The European Commission has set Europe’s first ever electrification target, setting an ambition to increase electricity consumption to 46% of all energy use by 2040—double the current consumption rate.
The Electrification Action Plan, unveiled by European Commissioner for energy and housing Dan Jørgensen on July 17, seeks to improve European energy security, reduce reliance on imported oil and gas, and lower energy costs for households and industry.
For decades, Europe has imported more than half of the energy that powers its economy. That dependence has left businesses exposed to geopolitical shocks, volatile prices, and supply disruptions. Each year, Europe spends hundreds of billions of euros importing fossil fuels. The Commission estimates that greater electrification could reduce those imports by as much as €260 billion annually by 2040. Imagine what that could mean for Europe’s economy.
Instead of exporting wealth to buy fuel, Europe has the opportunity to invest those resources in its own infrastructure, industries, technologies, and workforce. Electrification is not simply about reducing emissions, it also represents an opportunity for Europe to improve its economic resilience and long-term competitiveness.
