EU electricity supply falters as demand falls amid industrial slowdown – report

Electrification in Europe has stagnated over the past decade due to falling demand for electricity driven by industrial decline, according to a new report by electricity industry trading body Eurelectric.

I Power Barometer 2024 The report highlights that the EU’s overall electrification rate has stood at 23% over the past decade, well below the bloc’s 50% target by 2040.

Meanwhile, China has overtaken the EU in electrifying its economy, having increased its overall rate by 7% since 2015.

According to the report, the lack of progress is closely related to the decline in electricity demand in Europe.

Although the reduction in electricity can be partly attributed to increased energy conservation measures and milder weather conditions, Eurelectric points to industrial decline caused by the economic downturn as the main cause.

Between 2021 and 2023, electricity demand across the EU will decrease by 7.5%. The report finds that more than half of this reduction was due to power plants closing or relocating due to rising inflation, high capital costs and uncompetitive electricity prices.

In addition, EU industry has struggled to electrify its processes. Today, only a third of the energy used by European industries is covered by electricity, while only 4% of process heat – responsible for 75% of total industrial emissions – is electrified.

“The missing piece between staying green and staying competitive is electricity. “Industries have a great opportunity to electrify continuously based on existing technologies,” said Eurelectric’s general secretary Kristian Ruby.

Despite the challenges, the report notes that Europe has made significant strides in reducing carbon dioxide. By 2023, the bloc’s energy sector has managed to reduce emissions by 50% compared to 2008, the biggest reduction to date, while 68% of the EU’s electricity is produced from clean energy sources – a figure that has risen to almost 75% initially. part of 2024.

“EU electricity supply falters as demand slows amid industrial slowdown – report” was originally created and published by Energy Monitor, a brand owned by GlobalData.

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