Eurelectric urges the 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.

The Clean Industrial Deal “provides an opportunity to align policy with ambition when it comes to industry electrification,” reads Eurelectric’s position paper. The crux of the proposal is the public nature of the support the bank would have. It means money from states to transform Europe’s industrial base, which governments cautious about accounts and budget rules have always driven. The return for countries, Eurelectric continues, lies in the fact that “Electrifying industrial processes will improve energy efficiency, reduce operational costs over time, and enhance energy security, which the EU needs and on which it risks hitting a wall, by lowering reliance on imported fossil fuels.”

English version by the Translation Service of Withub