The European Commission on 17 July 2026 published an Electrification Action Plan setting an indicative EU target of 46% for electricity's share in final energy consumption by 2040, subject to a forthcoming impact assessment. The plan, adopted by the Directorate-General for Energy (ENER), aims to reduce fossil fuel dependence and lower energy costs, affecting all Member States and energy consumers.
The Commission argues that electrification could cut gas imports by over 70% and crude oil imports by over 40% by 2040, saving up to EUR 260 billion per year, and lower electricity generation costs by about 20% while reducing CO₂ emissions by more than 2,000 Mt in 2040 compared to today. The EU has spent over EUR 50 billion extra on fossil fuel imports since the Middle East crisis began, according to the document.
To accelerate electrification, the Commission encourages Member States to bring electricity-to-gas price ratios down to a maximum of 2.5 for households and 2 for industry by 2030. Alongside the plan, the Commission adopted a legislative proposal on network charges to incentivise electrification and improve the price ratio. The Commission will also propose a new network code and revise existing codes in 2026 to integrate battery storage, thermal storage, geothermal, electric vehicles, and heat pumps.
The plan sets a key performance indicator of 200 GW of storage capacity by 2030, up from around 55 GW in 2026. The European Investment Bank Group intends to provide over EUR 75 billion over the next three years for electrification, grids, storage, and flexibility. Additionally, the Commission will launch a framework for regulatory sandboxes and living labs for vehicle-to-grid business models.
The 46% target is indicative and will be subject to an impact assessment as part of the Energy Union Package in the fourth quarter of 2026. Implementation depends on Member State action and the outcome of that assessment. The plan does not specify binding national targets, leaving room for Member States to determine their own pathways. The legislative proposal on network charges will now be examined by the European Parliament and the Council, where debates on the balance between EU-level coordination and national flexibility are expected.