Rapid electrification to strengthen the EU

04.12.2025

Source: E & M powernews

Strategic Perspectives has published a report that shows how Europe can strengthen its competitiveness and energy supply by rapidly switching to the use of electricity.

On December 2, the analysis institute Strategic Perspectives EU published a new report on the role of electrification in Europe. According to "Boosting Electrification in Europe", the European Union can improve its economic stability and security of supply if it accelerates the expansion of electrical applications. The Brussels-based analysis institute works on climate and energy issues.

The authors rely on technical and economic evaluations which, in their view, prove that clearer political guidelines, targeted investments and a reliable framework for electrical technologies are key requirements for the coming years. Strategic Perspectives points out that increasing electrification would reduce dependence on fossil fuel imports.

43 billion euros in potential savings per year

According to the organization's calculations, the EU could save two thirds of its current fossil fuel imports by 2040. This would correspond to around 43 billion euros per year compared to a continued trend without additional measures (business-as-usual scenario). The authors state that lower import volumes reduce economic vulnerability to price fluctuations on the global energy markets.

Another finding of the report concerns industrial development. According to the authors, European manufacturers of electrical technologies ranging from vehicle components to heat pumps could benefit from rising sales volumes. The model calculations assume that around 150 million electric vehicles could be on the road in Europe by 2040 and 84 million heat pumps would be installed in buildings.

The report also calculates that 1,900 MW of wind and solar energy and 134,000 MW of battery storage capacity will cover electricity demand and stabilize the European energy system.

Increase energy efficiency by 12 percent

Strategic Perspectives also sees electrification as an opportunity to gradually replace outdated combustion technologies. According to the analysis, intelligent electrical applications could reduce energy consumption by twelve percent in 2040. The authors argue that lower energy costs would enable companies to position themselves better in international competition and tap into new markets.

At the same time, the report shows that Europe could fall short of its potential without additional political guidelines and investments. The organization's modelling assumes an electrification rate of 39% in 2040 if the framework conditions remain unchanged. The authors warn that this would unnecessarily prolong the EU's dependence on fossil fuels and weaken its chances of achieving a strong position in global electrical engineering.

Institute Director Neil Makaroff from Strategic Perspectives said that electrification is changing the foundations of the global economy. Europe may not have large oil or gas reserves, but it does have companies that are internationally active in electrical engineering. "Clear political guidelines are necessary to ensure that Europe does not lose touch with major competitors such as China," warned Makaroff.

Four political priorities

Industry analyst Tristan Beucler from Strategic Perspectives explained that the EU risks falling behind in international competition if it sticks to fossil fuels. In his view, electric applications are increasingly setting the technical standard, meaning that the EU must specify political goals and targets for the expansion of electrification.

The report identifies four political priorities for the future direction of the Energy Union. Firstly, Strategic Perspectives proposes an electrification target of 50 percent of final energy consumption by 2040. Secondly, a target for emission-free generation capacity is required to ensure that electricity supply and demand grow in harmony. Thirdly, a Europe-wide infrastructure plan is needed that takes into account grids and storage in particular. Fourthly, greater energy efficiency could reduce the demand for electricity; this could be supported by stricter ecodesign requirements for electrical applications.

The report on the electricity offensive in Europe is available for download as a PDF.

Author: Susanne Harmsen