Electrification Action Plan
Introduction
Decarbonization through electrification is crucial for achieving climate and energy policy goals. Currently, electricity accounts for only 23% of total energy consumption in Europe. To reach climate neutrality, the rate of electrification must increase significantly, aiming for 35% by 2030 and up to 61% by 2050. This action plan proposes reinforcing governance with an EU Electrification Action Plan, showcasing the economic benefits of electricity, and increasing awareness of its cost-saving potential.
Electrification Trends and Problem Definition
- Overall Trends: The electrification rate in the EU has stagnated around 23% over the past decade, with projections showing it reaching 35% by 2030 and 61% by 2050.
- Sectoral Trends: All end-use sectors in the EU exhibit a flat trend in electrification rates. Industry shows growing electrification, while commercial/public buildings experience a decreasing trend in Southern Europe.
- National Trends: Despite different starting points, electrification rates among EU countries show similar patterns, with notable differences in regions like Eastern Europe concerning heating.
Barriers to Electrification
- General Barriers: Consumer choices are often not economically evident due to incoherent and insufficient incentives, and ongoing energy taxation policies favor gas over electricity.
- Case Studies:
- Household Electrification: Full electrification of a household (based on oil for private transport and gas for heating) can result in significant monthly savings, especially under high gas prices. However, the economic benefit is often not immediately apparent to consumers.
- Combined Electrification Technologies: Homeowners with solar photovoltaic systems and heat pumps in Germany, Spain, or Italy can decrease their energy expenses by up to 84%. These solutions provide positive monetary savings and enhance energy security.
- Electrification Solutions: Case studies demonstrate the effectiveness of various electrification technologies, including heat pumps, e-mobility, battery storage, and solar PV, in reducing energy costs and enhancing energy security.
Conclusion
To accelerate the transition to a low-carbon economy, the EU needs a comprehensive Electrification Action Plan. This plan should set indicative targets, introduce an electrification indicator in NECPs, and continue efforts to make electricity more economically viable for consumers. By addressing these barriers and promoting electrification, Europe can achieve its climate and energy goals more effectively.