The European Commission is preparing a new long-term electrification strategy aimed at reducing Europe’s reliance on imported fossil fuels, strengthening energy security and supporting industrial competitiveness. The plan is scheduled for presentation on 17 July 2026. The accompanying legislative framework is expected in the fourth quarter of 2026 as part of the EU’s post-2030 climate and energy package.
Electrification is expected to be one of the central tools for delivering the EU objective of cutting greenhouse gas emissions by 90% by 2040 compared with 1990 levels. A final electrification target has not yet been disclosed. The Commission estimates that broader electricity use could eventually replace around two-thirds of current natural gas consumption and reduce oil demand by approximately 50%.
Fuel import bill impact and electricity share in final energy
If fuel import volumes fall as projected, the EU’s external fossil-energy bill could be reduced by around €200 billion by the end of the next decade. The Commission links this potential effect to wider industrial and balance-of-payments significance. The context includes several years in which European manufacturers faced higher energy costs than competitors in the United States and parts of Asia.
Electricity currently accounts for only around 23% of final energy consumption in the EU. At the same time, about 70% of European power generation already comes from domestic low-carbon sources. The electrification rate remains below levels in China, Japan and South Korea, where electricity represents more than 30% of final energy use.
Industrial electrification, transport charging and port transformation
The Commission is considering targeted support for industrial electrification. Financing options under consideration include revenues generated by the EU Emissions Trading System. Other measures being discussed cover additional electric-vehicle charging infrastructure and greater deployment of electric heavy-duty vehicles.
The strategy also includes plans to transform ports into clean-energy and electrification hubs. These measures are positioned alongside industrial electrification support within the Commission’s broader programme.
Buildings, heat pumps and effects on gas demand
Buildings are set to be another major element of the programme. New incentives could accelerate heat-pump installations, reflecting that buildings account for roughly half of EU natural gas consumption. Electrification of industrial heat and residential heating would therefore affect gas demand, network loads and the seasonal pattern of European electricity consumption.
The Commission’s approach ties building-sector measures to changes across both demand and system operation. This includes implications for how electricity demand aligns with seasons as heating shifts away from natural gas.
Investment needs, permitting constraints and network performance
The strategy requires substantially higher investment in generation capacity, electricity networks, storage and flexible demand. Grid availability is expected to become a principal constraint as renewable generation and industrial electrification expand. The Commission expects faster permitting plus stronger transmission and distribution infrastructure to be necessary for progress at the required pace.
Alongside investment needs, policy design is expected to influence risk allocation between supply build-out and network performance. The direction under discussion would increase exposure to how electricity networks perform as electrification grows across sectors.
Energy taxation changes and removal of fossil-fuel subsidies after 2030
The Commission is also considering changes to energy taxation and a gradual removal of fossil-fuel subsidies after 2030. This policy direction is described as creating a larger investment market for renewable generation, batteries, grid equipment, heat pumps, charging infrastructure and industrial electrical systems. It also shifts a growing share of Europe’s energy-security risk toward electricity network performance.
