Electrification: potential, benefits and challenges

Tsvetelina Penkova, EEF President, and chair of the meeting opened the discussion by emphasized that high energy prices are a significant challenge across member states, impacting economic competitiveness. She suggested that future policies should prioritize price stabilization and infrastructure investment, including long-term energy contracts, a redesigned electricity market, and improved transparency. Mario Draghi’s report highlighted similar concerns, noting that energy price volatility and differences in pricing across EU countries create unequal impacts on industries and hinder competitiveness. It emphasized the need to focus on energy contracts, market structure, and infrastructure upgrades could help the EU stay competitive globally and stabilize short-term energy prices.

Walburga Hemetsberger, CEO of SolarPower Europe, called for an “Electrification Action Plan” to speed up the energy transition, proposing that electrification, with its cost advantages, could be a strategic choice for Europe. She noted that the plan should cover all aspects of energy production and distribution, positioning renewables as a solution that can be both locally produced and cost-effective. Ms. Hemetsberger underscored that rapid action is essential to position the EU as a leader in sustainable energy and to bolster industrial resilience.

Armando Martínez Martínez, CEO of Iberdrola, discussed the transformative potential of electrification, stressing that it serves dual purposes of climate action and economic growth. He noted that electrification presents industries with opportunities to innovate, reach sustainable markets, and improve competitiveness. Martínez recommended that financial incentives and policy support be provided to industries transitioning to renewable energy, given the challenges and costs involved. He further advocated for simplifying regulatory processes to accelerate the adoption of green technologies and improve industrial efficiency.

Greg Jackson, founder of Octopus Energy, highlighted the technological advances driving down costs for renewable energy, batteries, and electric vehicles. He observed that these developments make renewable-based electrification increasingly viable and competitive. Mr. Jackson illustrated how technology-driven price reductions create consumer benefits, and he noted the strategic importance of electrification in securing Europe’s position in a competitive global market. He emphasized that the EU should act quickly to support consumer access to renewable energy and capitalize on the cost benefits of green technologies.

Catherine Vandenborre, CEO of Elia, discussed the infrastructure needed for successful electrification, including the importance of cross-border transmission and distribution networks. She argued that stronger grid connectivity is crucial for achieving a stable and resilient energy union. Ms. Vandenborre recommended that the EU expand investments in both domestic and international infrastructure, especially in offshore wind, which she described as central to Europe’s energy future. She suggested that these investments be coordinated at the EU level to achieve a unified approach to energy distribution and avoid regional disparities.

Ditte Juul Jørgensen, Director-General for Energy, introduced the EU’s forthcoming electrification strategy, aimed at tackling current barriers to widespread electrification. She highlighted key focus areas, including increased investments in grids, expanded renewable energy deployment, and revised taxation policies to encourage green energy adoption. Ms. Juul Jørgensen emphasized that existing regulatory frameworks provide a strong foundation for this transition, but further coordination among member states will be essential to maximize the economic and environmental benefits of electrification. She concluded by stating that an inclusive approach across the EU would help foster economic growth while meeting climate goals.

The Q&A session with the participants was an opportunity to exchange on various points, including the need for a balanced and extensive electric vehicle charging infrastructure across the EU, as well as the importance of maintaining competitiveness for energy-intensive industries. Concerns were voiced about the impact of energy costs and supply chain dependencies on EU industries, and suggestions were made to encourage collaboration across sectors and countries to enhance energy security and industrial resilience.