Only 21% of Europe's economy is electrified, a new report on the continent's energy security and competitiveness shows. This share has not changed in the past 10 years and remains around 10% lower than the level in China, where electrification is progressing much faster.
The document, entitled “Energy Security and Competitiveness of Europe - Accelerating Electrification“, warns that without accelerated action, the continent risks falling behind in the transition to clean energy and losing its competitive position in the global market.
At the same time, electricity costs in the EU remain among the highest in the world – 0.27 EUR/kWh, compared to 0.15 EUR in the US and 0.08 EUR in China. The daily energy costs of a European are thus three times higher than those of Chinese households.
If Europe accelerates the pace of electrification, it could save up to 250 billion EUR per year by 2040. Although greenhouse gas emissions in the EU have already decreased by 37% compared to 1990, dependence on fossil fuels continues to keep prices high and is delaying the achievement of decarbonization goals.
The differences between Member States are significant. Northern Europe is making rapid progress in electrification of transport and buildings, while Southern Europe is ahead in this indicator in the residential sector. In Bulgaria, the electrification of buildings is 52%, and in industry – 32%, which places the country among the leaders in the region.
The report also outlines 4 priorities for politicians and businesses:
removing fossil fuel subsidies and reforming energy taxes; facilitating access to investment and channeling funds from emissions trading to electrification projects; mandatory electrification of new buildings and industrial processes, as well as rapid deployment of heat pumps and electric cars; supporting European innovation and manufacturing through sustainable public procurement and accelerated standardization.„The study shows that electrification is essential not only to achieve our climate goals, but also to stimulate economic growth, energy independence and industrial competitiveness. Europe urgently needs to overcome the electrification bottleneck. The technologies are already there, ready to be deployed. Now it is up to policies to create the incentives and businesses to drive the process to unlock the economic and environmental benefits we need today,” said Laurent Bataille, Executive Vice President for Europe at a leading company in the digital transformation of energy management and automation.
According to experts, accelerated electrification is not just an environmental measure, but a strategic necessity for Europe’s future energy security and economic sustainability.