The European Commission is putting forward for the first time a specific target to electrify the European economy by 2040, as part of a broader strategy for the energy transition, strengthening clean technologies and reducing the EU's dependence on fossil fuels.
According to a draft document cited by Bloomberg, the Commission is expected to present its proposal on July 17, with the aim of incorporating the new design into future European energy legislation after 2030.
The target will be the percentage of total energy consumption covered by electricity by 2040. The exact percentage, however, has not yet been finalized.
The Commission estimates that the switch to electricity, which will be produced mainly in Europe, can contribute both to achieving the climate target of reducing emissions by 90% by 2040, compared to 1990 levels, and to strengthening the Union's energy security.
The need to limit dependence on imported fuels has gained more weight following the reduction in Russian gas supplies and the turbulence in international energy markets due to developments in the Middle East.
The draft strategy states that, with decisive action, Europe can become the first 'electric continent'. This transition, according to the Commission, will create new investment opportunities, support the clean technology industry, boost employment and help reduce emissions in cities.
Based on the Commission's calculations, accelerating electrification could replace up to two-thirds of the EU's current gas consumption and reduce oil consumption by 50% by the end of the next decade.
This development is estimated to reduce the cost of fossil fuel imports by around €200 billion, while curbing the high energy prices that affect the competitiveness of the European economy vis-à-vis the US and China.
Despite the fact that around 70% of electricity in the EU is already generated from domestic clean sources, the electrification of the economy remains stagnant. According to data from the International Energy Agency, electricity has accounted for about 23% of final energy consumption in the EU over a decade, while in countries such as China, South Korea and Japan the percentage exceeds 30%.
The plan provides for interventions in key sectors that are still dependent on fossil fuels. In industry, the Commission is looking at using targeted resources from the carbon market to finance electrical technologies.
In transport, priority is given to expanding charging infrastructure, accelerating the electrification of heavy-duty vehicles and transforming European ports into clean energy hubs.
Particular emphasis is also placed on buildings, which are responsible for about 50% of natural gas consumption in the EU. The Commission is considering measures to boost demand for heat pumps and other electric heating systems.
The Commission acknowledges, however, that the transition requires significant investments and the overcoming of serious obstacles, such as the high initial cost of replacing fossil fuel-powered systems, the need to modernize electricity grids, increasing electricity production and revising the energy tax framework.
At the same time, the Commission considers it necessary to phase out fossil fuel subsidies after 2030 in order to accelerate the transition to an energy system with a higher participation of clean electricity.
