• The European Commission has published the Electrification Action Plan, a strategic document setting out the actions and targets needed to electrify the economy. At the same time, the Commission has proposed a review of the EU Emissions Trading System (ETS) Directive.

• The Electrification Action Plan aims to reduce dependence on fossil fuel imports, which threaten the EU’s energy security and industrial competitiveness. The plan is expected to deliver annual savings of EUR 260 billion.

• The Commission’s document highlights the role of electric vehicles as mobile energy storage units that can improve the flexibility of the electricity system. This confirms that electrification is no longer merely part of climate policy, but above all a cornerstone of Europe’s economic resilience, according to PSNM.

On 17 July, the European Commission presented the Electrification Action Plan, which aims to make Europe the first continent to rely primarily on electricity. The document is the Commission’s response to the negative consequences of fossil fuel imports and the EU’s exposure to geopolitical crises. Recent events, particularly the war with Iran and the blockade of the Strait of Hormuz, have demonstrated that rising oil and gas prices directly affect inflation, business operating costs and the public finances of Member States. The Plan sets an electrification target of 46% by 2040. According to the Commission, achieving this target will reduce EU spending on fossil fuel imports by EUR 260 billion annually.

“The publication of the European Electrification Action Plan is one of the most significant political signals sent by the European Commission in recent years. The document confirms that electrification is no longer merely part of climate policy, but is becoming a cornerstone of Europe’s energy security, industrial competitiveness and economic resilience. The Commission makes it clear that reducing dependence on imported fossil fuels requires the accelerated electrification of transport, buildings and industry,” says Aleksander Rajch, Member of the PSNM Management Board.

Industry currently accounts for approximately one-quarter of energy consumption in the EU, while offering enormous potential for further electrification. Estimates suggest that 60% of the fuel currently consumed by industry could be replaced with electricity using technologies that are already available. The Commission identifies the food, paper, textile, construction materials, chemical and steel industries as sectors in which electrification should be prioritised.

Implementation of the Plan will significantly reduce gas and oil consumption, lower energy import costs and strengthen the competitiveness of European businesses. The specific measures set out in the Plan include reducing electricity costs. To this end, the Commission recommends reforming the charges and taxes included in electricity bills, gradually phasing out fossil fuel subsidies, changing the structure of network tariffs and providing greater incentives for consumers who use energy flexibly. As a result, electricity will become significantly more competitive than fossil fuels for both businesses and households.

Transport is one of the key areas of electrification addressed by the Plan. The Commission emphasises that switching from internal combustion engine vehicles to electric vehicles is one of the most important ways to reduce the EU’s energy dependence and limit oil imports.

“The Electrification Action Plan recognises electromobility as an integral part of the energy system. The Commission is moving away from viewing electric vehicles solely as a means of transport and highlights their role as mobile energy storage units capable of providing flexibility services through smart charging and Vehicle-to-Grid (V2G) technologies. This approach will benefit both vehicle users and electricity system operators. At the same time, it will accelerate the integration of renewable energy sources and increase their share in national energy mixes,” says Aleksander Rajch, Member of the PSNM Management Board.

According to the Commission’s analyses, by 2040, smart charging and V2G services could generate annual savings of more than EUR 44 billion for electric vehicle users. They would also reduce the scale of investment required in energy networks. By mid-2027, the Commission will assess the current state of V2G technology deployment across the EU and propose ways to make smart charging a standard option in electricity supply contracts for electric vehicle users. The next step, to be completed by the end of 2027, will be to introduce a requirement for new electric vehicles to be compatible with V2G technology, enabling bidirectional energy flows between vehicles and the electricity grid.

The Commission identifies several measures to accelerate transport electrification, including a review of the Clean Vehicles Directive by the fourth quarter of 2027, with a view to potentially tightening requirements for the share of zero-emission vehicles in public procurement. It also recommends continuing existing incentives and introducing new fiscal and non-fiscal measures specifically designed for electric vehicles. The need to accelerate the expansion of charging infrastructure will be addressed through a review of the Alternative Fuels Infrastructure Regulation (AFIR), expected later in 2026. To encourage the development of zero-emission heavy-duty transport, the Commission also intends to extend the e-HDV Clean Transport Corridors initiative to additional TEN-T corridors.

The Electrification Action Plan also prioritises energy storage. This is a strategic area given the growing share of renewable energy sources and the need to store electricity during periods of high generation for use when demand increases. The recommendations include developing battery storage and long-duration energy storage, integrating storage facilities with the grid, and expanding flexible demand management.

These measures are intended to bring total energy storage capacity to approximately 200 GW by 2030—almost four times the current level of 55 GW.

“The Commission clearly emphasises that the lowest energy prices are found in countries whose energy mixes rely heavily on low-carbon sources, particularly renewables and nuclear power. These sources are key to achieving the Plan’s objectives. To accelerate the development of renewables and nuclear power, the Commission calls, among other measures, for the full implementation of the RED III Directive, faster permitting for renewable energy projects, support for new nuclear investments, cooperation between Member States on reactor licensing, and better planning of energy investments. These measures are intended to enable the addition of 100 GW of new renewable energy capacity annually by 2030,” says Marek Popiołek, PSNM Business Development Director.

The Commission identifies electricity infrastructure, rather than the availability of technology, as the biggest constraint on the energy transition. The main barriers include insufficient grid capacity, a lack of available connection capacity, long queues for grid connections and inadequate investment in networks. The Plan focuses on optimising each of these areas.

Alongside the publication of the Electrification Action Plan, the Commission also presented a proposal to amend Directive 2003/87/EC concerning the EU Emissions Trading System (ETS). According to the Commission, the proposed changes are intended to provide “relief for industry” while preserving the ETS’s fundamental role in the climate and energy transition. The revised ETS is to place a strong emphasis on investment. For example, the Industrial Decarbonisation Bank (ITD) will allocate EUR 100 billion to industrial decarbonisation across Europe.

The Electrification Action Plan, ETS reform, and the challenges associated with the EU’s energy transition and reindustrialisation will be among the leading topics at this year’s New Mobility Congress. Dedicated programme tracks, including “New Energy & Infrastructure” and “New Economy & Investments,” will address these issues, bringing together decision-makers from the European Union and Poland, including representatives of central government, business and academia. The New Mobility Congress will take place at the International Congress Centre in Katowice on 23–25 September 2026.

More information about NMC 2026 is available at: Kongresnowejmobilnosci.pl