Industry Alliance Urges EU Electrification Action Plan to Deliver Affordable Power and Stronger Industrial Competitiveness

Industry Alliance Urges EU Electrification Action Plan to Deliver Affordable Power and Stronger Industrial Competitiveness

(IN BRIEF) Cefic and the Alliance of Energy Intensive Industries have presented a joint position paper outlining recommendations for the European Union’s upcoming Electrification Action Plan, warning that high and volatile electricity prices are undermining industrial competitiveness and slowing decarbonisation. Representing sectors employing around 2.6 million people, the industries call for a policy framework that ensures affordable and predictable electricity, including a benchmark target of €50/MWh for industrial power costs. The proposal also includes continued emissions cost compensation, investment in electricity grids, improved energy market functioning and stronger cross-border energy integration. The industries stress that electrification can only progress if energy prices become competitive and stable, enabling investment in low-carbon technologies and supporting Europe’s industrial base.

(PRESS RELEASE) BRUSSELS, 24-Feb-2026 — /EuropaWire/ — Cefic and other members of the Alliance of Energy Intensive Industries have outlined a series of policy recommendations aimed at ensuring that the European Union’s forthcoming Electrification Action Plan effectively stimulates electricity use across industrial sectors. In a joint position paper, the industries caution that persistently high electricity prices threaten both industrial competitiveness and decarbonisation progress, and they urge the European Union to establish a policy framework that supports both climate objectives and economic resilience.

Energy-intensive industries support approximately 2.6 million jobs across the European Union and play a vital role in strategic value chains. Despite this importance, progress in industrial electrification has remained limited since the energy price crisis, while the competitiveness gap between European industry and global competitors has widened. Structural challenges such as high and volatile electricity prices continue to affect production decisions, contributing to reduced output, facility closures and postponed investments in low-carbon technologies.

Recent figures indicate that electricity demand across the EU showed only marginal growth in 2024, underlining the disconnect between ambitious climate targets and economic conditions. Industry representatives emphasise that the main obstacle is not technological readiness but rather the lack of reliable and affordable electricity supplies that would allow electrification projects to proceed at scale.

The Alliance highlights a target benchmark of €50 per megawatt-hour for total industrial electricity costs as essential for maintaining competitiveness with regions where energy prices are significantly lower. Achieving such a benchmark would make a wide range of electrification investments economically feasible and support the transition toward lower-emission industrial processes.

The Alliance of Energy Intensive Industries calls on the European Commission to incorporate several key priorities into the Electrification Action Plan scheduled for publication in May 2026. These include establishing the €50/MWh electricity price benchmark for industrial users and ensuring that energy-intensive sectors have access to electricity priced on a cost basis. The industries also advocate maintaining indirect cost compensation under the EU Emissions Trading System beyond 2030.

Further recommendations include continued investment in electricity grids while keeping network tariffs for industrial users as low as possible, as well as improving the short-term electricity market through a comprehensive assessment to be completed by June 2026. The Alliance also stresses the importance of accelerating development of the EU Single Market for Energy through stronger interconnections and expanded cross-border trading capacity.

To encourage electrification investments, the industries propose creating supportive financial conditions, including operational expenditure support mechanisms, rather than relying solely on electrification targets. They also recommend measures that enhance system flexibility and promote contributions from a broad mix of renewable and low-carbon energy sources.

The Alliance of Energy Intensive Industries represents a broad range of European industrial sectors with significant energy requirements. Participating organisations include the Confederation of European Paper Industries, Euroalliages, Euromines, CERAME-UNIE, Cefic, EXCA, EIGA, EuLA, European Metals, Eurofer, FuelsEurope, Glass Alliance Europe and IFIEC.

Media Contact:

media@cefic.be

SOURCE: Cefic