Electrification & Renewable Hydrogen

Electrification is the cornerstone of Europe’s path to decarbonisation. It is not just an environmental imperative – it is an economic one. Yet, despite its strategic importance, electricity’s share in final EU energy consumption has stagnated at around 23% for over a decade. We should reach at least 60% electrification in the EU by 2050 to achieve climate neutrality.

Reaching climate-neutrality will require decarbonising a number of sectors that today rely on fossil fuels. In the transport sector, fossil fuels accounted for 93.5% of energy use in 2022; 90 million EU households continue to heat their homes with a gas or oil boiler; in industry, more than half of the energy consumption comes from fossil fuels including coal, natural gas or fossil-based hydrogen.

Direct and indirect electrification is the most cost-efficient decarbonisation path that simultaneously answers the challenging politics of energy security, industrial competitiveness and social fairness by reducing reliance on countries of divergent values and geopolitical interests.

32% is the share of electricity in final energy consumption that the European Commission has set as a KPI for 2030

Heat pumps and electric vehicles are two to four times more energy-efficient than gas boilers and diesel or ICE cars

The Electrification & Renewable Hydrogen Workstream

SolarPower Europe’s Electrification & Renewable Hydrogen Workstream aims contribute to the Clean Industrial Deal objective of a 32% electrification rate by 2030 in the EU, by identifying the most promising business models for smart electrification and accelerating cost reductions in electrified production. In close cooperation with high-level industrial actors from across the EU, the Workstream develops recommendations from the solar industry to promote electrification and renewable hydrogen in key European policy files.

In particular:

Developing market and policy intelligence on electrification technologies business models.
Ensuring a smooth implementation of the EU renewable certification rules and sectoral targets.
Promoting electrification and renewable hydrogen in key upcoming European policy files, especially in shaping the post-2030 energy framework.
Contributing to SolarPower Europe’s participation to the Electrification Alliance, joining forces with 9 other associations to promote electricity as the central energy carrier for a competitive, efficient, and fully decarbonised European economy.
Supporting SolarPower Europe’s contribution to the Renewable Hydrogen Coalition, a policy initiative jointly established by SolarPower Europe, Wind Europe, and Breakthrough Energy with the aim of making Europe a world leader in renewable hydrogen.

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The Electrification & Renewable Hydrogen accomplishments

→ The Clean Industrial Deal set an electrification KPI of 32% by 2030 → The European Commission dedicated a targeted EU auction for direct electrification in the Industrial Decarbonisation Bank → Ursula von der Leyen in her state of the Union mentioned that “the future is electric”

Interview with Mercè Labordena, Chair of Workstream Chair of the Electrification & Renewable Hydrogen Workstream

Renewable hydrogen, produced through electrolysis powered by renewable energy sources such as solar, is essential for replacing fossil fuels in hard-to-decarbonise sectors, including heavy industry, transport, and chemicals. Electrification complements this by promoting the direct use of renewable electricity in heating, transport, and industrial processes.

Read the interview