EU drafts plan to double electrification rate, cut oil and gas use
XLE•EU eyes 46% electrification target by 2040
The European Union is eyeing a target for electricity to account for 46% of energy consumption across the bloc by 2040, doubling the rate today, a draft European Commission proposal seen by Reuters showed.
The draft plan, which the Commission is due to publish on Friday, is part of the EU's response to the fallout of the Iran war, which sent oil and gas prices soaring and spurred Brussels to prepare new measures to cut Europe's reliance on imported oil and gas.
The target was still being negotiated inside the European Commission on Thursday, and could change before it is published. A Commission spokesperson declined to comment.
Draft says lower fossil fuel import bill could follow
Other parts of the EU plan, reported last week by Reuters, include policies and funding to incentivise this shift.
The draft plan said achieving a 46% electrification target could reduce the EU's fossil fuel import bill by up to €260 billion per year by 2040. The EU imports more than 80% of the gas it consumes, and more than 90% of its oil.
The draft proposal said the Commission would set out the plan on Friday, and propose legislation in the fourth quarter to fix the target into law.
More electric vehicles, heat pumps and grid investment needed
Just 23% of the EU's final energy consumption is met by electricity today, a share that has been stagnant for a decade. The rest of the economy runs mostly on fossil fuels.
Raising that share to 46% would require a massive increase in electric vehicles, more widespread replacement of gas boilers with heat pumps in homes, and electrifying industrial processes — as well as extensive upgrades of Europe's ageing power grids.
