Electrification stalls in Europe despite record electricity surplus in France

Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Electricity consumption in Europe has not grown significantly over the past two decades, delaying the decarbonisation strategy promoted by the European Union. In France, this trend is reflected in a modest 0.7% increase in 2024, following two consecutive years of decline. This growth remains insufficient to return to the levels of the 2014–2019 period, with consumption still 6% lower.

Slow progress against ambitious targets

Across the European Union, electricity consumption rose by 1.5% in 2024, according to figures from energy operators. This marginal increase contrasts with the carbon neutrality ambitions set for 2050. The share of electricity in overall energy consumption has remained stable at around 23% for nearly a decade, according to Eurelectric, the industry representative. This slow electrification of usage particularly affects the industrial sector, where only 4% of high-emission thermal processes are currently electrified.

Unfavourable economic conditions

The price gap between electricity and gas continues to be a limiting factor. Although gas remains twice as expensive as before the 2022 energy crisis, its cost has become sustainable again for industrial use. Phuc-Vinh Nguyen, Head of the Energy Centre at the Jacques Delors Institute, explains that inefficient fiscal mechanisms fail to encourage substitution. He recommends a rebalancing of taxation to stimulate the electrification of end uses.

A slowdown in low-carbon technologies

Data published by the International Energy Agency (IEA) shows a 6% drop in electric vehicle sales in 2024, while heat pump sales fell by 21%. These declines indicate a slowdown in the deployment of electric technologies. Meanwhile, France recorded a historic electricity export surplus of 89 terawatt-hours (TWh) in 2024, highlighting a surplus in production that has failed to generate stronger domestic demand.

Political tensions over energy policy

Amid this sluggish trend, debates have emerged in the French Parliament over the planned development of renewable energy for 2025–2035. Some lawmakers seek to scale back the targets, citing insufficient demand to justify investment. Thomas Veyrenc, Executive Director at Réseau de transport d’électricité (RTE), stresses the strategic dimension of electrification, describing it as a tool for energy sovereignty for France and its European neighbours.

U.S. electricity consumption reached unprecedented levels in the last week of July, driven by a heatwave and the growth of industrial activity.
The New York Power Authority targets nearly 7GW of capacity with a plan featuring 20 renewable projects and 156 storage initiatives, marking a new phase for public investment in the State.
French Guiana plans to achieve a fully decarbonised power mix by 2027, driven by the construction of a biomass plant and expansion of renewable energy on its territory.
The progress of national targets for renewable energy remains marginal, with only a 2% increase since COP28, threatening the achievement of the tripling of capacity by 2030 and impacting energy security.
A Department of Energy report states that US actions on greenhouse gases would have a limited global impact, while highlighting a gap between perceptions and the economic realities of global warming.
Investments in renewable energy across the Middle East and North Africa are expected to reach USD59.9 bn by 2030, fuelled by national strategies, the rise of solar, green hydrogen, and new regional industrial projects.
Global electricity demand is projected to grow steadily through 2026, driven by industrial expansion, data centres, electric mobility and air conditioning, with increasing contributions from renewables, natural gas and nuclear power.
Kenya registers a historic record in electricity consumption, driven by industrial growth and a strong contribution from geothermal and hydropower plants operated by Kenya Electricity Generating Company PLC.
Final energy consumption in the European industrial sector dropped by 5% in 2023, reaching a level not seen in three decades, with renewables taking a growing role in certain key segments.
Réseau de transport d’électricité is planning a long-term modernisation of its infrastructure. A national public debate will begin on September 4 to address implementation methods, challenges and conditions.
The Spanish Parliament has rejected a package of reforms aimed at preventing another major power outage, plunging the national energy sector into uncertainty and revealing the fragility of the government's majority.
The U.S. government has supported Argentina’s request for a temporary suspension of an order to hand over its stake in YPF, a 16.1 billion USD judgment aimed at satisfying creditors.
The United States Environmental Protection Agency extends compliance deadlines for coal-fired power plant operators regarding groundwater monitoring and the closure of waste ponds.
Eskom aims to accelerate its energy transition through a new dedicated unit, despite a USD22.03bn debt and tariff uncertainties slowing investment.
Several major U.S. corporations announce investments totaling nearly USD 90 billion to strengthen energy infrastructure in Pennsylvania, aimed at powering data centers vital to the rapid growth of the artificial intelligence sector.
Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Consent Preferences