A new study commissioned by Eurelectric reveals that electrification is central to restoring Europe’s industrial competitiveness, reducing its dependency on fossil fuel imports, and unlocking long-term economic benefits. As the continent continues to recover from the energy crisis triggered by geopolitical tensions and volatile fossil fuel markets, the shift to clean electricity is gaining strategic importance.
In 2024 alone, Europe spent €350 billion on fossil fuel imports—down from €600 billion in 2022 but still a massive drain on the economy. This level of dependency has made industries across the continent vulnerable to unpredictable price shocks and undermined their global competitiveness.
The Eurelectric study outlines how electrification can reverse this trend. By comparing the total cost of ownership (TCO) of electric technologies with fossil fuel alternatives across three industrial archetypes, the report shows that electrifying energy-intensive operations can become cost-competitive by 2030—with the right policy support.
“Electrifying Europe’s industrial sectors is essential to unlocking economic opportunities, cutting emissions, and strengthening the continent’s role as a global innovation leader,” said Kristian Ruby, Secretary General of Eurelectric. “To achieve this, we need targeted industrial strategies that reflect each sector’s unique needs.”
You can read the full report here.
Sector-Specific Solution
The study emphasizes that electrification is not a one-size-fits-all solution. Different industries have different needs, and the shift must be tailored accordingly. In some areas—like battery cell manufacturing—electric options such as heat pumps already outperform fossil fuels in both cost and performance. In other sectors, like milk powder production, switching to electricity can significantly reduce energy use and boost competitiveness. But for the most energy-intensive industries, such as ethylene production, further innovation is needed to make electric technologies more affordable and scalable.
The report also calls for investments in infrastructure. Upgrading the electricity grid and tapping into flexibility solutions—like demand response or energy storage—will be essential to support the increased demand from industrial electrification.
The study identifies three broad categories within industry:
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Low-Temperature Processes (<500˚C)
In areas like battery cell manufacturing, electric technologies such as heat pumps already outperform fossil fuels in cost and efficiency. -
Medium-Temperature, Energy-Intensive Processes
Industries like milk powder production stand to gain from electrification through reduced overall energy use and improved economic performance. -
High-Temperature, Energy-Intensive Processes
Sectors such as ethylene production require further technological innovation to make electric alternatives more affordable. Lowering upfront costs through research and development will be essential.
What’s Needed to Accelerate the Shift?
To support this industrial transformation, Eurelectric calls for:
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Financial Support to ease capital and operational costs;
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Long-Term Contracts to improve investment security;
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Expanded Carbon Contracts for Difference (CCfDs) to shield projects from carbon price volatility;
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Grid Infrastructure Upgrades to handle the increased demand for electricity;
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Flexibility Solutions to ensure energy systems remain stable and efficient.
The message is clear: a one-size-fits-all approach won’t work. Tailored strategies must reflect the specific needs of each industrial segment. With smart investments and the right policy tools, Europe has a clear path to regain its industrial leadership—powered by clean, competitive electricity.
