ClimateEnergyEnvironmentIndustry

Strengthening the Energy Security of the European Union through the Electrification of Infrastructures and Key Sectors

By Nicolás González Casares, MEP (S&D Group – Spain)

Ensuring reliable and sustainable energy supply for homes, industries, and transportation is central to Europe’s economic stability and security. Since late 2021, Europe’s heavy dependence on fossil fuels has exposed vulnerabilities that enemies of EU can exploit and is recognized as a primary driver of climate change. Reducing reliance on fossil fuels, particularly from Russian sources (including nuclear from Russia), has become essential to enhance Europe’s strategic autonomy and environmental resilience.

The electrification of the economy—replacing fossil-fuel-based technologies with electricity generated from clean, renewable sources—is now a core pillar of the European Union’s climate and economic strategy.

According to a Draghi report, decarbonization through electrification and renewable energy provides a “unique opportunity for economic growth and industrial strengthening” by reducing energy costs and enhancing competitiveness. Currently, solar and wind energy are the most cost-effective sources of new electricity generation in many regions, leading to significant reductions in long-term energy costs for both industries and households. The European Commission estimates that policies aimed at accelerating the adoption of renewable energy and improving energy efficiency could result in annual savings of up to €162 billion by 2030. Sustainable renewable energy sources are essential and their full potential can only be harnessed through electrification.

While Europe’s electricity system is rapidly decarbonizing— approximately half of the EU’s electricity came from renewable sources in the first half of 2024—electricity currently accounts for only 23% of the EU’s total energy demand.

By contrast, China, meeting around 30% of its demand electrically, demonstrates the strategic importance of electrification, reflected in reduced oil demand projections due, among others, to rapid transport electrification. Electrification also offers a way to achieve more with less energy. Electric motors are highly efficient and have been quickly integrated into industrial processes. With advancements in battery technology, electric vehicles (EVs) are becoming a well-established option for road transport, sector relying on fossil fuels for 93% of its energy needs. The same principle applies to heating and cooling, where heat pumps can achieve efficiencies exceeding 300%. Understanding the benefits of electrification is straightforward; however, accelerating its adoption requires supportive policy frameworks, investment in grids infrastructure and a level playing field among various energy carriers  and sources. This can be achieved through genuine technological neutrality. For instance, the Directive incorporates multipliers for electricity used in transportation, emphasizing its superior efficiency—EVs are two to three times more energy efficient than traditional internal combustion engine vehicles.

During negotiations, some groups sought to eliminate these multipliers arguing a false technological neutrality. Thankfully, during the negotiations we managed to retain these multipliers. Without them, Member States would find it easier to meet renewable transport targets using less efficient renewable fuels, which would undermine the clear efficiency benefits of electrification.

Electrifying public and private transport also offers clear advantages in reducing urban pollution and improving air quality. The EU’s regulation mandating zero-emission vehicles by 2035 exemplifies real technology-neutral policy accelerating electric vehicle (EV) adoption as the most effective, efficient, and sustainable road transport alternative. Industry can greatly enhance its competitiveness by accelerating electrification, but this requires affordable electricity prices. However, as Draghi indicates, due to the current marginal price setting mechanism on the electricity market, natural gas was the price more than 60% of the time, despite making up only 20% share of the EU’s electricity mix. It is necessary to de-couple the price of renewable energy from the price of fossil fuel-based energy to ensure that the most expensive fossil fuels no longer dictate overall electricity prices. Rapid implementation of the recent electricity market reform, coupled with the planned short- term market review, will help address these distortions. In addition, the new Affordable Energy Action Plan—aimed at increasing transparency and oversight of gas markets—will further support the goal of making clean power more accessible and cost-effective for all.

With the recent adoption of the Clean Industrial Deal and the Affordable Energy Plan, the European Commission targets 32% electrification of overall energy demand, underscoring affordable, emission-free electricity’s critical role in industries such as steel, chemicals, and cement.

Refuelling station HySetCo – Porte de Saint Cloud – Paris

By 2040, Europe’s electricity sector could be almost entirely decarbonized, accounting for half of its final energy consumption. Each electrified vehicle, heat pump, or industrial process eliminates direct emissions previously generated by fossil fuels. From the consumer perspective, electrification also provides opportunities for active energy management. Recent EU regulations grant new rights such as self-consumption, energy sharing, and renewable energy communities, allowing citizens direct participation in renewable energy benefits. Greater energy production, Made in Europe significantly reduces vulnerability to global fossil fuel price fluctuations and supply disruptions, strengthening economic resilience and long-term competitiveness. Ultimately, a highly electrified Europe is more autonomous, channeling resources into internal investments and sustainable growth rather than external fossil fuel dependencies.