The European Commission is preparing a new long-term electrification strategy intended to reduce Europe’s reliance on imported fossil fuels, strengthen energy security and support industrial competitiveness. The strategy is scheduled for presentation on 17 July 2026, with the accompanying legislative framework expected during the fourth quarter of 2026 as part of the EU’s post-2030 climate and energy package.
Electrification is expected to become one of the central instruments supporting the EU objective of reducing greenhouse gas emissions by 90% by 2040, compared with 1990 levels. Although a final electrification target has not yet been disclosed, the Commission estimates that wider electricity use could eventually replace around two-thirds of current natural gas consumption and reduce oil demand by approximately 50%.
The resulting decline in fuel imports could lower the EU’s external fossil-energy bill by around €200 billion by the end of the next decade. That calculation gives the strategy a broader industrial and balance-of-payments significance, particularly after several years in which European manufacturers have faced higher energy costs than competitors in the United States and parts of Asia.
Electricity currently represents only around 23% of final energy consumption in the EU, despite approximately 70% of European power generation already coming from domestic low-carbon sources. The electrification rate remains below that of China, Japan and South Korea, where electricity accounts for more than 30% of final energy use.
The Commission is considering targeted support for industrial electrification, potentially financed through revenues generated by the EU Emissions Trading System. Other measures under discussion include additional electric-vehicle charging infrastructure, greater deployment of electric heavy-duty vehicles and the transformation of ports into clean-energy and electrification hubs.
Buildings will form another major part of the programme. New incentives could accelerate heat-pump installations, reflecting the fact that buildings account for roughly half of EU natural gas consumption. Electrification of industrial heat and residential heating would therefore have a direct effect on gas demand, network loads and the seasonal shape of European electricity consumption.
The strategy will require substantially higher investment in generation capacity, electricity networks, storage and flexible demand. Grid availability is likely to become the principal constraint: new renewable generation and industrial electrification cannot progress at the required pace without faster permitting and stronger transmission and distribution infrastructure.
The Commission is also considering changes to energy taxation and the gradual removal of fossil-fuel subsidies after 2030. The policy direction creates a larger investment market for renewable generation, batteries, grid equipment, heat pumps, charging infrastructure and industrial electrical systems, but it also transfers a growing share of Europe’s energy-security risk to the performance of its electricity networks.
