In a significant boost for the renewables industry, chief executives from all major power companies in Europe have committed to achieving a carbon-neutral electricity mix in the EU “well before” 2050 — while accelerating both digitalisation and the electrification of the heating, transport and industrial sectors.

The Vision for the European Electricity Industry — unveiled in Brussels on Wednesday morning by Europe’s electricity trade association, Eurelectric — was unanimously approved by “engaged company CEOs and industry representatives across Europe”.

“Today’s announcement shows how, together, we are determined to accelerate the energy transition through a progressive electrification of Europe’s energy consumption while making the European power sector carbon-neutral well before mid-century,” said Eurelectric president and Enel chief executive Francesco Starace.

The Vision document declares that “we, the European electricity industry” will lead a cost-effective energy transition through investment in clean power generation and “transition-enabling solutions”, and the increased use of renewables, digitalisation, demand-side response, as well as reinforcement of grids.

Other pledges include offering competitive electricity to the transport, heating and industrial sectors; embedding sustainability in all parts of the value chain; and innovating to develop cutting-edge business models and breakthrough technologies.

“The investment required in clean electricity and transition-enabling technologies are huge,” said Alistair Philips-Davies, chief executive of UK utility SSE and vice-president of Eurelectric. “This [Vision] statement reflects our full commitment to invest in innovation, to build new cross-sector business models, and ensure that electricity keeps creating value in decades to come.”

But the document acknowledges that the electricity industry can’t do all this on its own. It also calls upon European and national policymakers and stakeholders to:

recognise and actively support the energy transition;
deliver a strong carbon market;
channel financing towards transition-enabling technologies;
introduce smarter regulation to promote electrification;
promote digitalisation of the entire value chain;
enable “smart grids” that integrate centralised and decentralised technologies;
create a “well-functioning, fully integrated power market at the heart of the European energy system”, and
actively manage any social and geographic impacts of the transition.

“The commitment and ambition expressed in this vision is challenging, especially for regions which depend on high-carbon value chains,” said Eurelectric secretary-general Kristian Ruby.

“We therefore call on policymakers to do their utmost to ensure a fair and responsible transition, both socially and geographically, and provide the necessary support and funding to address any socio-economic impacts [of the energy transition].”

Transition

Utilities commit to carbon-neutral power in EU ‘well before 2050’