European Commission to Unveil 2040 Electrification Target on July 17

The European Commission is scheduled to unveil an electrification target for 2040 on July 17. The target will specify the share of electrification as part of total energy consumption in the EU by 2040, OilPrice.com reported. "With decisive action at all levels, Europe can become the first electro-continent," the European Commission stated in a document seen by Bloomberg News.

The commission added that the transformation will require investments while delivering savings and benefits beyond the energy system, including for clean tech manufacturers, the installation sector, competitive industries, and reduced emissions in cities.

Higher electrification rates could replace two-thirds of EU gas consumption and halve oil consumption, according to provisional estimates in the draft. The expected decline in fossil fuel use could reduce the bloc's energy import bill by $228 billion, or 200 billion euros.

The EU's current electrification rate stands at about 23 percent and has remained stagnant at that level for nearly a decade, OilPrice.com reported. China, Japan, and South Korea have each exceeded a 30 percent rate. The EU holds an implicit electrification target of 32.5 percent by 2030, based on estimates from the clean energy think tank Ember.