Energy-intensive industries in Europe have urged the European Commission to prioritize competitive electricity prices and investment support in the upcoming EU Electrification Action Plan (EAP), warning that persistently high energy costs threaten industrial competitiveness and decarbonization efforts.
In a joint position paper, industry groups representing sectors such as steel, chemicals, metals, cement and paper said the EU’s economic and energy outlook is putting industrial electrification investments at serious risk unless electricity prices are brought down.
The industry groups, including EUROFER and European Metals, said the Electrification Action Plan should first focus on restoring competitive electricity prices for industrial consumers. According to the position paper, reducing electricity costs is essential for maintaining Europe’s industrial base while pursuing climate neutrality.
Accelerating electrification and energy integration
In addition to lowering power costs, the industry groups recommend several structural measures, including creating better conditions for industrial electrification investments, accelerating development of the EU Single Market for Energy, expanding cross-border electricity interconnections, and increasing system flexibility through renewable and low-carbon energy sources.
They argue that improved flexibility and stronger cross-border electricity trading could help reduce energy price disparities between EU member states and improve overall system efficiency.
Industry stakeholders warn that Europe risks losing competitiveness globally if electricity prices remain structurally higher than in other regions. They emphasize that the Electrification Action Plan should support both climate objectives and industrial competitiveness, ensuring that energy-intensive sectors can continue operating while transitioning toward lower-carbon production technologies.
