European industry is facing a major hurdle in the race toward clean energy: the electricity bill. A new report unveiled  at WindEurope’s Annual Event in Copenhagen warns that Europe must radically reform its electricity billing system if it is to remain competitive and deliver on its energy security goals. The report, “Revamping Electricity Bills for a Competitive and Secure Europe”, tly released by WindEurope and VaasaETT, calls for a cost-neutral reallocation of electricity taxes and levies which currently hinder the EU’s push for electrification and renewables.  4n2e1o

With the EU’s Clean Industrial Deal aiming to power industrial growth through clean electricity and renewable energy, the report finds that existing electricity charges put Europe at a clear disadvantage compared to the United States and China, where industry pays far less in taxes and levies.

Wind power: Central to Europe’s energy future 5b3d3p

Wind energy is expected to become the EU’s primary electricity source before 2030. The European Commission wants wind to for 35% of electricity consumption by 2030 and over 50% by mid-century. Affordable, scalable, and domestically produced, wind power reduces energy costs while enhancing long-term security of supply.

Source: WindEurope

Despite these advantages, the transition to electricity in industrial processes is lagging. Currently, only 31% of industrial energy use in the EU is electric. However, the report stresses this could rise dramatically with available technology: 74% of industrial energy use is technically electrifiable today, with a further 19% potentially electrifiable by 2035, leaving only 7% that may remain reliant on other sources.

Electricity charges misaligned with energy goals 3s2o39

The WindEurope report highlights a paradox: while Europe needs to electrify to meet its climate and competitiveness goals, electricity is taxed more heavily than fossil fuels in many countries. In Poland, for instance, industrial electricity charges are double those of gas.

“These taxes are not just high — they’re misaligned,” said Vasiliki Klonari, WindEurope’s Director for Energy System Integration. “Too many charges are unrelated to energy and should be shifted to general taxation. Renewable electricity should not be punished while fossil fuels continue to receive subsidies.”

Europe has spent €364 billion on fossil fuel subsidies since the Green Deal was launched, undercutting the very energy transition it aims to promote.

 
Source: WindEurope

Complex exemptions, inequitable charges 41xq

The report also notes that some energy-intensive industries receive exemptions or reduced network charges due to the difficulty of electrifying their operations. Ironically, sectors that are ready to electrify — such as food and beverage, pulp and paper, chemicals, and even parts of steelmaking — often face steeper regulated costs.

“The current system discourages precisely the industries we need to electrify now,” said Pierre Tardieu, Chief Policy Officer at WindEurope. “European industry wants to invest in electrification. But if the price of electricity remains artificially high, it simply won’t happen at the pace we need.”

Five key recommendations for reform 4y1m42

To correct the imbalance, the report lays out five policy recommendations for EU governments:

1. Minimise regulated charges on electricity bills.

2. Eliminate non-energy-related charges from electricity costs.

3. Shift renewable and capacity charges to general taxation, improving transparency and ensuring that the broader economic benefits are shared.

4. Lower charges for electrification-ready industries, regardless of their energy intensity.

5. Retain consumption-based grid charges, to incentivise efficient use of the electricity system.

A call to action 4l4z4w

As wind energy becomes the backbone of Europe’s power system, aligning electricity pricing with climate and competitiveness objectives has never been more urgent. The message from WindEurope is clear: electrification is not just a technological issue — it’s a pricing one. If Europe wants to lead in green industry, its electricity bills must lead the way too.