Why Electrification

23.4%

Today, electrification accounts for just 23% of the EU’s energy system.

32%

The European Commission targets 32% by 2030.

50%

The European Commission projects 50% by 2040.

Facts and figures

30%

In 2025, wind and solar overtook fossil fuels in the EU power mix for the first time, reaching 30%.

2–5x

Heat pumps are up to 2–5 times more efficient than fossil-based heating systems, even at low temperatures.

20 million

In 2025, electric vehicles avoided 20 million tonnes of CO₂ emissions in Europe.

2040

Direct electrification could halve EU energy imports by 2040.

20%

Wind power already supplies 20% of EU electricity and avoids around 100 bcm of fossil fuel imports annually.

€60 billion

Combined with building efficiency, heat pumps could save €60 billion in fossil fuel imports by 2030.

€160 billion

Electrification, renewables and flexibility could generate €160 billion in system savings by 2040 .

3.5 million

The energy transition will require up to 3.5 million additional workers by 2030, with rapid growth in wind and solar sectors.

24%

The need for flexibility in the electricity system will increase significantly in all EU countries, reaching 24% (288 TWh) of total EU electricity demand in 2030 and 30% (2 189 TWh) by 2050 across all timescales (from 11% in 2021). Flexible solutions can deliver major benefits for Europe by 2030, including lowering electricity prices by up to 25%, saving around €130 billion in avoided fossil fuel imports, and preventing 151 million tonnes of CO₂ emissions every year.

€584 billion

As electrification increases, the electric grid will have to scale up: the European Commission estimates requiring roughly €584 billion in investment by 2030 (distribution and transmission) to modernise and expand electricity infrastructure. Roughly 40% of distribution grids are over 40 years old.

Our work

Electrification is the backbone of Europe’s clean energy transition - but progress is not happening fast enough. Today, only 23% of Europe’s energy system is electrified. To meet climate targets - including a 90% reduction in greenhouse gas emissions by 2040 - this share must at least double. Achieving this requires more than ambition: it requires the right policies, market design, and investment framework. The Electrification Alliance works to make electrification the default choice across Europe’s energy system. We bring together industry leaders, technology providers, and energy system actors to advocate for a faster, smarter and more cost-effective transition. Our work focuses on shaping EU policy and market frameworks that unlock electrification at scale. We engage directly with policymakers, contribute to legislative processes, and provide evidence-based recommendations on key files. We translate technical expertise into concrete policy solutions, ensuring that electrification is fully recognised as the most efficient and scalable pathway to decarbonisation.

What we do

Building the business case for electrification

We develop and communicate evidence on the economic, environmental, and system benefits of electrification. Our work highlights how electrification:

  • reduces system costs
  • strengthens energy security
  • supports industrial competitiveness
  • delivers immediate emissions reductions

By quantifying these benefits, we help policymakers and stakeholders make informed decisions.

Connecting sectors and stakeholders

Electrification cuts across buildings, transport, and industry. We act as a platform that connects these sectors and aligns their priorities, ensuring a coherent and integrated approach to the energy transition.

We foster dialogue between industry, policymakers, and other stakeholders to accelerate the deployment of electrification solutions across the economy.

Electrification for energy security

Electrification is central to Europe’s energy independence. By replacing imported fossil fuels with domestically produced renewable electricity, it reduces exposure to volatile global markets and strengthens resilience. A fully electrified system powered by renewables allows Europe to rely less on imports and more on secure, homegrown energy. Learn more about the role of electrification for energy security The message was clear: scaling clean power is key to Europe’s energy security, affordability, and long-term resilience.

Factsheet
Position paper

Electrification for the internal energy market

As demand for electricity grows, Europe’s integrated power market becomes an even greater strategic asset. Electrification enables more efficient use of this market by increasing cross-border trade, improving system balancing, and reinforcing the case for grid investments and interconnectors.

Electrification for energy efficiency

Direct electrification is the most efficient way to use energy. Technologies such as heat pumps dramatically reduce energy consumption compared to fossil-based alternatives, lowering both costs and overall system demand. Efficiency gains from electrification are essential to making the energy transition affordable.A fully electrified system powered by renewables allows Europe to rely less on imports and more on secure, homegrown energy. Learn more about the role of electrification for energy security The message was clear: scaling clean power is key to Europe’s energy security, affordability, and long-term resilience.

Electrification for decarbonisation

Electrification delivers immediate and sustained emissions reductions by replacing fossil fuel use across key sectors. It also creates stable demand for clean electricity, strengthening investment signals for renewables and grid infrastructure.

Electrification for innovation and competitiveness

Electrification drives industrial transformation. It creates scale for clean technologies, accelerates innovation, and positions European companies at the forefront of the global energy transition. A strong electrification strategy is not only a climate imperative - it is a competitiveness strategy. Efficiency gains from electrification are essential to making the energy transition affordable.A fully electrified system powered by renewables allows Europe to rely less on imports and more on secure, homegrown energy. Learn more about the role of electrification for energy security The message was clear: scaling clean power is key to Europe’s energy security, affordability, and long-term resilience.

Electrification is not one option among many.

It is the most efficient, scalable, and cost-effective pathway to a clean, secure and competitive European energy system. The Electrification Alliance is working to make it happen - faster.