A recent analysis commissioned by Eurelectric indicates that moving toward electricity-based energy systems could revitalize Europe’s industrial competitiveness, reduce its dependence on fossil fuels, and boost economic growth.
Electricity has already become a more efficient option than fossil fuels in some sectors, and its broader application in heavy industries could also be economically viable by the end of this decade. Reaching this goal will depend on strategic financial support, stable long-term investment plans, and the expansion of tools like Carbon Contracts for Difference (CCfDs).
Europe’s prolonged reliance on imported fossil fuels has undermined its economic stability, exposing industries to volatile market conditions and high energy costs. The impact has been significant, with energy-related expenses reaching 350 billion euros in 2024, following a loss of 600 billion euros just two years prior. To maintain its global economic standing, Europe must address this vulnerability. Eurelectric identifies electrification as a key solution for reversing the trend and creating a more resilient and independent industrial base.
However, a universal approach will not work. Each manufacturing sector needs a customized electrification strategy to fully utilize the advantages of clean electricity. The study analyzes three industrial models to show how electric technologies can outperform fossil-based systems by 2030.
In industries operating at temperatures below 500 degrees Celsius, such as battery production, electric options like heat pumps are already more efficient and economical. Moderately energy-intensive sectors, such as milk powder processing, could benefit from improved efficiency and cost savings through partial electrification. For energy-intensive industries like ethylene manufacturing, major technological innovations are necessary to reduce the high initial costs of switching to electric alternatives.
A targeted, sector-specific electrification approach could mark the beginning of a new industrial age in Europe, driven by cleaner and more sustainable energy sources.
