According to a study commissioned by the federation of the European electricity industry, Eurelectric, carried out with consultancy firm Accenture and presented at the ‘Power Summit 2025’ event in Brussels, on Tuesday 3 June, the electrification of medium-energy-intensive activities could become cost-competitive by 2030.
However, it will be necessary to reduce technological costs and close the competitiveness gap between the costs of electricity and those of fossil fuels.
Based on an analysis of three typical industrial cases, the study concludes that for energy-intensive sectors such as ethylene production, chemicals, iron and steel, more technological advancements and innovation are needed to reduce the upfront costs of electric solutions.
“Stakeholders need to (among other things) work together and try to optimise the system by leveraging data and AI, which will help find optimal solutions and boost innovation”, said Andrea Falciai, EMEA Utilities Industry lead at Accenture.
Although Europe has been a leader in the development of early-stage clean technologies, such as wind turbines, “difficulties remain in its ability to scale, deploy and maintain their competitiveness”, the study acknowledges. “Expanding Europe’s clean technology base will be crucial to achieve climate and industrial leadership”.
In order to eliminate the competitiveness gap between electricity and fossil fuels, the report considers it necessary to abandon subsidies for fossil fuels and goes on to discuss the need to eliminate certain bottlenecks limiting production from ‘net zero emission’ technologies.
It also highlights the need to reduce the risk of long-term contracts, such as PPAs, in order to limit the risk of fluctuations in the electricity markets for major projects such as wind, solar and nuclear power.
“While it is unlikely that all the supply would be purchased using these instruments (...), the increase of their percentage in the mix would benefit the overall cost of supply”, the report states.
Eurelectric also highlights the expansion of Carbon Contracts for Difference (CCfDs) and the need for financial support to reduce capital and operating expenses.
To minimise system costs, the study also recommends greater flexibility and action on electricity taxation.
To see Eurelectric’s report and recommendations: https://aeur.eu/f/h5b (Original version in French by Pauline Denys)