Electrification has the potential to save Europe £215 billion.

According to a new report from Schneider Electric, Europe could save up to £215 billion annually by accelerating electrification. The research, titled "Europe energy security and competitiveness – supercharging electrification," indicates that the EU currently spends about £325 billion yearly on imported energy, with nearly 60% of its supply coming from outside sources.

The findings suggest that increased electrification and support for prosumer initiatives could create up to 1 million local jobs. Presently, Europe's electrification rate is only 21%, unchanged for a decade and 10% lower than China's.

The report highlights that this stagnation poses risks to energy affordability and security. Residential energy costs in the EU average £0.23 per kWh, significantly more than £0.13 in the US and £0.07 in China, making energy about three times more expensive for European households compared to their Chinese counterparts.

Despite reducing emissions by 37% since 1990, Schneider Electric points out that reliance on imported fossil fuels continues to drive up costs and hinder sustainability efforts. Laurent Bataille, Executive Vice President of Europe Operations at Schneider Electric, emphasized the urgent need for Europe to overcome its electrification stagnation, calling for policies that incentivize and drive implementation for economic and environmental benefits.

The report urges policymakers to bridge the price gap between gas and electricity by eliminating fossil fuel subsidies and reforming energy taxes. It also advocates for faster financing for clean energy projects, easier access to investments, and targeted incentives for small and medium enterprises. Additionally, Schneider Electric stresses the importance of mandating electrification in new buildings, increasing the rollout of heat pumps and electric vehicles, and supporting local manufacturing.