European Commission unveils plan to reach 46% electrification by 2040

The European Commission has introduced the Electrification Action Plan, a strategy consisting of 15 actions designed to increase electricity's share of final energy consumption from the current 23% to a target of 46% by 2040.

To achieve this, the plan focuses on decarbonizing buildings, industry, and transport. Key measures include revising the EU Emissions Trading System (ETS), adjusting energy taxation, and implementing dynamic network tariffs to encourage consumption during peak renewable production. In the building sector, the plan aims for the installation of approximately 4 million heat pumps annually by 2030 to replace gas boilers.

The strategy seeks to address the economic gap where electricity can cost up to three times more than gas. If successful, the Commission estimates the plan could reduce gas imports by over 70%, crude oil imports by over 40%, and save up to €260 billion annually on European energy bills by 2040, while cutting CO2 emissions by approximately 2,000 Mt. Ursula von der Leyen stated the objective is to "make Europe the first continent in the world powered by electricity."