Europe’s electrification has stagnated for the past ten years primarily due to decreased power demand driven by industrial slowdown, according to a new report from the electricity industry trade organisation Eurelectric.
The Power Barometer 2024 report highlights that the EU’s overall electrification rate has stagnated at 23% for the past decade, well below the bloc’s goal of 50% by 2040.
Meanwhile, China has surpassed the EU in electrifying its economy, having grown its overall rate by 7% since 2015.
According to the report, the lack of progression is closely tied to Europe’s decreasing electricity demand.
While the power cutback can partly be attributed to increased energy efficiency measures and milder weather conditions, Eurelectric identifies industrial slowdown driven by economic decline as the primary cause.
Between 2021 and 2023, electricity demand across the EU dropped by 7.5%. The report finds that more than half of this reduction was due to powerful industries either shutting down or relocating abroad in response to growing inflation, high capital costs and uncompetitive energy prices.
In addition, EU industry has struggled to electrify its processes. Today, only a third of the energy consumed by European industries is covered by electricity, while just 4% of process heating – responsible for 75% of total industrial emissions – is electrified.
“The missing piece between going green and staying competitive is electrifying. Industrial sectors hold a huge potential to electrify further based on available technologies,” said Eurelectric’s secretary-general Kristian Ruby.
Despite the challenges, the report notes that Europe has made significant strides in reducing emissions. In 2023, the bloc’s power sector managed to cut emissions by 50% compared with 2008, the largest reduction to date, while 68% of the EU’s electricity was generated from clean energy sources – a figure that has increased to nearly 75% in the first half of 2024.
“EU electrification stagnates as demand drops amid industrial decline – report ” was originally created and published by Energy Monitor, a GlobalData owned brand.
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