On 17 July, the European Commission published its Electrification Action Plan, aiming to accelerate electrification across industry, buildings and transport by making electricity more affordable, expanding grid capacity, stimulating investment and innovation, and strengthening European clean technology value chains. It forms a central pillar of the Clean Industrial Deal and is accompanied by proposals to revise the EU Emissions Trading System (ETS). 

The Commission proposes assessing an indicative EU electrification target of 46% by 2040, almost doubling today's share of electricity in final energy consumption. According to the Commission, reaching this objective could reduce the EU's fossil fuel import bill by €260 billion annually by 2040, while improving competitiveness, energy security and resilience. 

Although primarily framed as an industrial and energy strategy, ERRIN believes that the role of regional and local ecosystems in delivering the clean energy transition will be essential. Many of the proposed actions rely on place-based implementation, regional innovation capacities and cooperation between public authorities, industry and research organisations.

The Plan places research and innovation at the centre of Europe's electrification agenda. The Commission will continue supporting breakthrough technologies through Horizon Europe, the Innovation Fund and the Modernisation Fund, while reinforcing the Strategic Energy Technology (SET) Plan. Around €2 billion under Horizon Europe 2026-2027 will support research on energy storage, smart grids, industrial electrification, heating and cooling, transport electrification and energy systems integration. 

The Plan also foresees regulatory sandboxes and living labs for vehicle-to-grid applications and stronger support for innovation in industrial electrification technologies, providing additional opportunities for regional testbeds and demonstration ecosystems. 

Among the measures particularly relevant for cities and regions are:

• support for municipal heating and cooling plans through the European City Facility, including a pilot expected to finance up to 180 local plans
• deployment of district heating and cooling systems integrating heat pumps, geothermal, solar thermal and waste heat
• expansion of electric vehicle charging infrastructure
• increased uptake of heat pumps and building renovation
• local implementation of social leasing schemes for electric vehicles and clean heating technologies

Industrial decarbonisation is another major pillar of the Action Plan. The Commission estimates that around 60% of industrial energy demand currently relying on fossil fuels can already be electrified using commercially available technologies. To accelerate deployment, the Commission plans to develop sector-specific electrification roadmaps together with Member States and industrial sectors. 

Recognising that electrification will require a significant expansion of Europe's skilled workforce, the Plan introduces measures to support vocational education, qualifications and training across the electrification value chain. It also foresees incentives for manufacturers to invest in training electricians and installers and links to the upcoming European Strategy for Vocational Education and Training. 

The Commission is also proposing the creation of a new Electrification Action Plan Alliance, bringing together national authorities, industry, energy suppliers, storage operators, clean technology manufacturers and other stakeholders to accelerate implementation across Europe. 

ERRIN's Energy and Clean Transition Working Group (WG) held a first meeting on this topic in May 2026. The WG will continue monitoring the implementation of the Action Plan throughout 2026.