Electrification in Europe has stagnated over the past decade, mainly due to reduced energy demand due to the industrial slowdown, according to a new report from electricity sector trade body Eurelectric.
The Power barometer 2024 The report highlights that the EU’s overall electrification rate has stagnated at 23% over the past decade, well below the bloc’s target of 50% by 2040.
Meanwhile, China has overtaken the EU in electrifying its economy, with its overall growth rate increasing by 7% since 2015.
According to the report, the lack of progress is closely linked to the declining demand for electricity in Europe.
While the power savings can be partly attributed to increased energy efficiency measures and milder weather conditions, Eurelectric sees the industrial slowdown due to economic decline as the main cause.
Between 2021 and 2023, electricity demand in the EU fell by 7.5%. The report found that more than half of this decline was due to powerful industries closing or moving abroad in response to rising inflation, high capital costs and uncompetitive energy prices.
Moreover, European industry has struggled to electrify its processes. Today, only a third of the energy consumed by European industry is covered by electricity, while only 4% of process heating – responsible for 75% of total industrial emissions – is electrified.
“The missing piece between going green and staying competitive is exciting. Industrial sectors have enormous potential to further electrify based on available technologies,” said Kristian Ruby, Secretary General of Eurelectric.
Despite the challenges, the report finds that Europe has made progress significant steps in reducing emissions. In 2023, the bloc’s energy sector managed to cut emissions by 50% compared to 2008, the biggest reduction to date, while 68% of the EU’s electricity was generated from clean energy sources – a figure that in the early years has risen to almost 75%. half of 2024.
“EU electrification stagnates as demand falls amid industrial decline – report” was originally prepared and published by Energy monitora brand owned by GlobalData.
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