European Commission Targets 46% Electricity Share by 2040, Aiming to Cut Fossil Fuel Imports €260 Billion
Updated
Updated · Fortune · Jul 27
European Commission Targets 46% Electricity Share by 2040, Aiming to Cut Fossil Fuel Imports €260 Billion
3 articles · Updated · Fortune · Jul 27
Summary
Europe’s first electrification target would lift electricity to 46% of total energy use by 2040, roughly double today’s share under the Commission’s new action plan.
The Commission says deeper electrification would strengthen energy security, lower household and industrial costs, and reduce exposure to geopolitical shocks tied to imported oil and gas.
€260 billion a year in fossil-fuel imports could be avoided by 2040, according to the plan, redirecting spending toward European grids, industry, technology and jobs.
Grid investment, faster permitting and tighter cross-border coordination are the main execution hurdles as demand rises from AI, data centers, transport, buildings and hydrogen production.
The plan casts electrification as an industrial strategy as much as a climate measure, with the EU arguing more connected power systems will bolster long-term competitiveness.