In October, Eurelectric, the European association of electricity producers, presented its Power Barometer 2024 report, revealing that 74% of the electricity consumed in the EU in 2024 comes from emission-free sources, with 50% sourced from renewables.
The electricity sector continues to lead decarbonization, yet why is electrification progressing so slowly? Let’s check it out together:
- Europe lacks a clear strategy for electrification to decarbonize industry while boosting electricity demand and competitiveness.
- Today, one-third of the energy consumed by European industries comes from electricity, but only 4% of the heat used in high-emission industrial processes is electrified, yet the potential is huge!
- 92% of the industry’s final energy demand can be electrified with existing solutions. However, inadequate tax policies, which make kWh from gas cheaper on average than kWh from electricity for both the civil and industrial sectors, fail to stimulate demand.
- Adding to the challenge is the growing concern over heightened price volatility.
What would be needed, in practical terms?
- Greater investment in the grid.
- Increased storage capacity and flexibility to bring price stabilization.