The International Energy Agency chief, Fatih Birol, has called Europe’s sluggish move toward electrification a major mistake, citing the bloc’s 23 per cent share of electricity consumption. The EU’s rate matches that of the US, a major oil producer, while still relying heavily on imported hydrocarbons. Birol argues that the low electrification level hampers the EU’s competitiveness and economic sovereignty.

The Commission plans to lift the share to 32 per cent by 2030 and to set a 2040 target, while drafting measures to cut electricity taxes and cap the price ratio at 2.5 times gas for households and 2 times for industry. Only Sweden and Finland currently keep industry electricity below twice gas prices; Greece, Italy, Hungary and Ireland rank high.

Grid bottlenecks remain a barrier. The EU installed 85 GW of renewables last year, a record, and has 600 GW finished and queued. Many projects sit in remote locations, far from industrial hubs, creating congestion that national grids must resolve.

For investors, the shift signals rising demand for heat pumps, electric vehicles and battery storage, while utilities face pressure to modernise grids and adopt tax‑friendly pricing. Policymakers’ actions will dictate the pace of M&A in renewables, grid infrastructure and energy‑efficiency tech.