Priorities for an EU Electrification Action Plan

The European Commission’s Electrification Action Plan, which is expected to be adopted by mid-2026, is a key building block for achieving the EU’s climate targets. The Commission’s aim is to increase the share of electricity in final energy consumption to 32% by 2030.

However, the cep warns against artificially distorting electricity prices through state intervention in order to achieve these targets: “Market intervention sends the wrong signals and hinders the efficient transformation of the energy system. Instead of manipulating prices, policymakers should strengthen market-based hedging instruments,” explains cep energy expert André Wolf. Specifically, he calls for the removal of regulatory barriers to electricity forward markets, which must become more liquid and accessible across Europe to enable companies to hedge prices efficiently. The promotion of long-term electricity supply contracts, known as Power Purchase Agreements (PPAs), is also essential to link investment in renewable energy with industrial electricity demand.

State electricity price subsidies should continue to be clearly limited in scope and linked to conditions. At the same time, there needs to be certainty regarding the future of support measures for the period after 2030. A long-term state aid framework is necessary to ensure that investments in decarbonisation are not strangled

To manage existing bottlenecks in grid connections effectively, uniform prioritisation criteria across the EU are advisable. These should take into account the systemic role of industrial electricity consumers in the integration of renewable energy. “Large industrial electricity consumers are crucial for the integration of volatile renewable energy and thus for the stability of the entire energy system,” says Wolf.