching this goal could cut the EU’s fossil fuel import bill by €260 billion per year by 2040.

Electrification benefits and barriers

Electrification comes with substantial benefits for the EU economy, businesses and citizens, in terms of lower energy prices and competitiveness, stronger energy security and resilience.

driving a battery-electric vehicle can save up to 78%, compared to an equivalent fossil-fuelled car
switching from gas boilers to heat pumps cuts the average EU household’s heating bill by up to 60%, while providing important co-benefits for climate adaptation

However, barriers to widespread adoption remain. Electricity often costs 3 times more than gas and grid connections can take years. Too many innovative technologies never reach commercial scale, and companies have too little incentive to make the switch from fossil fuels to electricity.

The Electrification Action Plan focus on reducing the price gap between electricity and fossil energy costs and on incentivising the uptake of cleaner, electricity-based technologies such as heat pumps, electric vehicles and batteries, among others, across Europe.

Published together with the Electrification Action Plan on 17 July 2026, a Commission proposal to future-proof electricity bills in the EU (COM/2026/600) aims to empower EU countries to reduce network charges for certain consumer groups and taxes for energy-intensive businesses. It also spurs faster deployment of smart meters, which will make it easier for consumers to save on their energy bills and seeks to make sure that electricity is not taxed more heavily than gas.

Process and preparation

To support the preparation of the action plan, the Commission launched a call for evidence and a public consultation from 28 August until 9 October and 20 November 2025 respectively. The consultation aimed to collect feedback on the role of electrification in the transport sector, industry and buildings, on key barriers and on policy areas where action is needed to accelerate the transition. In addition, the Commission organised a stakeholder event on the Electrification Action Plan and the Heating and Cooling Strategy in November 2025.

Electrify Now

The European Commission, together with the COP30 Presidency (Brazil), the COP31 Presidency (Türkiye and Australia) and the incoming COP32 Ethiopian Presidency, Canada, the Philippines, the Republic of Korea, the United Kingdom, the International Energy Agency and the International Renewable Energy Agency, launched the Electrify Now initiative on 23 June 2026 at the London Climate Action Week.

Electrify Now is a global platform aiming to drive clean electrification to the top of the international agenda — not only as a climate ask, but as an energy security imperative, a competitiveness strategy, and an economic opportunity

Supported by the International Energy agency (IEA) and the International Renewable Energy Agency (IRENA), the platform is open to participants from governments, financial institutions, industry representatives and other partners.

More about Electrify Now

Electrification of industry

While the EU’s industry sector has achieved major energy efficiency improvements, it represents almost a quarter of the EU’s energy demand and the sector’s shift from fossil fuels to electricity remains slow. With the right conditions, industrial electrification represents an opportunity for European industry to modernise, further increase its efficiency and productivity and reinforce its global competitiveness.

Industrial applications in sectors such as food and beverages, pulp and paper, and textiles are well suited for electrification already. Commercially available technologies, including industrial heat pumps and electric boilers, can provide process heat up to 400–500°C, enabling these applications to be electrified today.

In July 2026, the Commission published a study on pathways and policies for accelerating electrification and use of renewables in industry. It identifies key barriers including high electricity costs, grid constraints, investment needs, competitiveness concerns, and policy uncertainty. The analysis highlights substantial technical potential for industrial electrification, exceeding 2 000 TWh by 2040, but finds that policy ambition and implementation remain uneven across EU countries.

Electrification of transport

Transport is responsible for around 25% of total greenhouse gas emissions and about 90 - 95% of the energy consumed in the transport sector comes from fossil fuels.

Road transport represents by far the largest share of this consumption, followed by aviation and maritime.

The electrification of transport is a good example of the potential for energy system integration. Electric vehicles (EVs) connect the transport and power sectors, but also buildings, where the charging points are often located.

In particular, smart charging, allowing EVs to charge at the best time, not only helps reduce grid congestion, but also contributes to the wider use of renewable electricity and lower charging costs for consumers. Indeed, charging can be done at whatever time of day or night electricity prices are lowest or when renewable production is abundant.

Bi-directional charging allows EVs to act as distributed energy storage, feeding power back into the grid during peak demand or low renewable production. This enhances grid resilience, supports decarbonisation, and offers cost-saving opportunities for EV owners, accelerating the clean energy transition and serving as an example of the flexibility required by an integrated energy system.

The electrification of ports also has an important role to play on the path to decarbonisation. In September 2024, the Commission published a report 'Port electricity commercial model (project pilot)' with the primary objective of offering pivotal insights and guidance to decarbonise European ports.