Electrification crucial for EU energy security and industry competitiveness – power sector

Increased production and use of electricity across all sectors is key for the European Union’s energy supply security and industrial competitiveness, stakeholders from the power sector said at the annual conference of industry association Eurelectric. 

As the EU continues to deal with the consequences of the energy crisis, which have been exacerbated by Russia’s war against Ukraine and geopolitical shifts such as the new transatlantic rift, electricity is emerging as “the backbone of resilience in a changing world”, according to industry group Eurelectric’s secretary general, Kristian Ruby, speaking at the Power Summit 2025 in Brussels. "What Europe needs is a power play, a bold thrust to reignite our economy and unlock a new era of industrial growth – with unstoppable electricity made right here," he said.

A new report commissioned by Eurelectric states that electrification will be crucial in strengthening the competitiveness of European industry, which has been affected by high prices compared to other regions of the world, such as the US and China. However, electrifying key processes would require reducing technology costs, especially for high-temperature applications, also through state support, and reducing the cost of electricity compared to fossil fuels. This could be achieved by ending subsidies for fossil fuels and reducing taxes and levies on electricity. In contrast, electric solutions such as heat pumps already outcompete fossil fuels for industrial processes operating at less than 500 degrees Celsius, such as battery cell manufacturing, said Eurelectric.

The European Union relies heavily on fossil fuel imports from around the globe, and homegrown renewable electricity is considered vital for ensuring future energy security. Since the start of the war in Ukraine in 2022, the EU has drastically reduced energy imports from Russia through its own efforts and Russia's decision to halt pipeline gas supply. This has driven up the price of gas in particular – an important fuel and feedstock for many industrial producers.

“We will stop the import of energy from Russia,' said EU Commissioner for Energy and Housing Dan Jorgensen at the conference, referring to the union's plan to end its dependence by 2027.

Transitioning sectors such as steel, cement, chemicals and food production to be climate-friendly involves using renewable electricity wherever possible, as well as renewables-based fuels such as hydrogen produced through electrolysis, which are particularly important for high-temperature processes. Additionally, technologies can be employed to capture and store CO2 where there is currently no viable alternative to using fossil fuels.