Electrifying Europe with an ambitious Electrification Action Plan

Proper enforcement of the adopted energy framework will lower the electricity-to-gas price ratio across Member States, enable flexibility markets, accelerate infrastructure roll-out, and strengthen investor confidence.

Member States should include dedicated electrification sections and indicators in their National Energy and Climate Plans (NECPs), with clear milestones, demand forecasts, and measures for smart electrification.

The Innovation Fund pilot auction on process heat decarbonisation should evolve into a regular financing tool. EU funding instruments should prioritise deployment of smart and industrial electrification, workforce development, and infrastructure modernisation. Fast approval of instruments submitted under the Climate, Energy and Environmental Aid Guidelines (CEEAG) is also essential to accelerate project approvals.

Creating and mapping industrial clusters would accelerate the deployment of renewables production and related grid infrastructure.

To overcome high upfront costs for consumers, the EU should expand social leasing schemes for electric vehicles, heat pumps, and solar PV with storage. Coordinated EU guidance and funding guarantees could scale these programmes across Member States.

Consumers and businesses face complex choices and information gaps about electrification technologies and available incentives. The EU should support one-stopshop models and streamline information platforms.

The revised Energy Taxation Directive should be adopted. Fossil fuel subsidies must be phased out, VAT reduced for electrification products, and levies limited to grid-related costs.

The current PEF penalises electrification by overstating primary energy use. The forthcoming review in 2026 must align the PEF methodology and value with the EU’s decarbonisation objectives, turning it into an incentive for electrification rather than a barrier. It should also require Member States to regularly review and update their national methodologies against the EU’s.

A dedicated Installer Action should fund training, recruitment, and vocational education through the upcoming European Strategy for VET, ensuring Member States assess and meet their workforce needs as part of NECP revisions.

Maintaining the CO2 standards for cars and trucks is crucial for achieving the EU’s electrification goals. Rolling out electric mobility and corresponding infrastructure including V2G technology, and depot charging for trucks can unlock up to 9% of Europe’s annual power supply by 2040. The Action Plan should build on the expected Regulation on Greening Corporate Fleets to incentivise the deployment of large EV fleets.

Smart and bidirectional charging should be rapidly deployed through supportive regulation and tax incentives. Similarly, unlocking and rewarding heat pump flexibility can reduce energy bills for end-users as well as overall costs for the energy system.