Europe’s energy-intensive industries have set out a series of proposals to ensure that the EU’s upcoming Electrification Action Plan delivers on its objectives to stimulate and boost electricity consumption in industry. In a joint position paper, industries warn that persistently high electricity prices risk undermining industrial competitiveness and decarbonisation efforts. They call for a policy framework that will enable EU industry in pursuing decarbonisation and industrial competitiveness.
Energy-intensive industries employ around 2.6 million people across the EU and underpin critical and strategic value chains. Yet, years after the energy price crisis, investment in electrification remains stalled and the competitiveness gap with third countries widened. Electricity costs in Europe continue to be structurally high and volatile, contributing to plant closures, reduced output and delayed decarbonisation investments.
Recent data show that EU electricity demand barely increased in 2024, highlighting a growing gap between climate ambition and economic reality. The industries stress that the challenge is not only a lack of available technologies, but mainly the absence of affordable and predictable electricity supply.
“Reaching 50 €/MWh as a benchmark goal for total electricity costs is key. At that price, Europe can compete with competitors abroad who pay significantly less, and a wide range of industrial electrification projects can become viable. Electrification is crucial for the industrial transition, but it can only scale if electricity is affordable and predictable.” – Nicola Rega, Cefic Executive Director for Climate Change and Energy.
Key demands for the EU’s Electrification Action Plan
To make electrification work in practice, the Alliance of Energy Intensive Industries call on the European Commission to ensure that the Electrification Action Plan, expected to be published in May 2026, delivers on a number of priorities including:
- Set a competitive benchmark of €50/MWh for total electricity costs for industry;
- Guarantee exposed industries access to cost-based electricity;
- Maintain the EU’s Emissions Trading System indirect cost compensation beyond 2030;
- Invest in grids while keeping network tariffs for industry at a minimum;
- Ensure the short-term electricity market works for European industry by carrying a full assessment by June 2026;
- Speed up the realisation of the EU Single Market for Energy by increasing interconnectivity and maximising cross-border trading capacity;
- Create the enabling conditions to invest in industrial electrification, including OPEX support, rather than setting electrification targets;
- Incentivise system flexibility, promoting the contribution of all renewable and low-carbon energy sources.
The Alliance of Energy Intensive Industries brings together European industry associations representing sectors with high energy use. The co-signatories from the Alliance include:
• Confederation of European Paper Industries (CEPI)
• Comité de Liaison des Industries de Ferro-Alliages (Euroalliages)
• Euromines
• European Ceramic Industry Association (CERAME-UNIE)
• European Chemical Industry Council (Cefic)
• European Expanded Clay Association (EXCA)
• European Industrial Gases Association (EIGA)
• European Lime Association (EuLA)
• European Metals
• European Steel Association (Eurofer)
• FuelsEurope
• Glass Alliance Europe
• International Federation of Industrial Energy Consumers (IFIEC)