EU Commission rolls out Electrification Action Plan for geothermal and retail

On 17 July the European Commission published its Electrification Action Plan, aimed at reducing dependence on imported fossil fuels and raising the share of electricity in final energy use to 46 % by 2040. The plan includes measures to make electricity cheaper, accelerate investment in heat pumps, district heating, storage and to remove barriers in energy infrastructure.

Geothermal energy receives a prominent role: the Commission recognises its potential to supply at least 10 % of the EU’s electricity and 25 % of heating‑cooling demand, and announces a Geothermal Stakeholder Partnership to begin in early 2027 to tackle financing, permitting and skill gaps.

EuroCommerce, representing European retailers and wholesalers, welcomes the plan but calls for a supportive framework. The sector consumes roughly 220‑240 TWh of energy annually and needs affordable, reliable power, sufficient grid capacity and streamlined financing and permitting to unlock its full contribution, including rooftop solar, electric logistics fleets, heat pumps, storage and charging infrastructure.