The European Commission has unveiled its Electrification Action Plan alongside legislative proposals on energy taxation, network tariffs, grid connections in congested areas and the EU Emissions Trading Scheme (ETS). The package is designed to accelerate electrification throughout Europe’s economy while creating a more efficient, flexible and affordable electricity system.
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SolarPower Europe welcomed the plan’s ambition, including an EU-wide target of 46% electrification by 2040—roughly double today’s level. The association also praised the Commission’s efforts to address the tax imbalance between electricity and fossil fuels and to recognise battery storage, flexibility and smarter grid use as key elements of a competitive energy system.
However, SolarPower Europe stressed that the target will require substantial investment and dedicated financial support. It called for the proposed EUR 30 billion ETS-based investment booster and EUR 100 billion Industrial Decarbonisation Bank to explicitly support electrification projects. The association also urged the Commission to swiftly introduce measures to accelerate battery storage and other non-fossil flexibility solutions, including de-risking instruments for storage investments.
Double taxation a hurdle
Energy Storage Europe likewise welcomed the proposed reforms to network tariffs, particularly the stronger recognition of storage’s role in reducing congestion, avoiding renewable-energy curtailment and limiting the need for costly grid expansion. The Commission proposal states that tariffs for storage should reflect the benefits it provides to the network, should not discourage storage deployment and should support non-fossil flexibility.
At the same time, the organisation warned that the proposals do not yet fully address double charging and double taxation. It called for legally binding EU rules that prohibit storage facilities from being charged twice for the same electricity, once when it is withdrawn from the grid and again when it is reinjected. It also urged lawmakers to end the practice of taxing electricity both when it charges a storage facility and again when it is supplied after discharge.
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The legislative proposals will now be considered by the European Parliament and the Council. Both industry associations are calling on the co-legislators to ensure that the final rules provide transparent, proportionate and predictable incentives for electrification, flexibility and energy storage across all EU member states. (hcn)
