Eurelectric urges Commission to establish an EU Electrification Bank

Brussels – One of the keys to a sustainable transition in the European Union is electricity, with direct electrification remaining “the most energy-efficient and cheapest option” for industrial processes below 500 °C. Yet, the electrification rate remains stuck at 33%.  Eurelectric, the association representing the European electricity industry, calls on the EU to take a step forward and proposes to establish an Electrification Bank as part of the next Electrification Action Plan and coordinate with the Clean Industrial Deal, the strategy that Energy Commissioner Dan Jorgensen will develop and present by the end of February.

Studies suggest that, with available technologies, the electrification rate could be as high as 90 percent by 2035. To promote industrial electrification, the association asks the Community Executive to create the Electrification Bank to centralize expertise, financing options, and risk-reduction tools in a one-stop shop managed by the Commission with support from the European Investment Bank (EIB) and member states. This institution should provide compensation for critical capital expenditures (Capex) and conditional support for operating expenditures (Opex) during the transition period of industries.