Brussels: The European Commission unveiled its Electrification Action Plan on 17 July 2026, setting out how the bloc will more than double the share of electricity in its energy mix and turn Europe into what officials call the first electro-powered continent. The electrification plan lands as households and industry still shoulder some of the highest power prices in the world.

The Commission wants electricity to cover 46% of Europe’s final energy use by 2040, up from roughly 23% today. Reaching that indicative target, it argues, would cut the EU’s annual fossil fuel import bill by as much as €260 billion by 2040 and loosen the grip that imported gas holds over consumer bills.

Alongside the strategy, the Commission tabled a proposal to future-proof electricity bills, known as COM(2026)600. It hands member states clearer powers to lower network charges for vulnerable consumers and to cut taxes for energy-intensive businesses that switch away from fossil fuels. Brussels also insists that governments stop taxing electricity more heavily than gas, a quirk that has long discouraged households from electrifying their heating.

Faster rollout of smart meters sits at the centre of the package. The Commission argues that better metering lets families shift consumption to cheaper hours and see exactly where their money goes, while a stronger carbon market underwrites the industrial switch to clean power. Readers can find the full text in the Commission’s Electrification Action Plan communication.

The politics will prove harder than the arithmetic. Network charges and energy taxation remain national competences, so the electrification plan can only nudge capitals rather than compel them. Governments juggling tight budgets may balk at trimming the very levies that fund their grids, and industry groups warn that any promised relief must arrive quickly to matter.

Wind and solar developers broadly welcomed the ambition but flagged a catch. Doubling electricity demand only cuts emissions if the extra power comes from clean sources, which means Europe must build grids, storage and interconnectors far faster than current permitting rules allow. Critics also note that the 46% figure stays indicative, not binding, and could soften once the post-2030 Energy Union package arrives.

For now, the Commission frames electrification as both a climate tool and a competitiveness play, betting that cheaper, home-grown power will keep factories in Europe. Officials will spend the autumn selling the plan to member states, whose finance ministries hold the real levers over the electricity bills that ordinary Europeans pay. More detail sits on the Commission’s electrification page.