The path to electrification is one of the cornerstones of Europe’s energy transition strategy. With the growing urgency to decarbonize sectors like heating, transportation, and industry, electrification is becoming a key element in reducing emissions and achieving climate goals. As Europe moves towards a cleaner energy future, the expansion of renewable electricity sources and the development of electric technologies such as heat pumps and electric vehicles are crucial for reducing reliance on fossil fuels. However, challenges remain, including outdated infrastructure, regulatory hurdles, and the need for substantial investments to accelerate the transition. 13292r

In an exclusive interview with Review Energy, Kristian Ruby, Secretary General of Eurelectric since 2017, discussed the current state of electrification in Europe, the obstacles it faces, and the necessary actions to speed up the process. Ruby shared insights on how the EU can harness electricity to drive decarbonization, improve industrial competitiveness, and ensure a sustainable energy future for all.

Review Energy (R.E.): The Electrification Alliance started in 2017, but how do you evaluate the progress of electrification in Europe since its inception? What have been the biggest obstacles so far?

Kristian Ruby (K.R.): The electrification progress in Europe can be evaluated in two keyways.First, there’s the actual share of electricity in total final energy demand. In this regard, progress has been stagnant, and we have seen insufficient development in the real world.

Second, there's the shift in understanding about the role of electricity in decarbonization. Over the last decade—especially the last seven years with the Electrification Alliance—we have fundamentally changed the perception of electricity’s importance in the energy transition.

Years ago, the idea of using electricity for heating was widely dismissed. Energy specialists, particularly those focused on efficiency, viewed it as inefficient and undesirable because electricity was largely generated in large thermal power plants, transmitted over long distances, and then used in inefficient electric radiators. This process resulted in significant energy losses and high emissions.

However, we have demonstrated—with extensive research and collaboration—that electricity is on a path to becoming fully decarbonized. The energy source itself is transitioning from fossil-based to clean, and end-use appliances have dramatically improved in efficiency. For example, heat pumps are three to five times more efficient than gas boilers, and electric vehicles (EVs) outperform internal combustion engine cars in efficiency. Additionally, renewable energy sources are increasingly localized, reducing transmission losses.

This shift in perception is crucial. Policymakers, academics, NGOs, and industry stakeholders now recognize that if we want to decarbonize, we must electrify. That realization has been a major achievement in recent years.

R.E.: Currently, the electrification rate in the EU is around 23%. Based on your insights, what immediate actions should not only the Electrification Alliance but also governments, industries, and individuals take to accelerate the process?

K.R.: The first thing to understand is that increasing electricity’s share in overall energy demand is absolutely feasible—China is achieving this at record speed.

To make it happen, we need a long-term strategy, and thankfully, we now have one. The next step is implementing clear guidance for investors and stakeholders to drive electrification.

Together with our partners in the Electrification Alliance, we have outlined a roap for electrification acceleration. The key elements include:

1. Integrating electrification into legislation and planning – Policymakers must establish clear metrics that link decarbonization and electrification. If we decarbonize, how much will that increase electrification? We advocate for an indicator that tracks both and ensures national plans align with these goals.
2. Infrastructure investment and anticipatory planning – Grid operators need to prepare for a high-electrification future. We cannot rely on outdated grid infrastructure; it was built in the last century. Investing in modern grids today will enable the widespread adoption of EVs, heat pumps, and industrial electrification.
3. ing industrial electrification – Electrification is a key opportunity for Europe’s competitiveness. Many industrial processes can be electrified efficiently, which reduces emissions while keeping European industry competitive. Policies that promote competitive electricity pricing will be essential in this transition.

R.E.: You mentioned the importance of long-term planning. The European Commission has introduced several initiatives, such as the Clean Industrial Deal. What is your opinion on this initiative, and how does it electrification?

K.R.: We see potential for the Clean Industrial Deal to complement the Green Deal. However, we don’t yet have full details—it is set to be launched on February 26. Some indications have emerged from the Competitiveness Com released earlier last week, but the specifics are still unclear.

That said, it is encouraging to see the European Commission emphasizing competitiveness and the role of electricity in industrial policy. They have announced plans for grid improvements and an electrification action plan. The real challenge, however, lies in the details. We need to see the actual policy texts before assessing their effectiveness.

R.E.: What do you think is missing? What is preventing Europe from acting more decisively?

K.R.: The European Commission’s recent statements, including the Competitiveness Com, are pointing in the right direction. They emphasize simplification and electrification, both of which are critical. However, some key barriers remain:

1. Access to capital – Reports from Enrico Letta and Mario Draghi have highlighted that Europe faces challenges in capital markets. Rising interest rates and inflation make financing more expensive. Ensuring access to affordable capital is crucial for accelerating electrification.
2. Regulatory complexity – The European regulatory environment is highly complex. Even experienced Brussels policy experts struggle with the volume and complexity of regulations. This poses a major barrier for businesses trying to navigate the system. We need simplification to enable faster decision-making and investments.

R.E.: One major concern is affordability. How can we ensure that electrification remains accessible to all Europeans without significantly raising costs?

K.R.: It’s important to put this issue in perspective. Energy prices are often cited as the primary reason for Europe’s competitiveness challenges, but they are only one factor. Labor costs and regulatory burdens also play a significant role.

Europe has faced an unprecedented energy crisis in 2022–2023, triggered by Russia’s manipulation of energy markets. While policy missteps exacerbated the situation, prices have since stabilized. Electricity costs remain higher than desired but are not prohibitively high compared to historical levels.

To improve affordability, we should focus on:

1. Fair energy pricing and trade policies – Europe is investing in clean energy while some regions continue using cheap fossil fuels. We need trade policies, such as carbon border adjustments, to ensure fair competition.
2. Reducing electricity taxes – A significant portion of European electricity bills consists of taxes. If we want to encourage electrification, adding extra costs through taxation is counterproductive.
3. Streamlining permitting processes – Long permitting timelines—sometimes up to 10 years—make energy investments more expensive. Faster approvals would lower project costs and accelerate deployment.
4. Encouraging long-term electricity contracts (PPAs) – Many industrial consumers avoid Power Purchase Agreements (PPAs) due to market fluctuations. The European Commission could introduce standardized, risk-mitigated PPA templates to encourage broader adoption.
5. Future-proofing grid investments – By investing in smart grid technology and planning for long-term needs, we can reduce unnecessary costs. Anticipatory investments can save €12 billion annually by optimizing infrastructure deployment.

Ultimately, we won’t cut electricity prices in half, but smart policies can ensure affordability while ing electrification.