Accelerated Electrification Could Save Europe €250bn Annually by 2040

Germany's expansion of solar power has significantly lowered electricity prices, saving consumers billions annually and emphasizing the importance of continued government subsidies to support solar growth. Meanwhile, Europe faces a high cost of residential electricity and persistent reliance on fossil fuel imports, which have led to a costly energy crisis and exposed vulnerabilities in the continent's energy system. Reports from Schneider Electric highlight that Europe's electrification rate remains low at 21%, trailing behind China, and accelerating electrification could save the EU €250 billion per year by 2040 by addressing the energy trilemma of affordability, security, and sustainability. Despite a 37% reduction in EU emissions since 1990, fossil fuels still constitute 58% of the energy mix, keeping costs high and sustainability goals distant. Progress in electrification varies widely across Europe, with Nordic countries advancing in transport and buildings, southern Europe showing higher building electrification, and Western and Central Europe increasing industrial electrification investments. The reports urge policymakers to reduce fossil fuel subsidies, bridge the electricity and gas price gap, and implement supportive policies to speed up the transition to a more electrified and secure energy future in Europe.