Schneider urges Europe to electrify

The study, Europe energy security and competitiveness – supercharging electrification, warns that Europe’s electrification rate has stagnated at just 21% for the past decade – 10% behind China – leaving the continent exposed to high energy prices and fossil fuel dependence.

The report finds that faster electrification could save €250 billion annually by 2040.

“The technology is here, ready to deploy,” said Laurent Bataille, executive vice president, Europe Operations at Schneider Electric.

“Electrification is vital – not only for achieving our climate ambitions, but for driving economic growth, energy independence and industrial competitiveness. Europe must break free from electrification stagnation urgently.”

The research highlights that Europe’s residential energy costs average €0.27 per kWh, nearly double those in the US (€0.15) and over three times higher than in China (€0.08). This, Schneider Electric argues, undermines Europe’s economic competitiveness and burdens households and industries alike.

The report emphasises that progress on electrification varies widely across the continent, with Nordic countries leading in transport and building electrification, while southern Europe advances in residential adoption and central Europe invests in industrial transformation.

To close the gap, Schneider Electric identifies key policy actions such as phasing out fossil fuel subsidies, reforming energy taxation to favour clean power and streamlining financing for electrification projects.

It also calls for mandating electrification in new buildings, accelerating heat pump and EV deployment and supporting local manufacturing and innovation to ensure the economic benefits stay in Europe.

“Europe has everything to gain – if it acts now,” said Bataille.