Electrification is a vital tool in reducing Europe‘s dependancy on fossil fuels and restoring competitiveness, a new study commissioned by Eurelectric has claimed.
According to the study, The new industrial age: Tailored electrification pathways for Europe’s industrial competitiveness, dependancy on fossil fuels has ‘undermined Europe’s competitiveness’, subjecting businesses to external market volatility and high prices.
Fossil fuel energy imports cost Europe €350 billion in 2024, and while this is down on €600 billion in 2022, it remains a ‘burden it can no longer afford if it aims to remain competitive on the global stage’.
‘Unlocking economic opportunities’
“Electrifying Europe’s industrial sectors is essential to unlocking economic opportunities, cutting emissions, and strengthening the continent’s role as a global innovation leader,” commented Kristian Ruby, Eurelectric secretary general. “To achieve this, we need targeted industrial strategies that reflect each sector’s unique needs.”
Electrifying energy-intensive operations could help them to become cost competitive by 2030, backed by financial packages, long-term contracts, and expanded support mechanisms, Eurelectric notes.
A ‘new Industrial Age’
It noted that tailored approaches for individual manufacturing segments are needed to unlock a ‘new Industrial Age’ for Europe, powered by clean electricity.
According to the study, electrification is already outperforming fossil fuels in low-heat industrial processes (below 500°C), like battery cell manufacturing, while in medium-temperature sectors, such as milk powder production, electrification can improve energy efficiency and competitiveness.
Energy-intensive sectors such as ethylene production, however, will require greater technological advancements and innovation to reduce the upfront costs of electric solutions.
To close the competitiveness gap, Eurelectric has called for more financial incentives to encourage the switch to electrification; measures such as expanded Carbon Contracts for Difference (CCfDs) to protect against CO₂ and fossil fuel price volatility; and grid updates to support increased electricity demand and unlock flexibility potential. Read more here.
