Europe’s energy-intensive industries are warning that sky-high electricity prices threaten to derail both industrial competitiveness and decarbonisation efforts. In a joint position paper, a coalition of European industry associations outlined urgent demands for the EU’s upcoming Electrification Action Plan.
“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,” said Nicola Rega, Cefic Executive Director for Climate Change and Energy.
Energy-intensive sectors employ roughly 2.6 million people across the EU and form the backbone of critical industrial value chains.
Yet, years after the energy price crisis, electrification investments remain stalled, electricity costs remain volatile, and European plants are closing or reducing output. Recent data show that EU electricity demand barely rose in 2024, highlighting a widening gap between climate ambitions and economic reality.
The industries stress that the bottleneck is not technology but affordable, predictable electricity. To address this, the Alliance of Energy Intensive Industries is calling on the European Commission to ensure the Electrification Action Plan, due in May 2026, hits key priorities:
1. Set a competitive benchmark of €50/MWh for total electricity costs;
2. Guarantee exposed industries access to cost-based electricity;
3. Maintain indirect cost compensation under the EU Emissions Trading System beyond 2030;
4. Invest in electricity grids while keeping network tariffs low;
5. Ensure short-term electricity markets work for industry, with a full assessment by June 2026;
The Alliance brings together European associations from high-energy sectors, including the Confederation of European Paper Industries (CEPI), European Chemical Industry Council (Cefic), European Steel Association (Eurofer), FuelsEurope, and others.
