EU energy-intensive industries require affordable electricity

Europe's energy-intensive industries have outlined key requirements to ensure that the upcoming EU Electrification Action Plan, expected in May 2026, provides affordable electricity to industry. In a joint position paper, the Alliance of Energy-Intensive Industries, which brings together European industry associations representing sectors with high energy consumption, including the European Steel Association (EUROFER) and the European Metals Association (European Metals), warned that persistently high and volatile electricity prices undermine industry competitiveness and delay investment in decarbonization.

The sectors represented by the Alliance employ about 2.6 million people across the EU and underpin critical value chains. However, energy costs in Europe remain structurally high compared to third countries, contributing to factory closures, production cuts, and stalled electrification projects.

The latest data showing minimal growth in electricity demand in the EU in 2024 highlights what industries describe as a widening gap between climate ambitions and economic realities.

Key requirements ahead of the May plan

To make electrification viable in practice, the Alliance calls on the European Commission:

• set a competitive benchmark of €50/MWh for total industrial electricity costs;
• guarantee cost-based access to electricity for energy-intensive sectors;
• support compensation for indirect costs of the EU ETS after 2030;
• invest in the network