It should form a core part of the announced Clean Industrial Deal, and be backed by three sets of instruments (details are set out at the end of this briefing): > Technology deployment and monitoring – such as adopting a manufacturing plan for electrification technologies; monitoring their 2 A N E L E C T R I F I C A T I O N A C T I O N P LA N T O S E C U R E E U I N D U S T RY ’ S F U T U R E dev. [...] 19 Madeddu et al., 2020, The CO2 reduction potential for the European industry via direct electrification of heat supply (power-to-heat); Fraunhofer Institute for Agora Industry, 2024, Direct Electrification of Industrial Process Heat 7 A N E L E C T R I F I C A T I O N A C T I O N P LA N T O S E C U R E E U I N D U S T RY ’ S F U T U R E . [...] Additionally, consumers may have to shoulder the costs of state-backed supply contracts for the massive deployment of renewables in the coming years;47 this has certainly been the case in the past in many EU countries.48 44 E3G, 2024, Gas transition in the EU: What’s next? A framework for a managed EU gas transition 45 Council of the EU, 2003, Directive restructuring the Community framework for th. [...] 59 European Commission, Industrial alliances (webpage, accessed September 2024) 60 European Commission, 2024, Mission letter to Dan Jørgensen, Commissioner-designate for Energy and Housing (PDF); European Commission, 2024, Report on the Review of the Regulation on the Governance of the Energy Union and Climate Action (PDF) 1 7 A N E L E C T R I F I C A T I O N A C T I O N P LA N T O S E C U R E E. [...] © E3G 2024 1 9 A N E L E C T R I F I C A T I O N A C T I O N P LA N T O S E C U R E E U I N D U S T RY ’ S F U T U R E The time for action on industrial electrification is now Supporting direct electrification will contribute to core EU objectives Direct electrification technologies can decarbonise most industrial processes The EU can take a technological lead, using first-move.
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Table of Contents
- The time for action on industrial electrification is now 3
- Supporting direct electrification will contribute to core EU objectives 5
- Direct electrification technologies can decarbonise most industrial processes 6
- The EU can take a technological lead, using first-mover advantage in direct industrial electrification 7
- Supporting direct electrification is necessary to protect small and medium-sized enterprises 8
- Direct electrification will support the EU’s energy resilience 9
- Electrification unlocks flexibility, offering a business opportunity and guaranteeing power system reliability 10
- The new Electrification Action Plan must address key barriers 10
- Difficulties integrating direct electrification technologies into specific sites 10
- Energy networks are not yet prepared for the electric future 11
- Energy prices do not incentivise electrification 12
- Manufacturing capacity is not prepared for rapid deployment 13
- The current policy framework is insufficient 13
- Missing regulatory signals for industrial electrification 13
- Developments in direct electrification technologies for industry are insufficiently monitored 14
- Direct electrification technologies are underrepresented in funding 15
- Policy recommendations for the EU Electrification Action Plan 16
- Technology deployment and monitoring 16
- Governance and planning 17
- Electricity pricing 17
- Considerations in developing policy measures for short-term electricity price support for industry 18
- About E3G 19
- Copyright 19