Delivering on the EU’s electrification ambitions

Electrification is a key pillar of the EU's energy security, industrial competitiveness, and climate strategy. Today, imported fuels account for around 60% of the EU's total energy demand and cost the bloc EUR 380 billion in 2024. The risks associated with the EU's reliance on fuel imports have been highlighted by recent market disruptions linked to the near-closure of the Strait of Hormuz amid the conflict in the Middle East, bringing renewed attention to the EU's target of increasing electrification from 24% today to 32% of energy consumption by 2030.1

This commentary is the second in a series examining the case for electrification in the EU. The previous instalment looked at the cost-competitiveness of electric technologies under 2025 price conditions. This commentary explores where new electricity consumption is expected to emerge across end-use sectors in order to reach the 32% target, and some of the challenges and opportunities that come with it.

Over the past decade, electricity demand has grown almost twice as fast as energy demand globally, heralding the arrival of an Age of Electricity. However, the EU's electrification rate over that period has remained relatively stagnant, and today remains broadly similar to those of advanced economies that are also rich in fossil fuel resources, such as the United States and Australia. By contrast, comparable advanced economies with more limited domestic fossil fuel supplies - notably Japan and Korea - have reached electrification rates well above 30%.