Electrification and energy efficiency must go hand in hand

Today, the European Commission presented its Electrification Action Plan, setting out measures to reduce the EU's reliance on imported fossil fuels, with a focus on accelerating cost-effective electrification in transport, industry and buildings. APPLiA has issued the following statement in response.

The Plan rightly recognises that electrification is central to Europe’s competitiveness, energy security and decarbonisation. Today, electricity still accounts for only around 23% of the EU’s final energy consumption, highlighting the need to accelerate the electrification of key sectors. To deliver on this ambition, electrification and energy efficiency must go hand in hand.

Home appliances are already making Europe’s electricity system smarter. Today’s energy-efficient and connected appliances can respond to grid signals, shifting electricity consumption to times when renewable energy is abundant and electricity is cheaper. By providing demand-side flexibility, they help reduce peak demand, lower system costs and support the integration of growing shares of renewable energy. Analysis shows that combining energy efficiency, heat pumps and smart energy management could reduce seasonal peak electricity demand by up to 39% by 2030, easing pressure on electricity grids while delivering savings for consumers. 

To unlock this potential at scale, Europe needs an electricity system that is fit for the future. “Consumers should be able to benefit from dynamic electricity markets, interoperable digital solutions and the infrastructure needed for smart appliances to participate in flexibility services,” said Matteo Rambaldi, APPLiA’s Senior Energy Policy Director. Investing in a modern, consumer-centred electricity system is essential to maximise the value of efficient appliances and accelerate cost-effective electrification.

The success of the Electrification Action Plan will also depend on coherence across EU legislation. “Policies that support electrification should not be undermined by measures that slow down the deployment of highly efficient technologies. In this regard, the implementation of the F-gas Regulation should be aligned with the EU's electrification objectives,” continued Rambaldi. Restrictions that limit the availability of refrigerants before suitable alternatives are widely available risk delaying the rollout of efficient technologies such as heat pumps, ultimately slowing electrification and increasing costs for consumers.

A successful electrification strategy must therefore combine energy efficiency, smart demand-side flexibility and a coherent regulatory framework. Home appliances are not simply electricity consumers, they are an essential part of Europe's clean, flexible and affordable energy system.