Press releases » Energy-intensive industries set out demands for affordable electricity in the EU
Energy-intensive industries set out demands for affordable electricity in the EU
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Brussels, 24 February 2026 - Europe’s energy-intensive industries have set out a series of proposals to ensure that the EU’s upcoming Electrification Action Plan delivers on its objectives to stimulate and boost electricity consumption in industry. In a joint position paper, industries warn that persistently high electricity prices risk undermining industrial competitiveness and decarbonisation efforts. They call for a policy framework that will enable EU industry in pursuing decarbonisation and industrial competitiveness.
Energy-intensive industries employ around 2.6 million people across the EU and underpin critical and strategic value chains. Yet, years after the energy price crisis, investment in electrification remains stalled and the competitiveness gap with third countries widened. Electricity costs in Europe continue to be structurally high and volatile, contributing to plant closures, reduced output and delayed decarbonisation investments.
Recent data show that EU electricity demand barely increased in 2024, highlighting a growing gap between climate ambition and economic reality. The industries stress that the challenge is not only a lack of available technologies, but mainly the absence of affordable and predictable electricity supply.
Key demands for the EU’s Electrification Action Plan
To make electrification work in practice, the Alliance of Energy Intensive Industries call on the European Commission to ensure that the Electrification Action Plan, expected to be published in May 2026, delivers on a number of priorities including:
1. Set a competitive benchmark of €50/MWh for total electricity costs for industry;
2. Guarantee exposed industries access to cost-based electricity;
3. Maintain the EU’s Emissions Trading System indirect cost compensation beyond 2030;
4. Invest in grids while keeping network tariffs for industry at a minimum;
5. Ensure the short-term electricity market works for European industry by carrying a full assessment by June 2026;
6. Speed up the realisation of the EU Single Market for Energy by increasing interconnectivity and maximising cross-border trading capacity;
7. Create the enabling conditions to invest in industrial electrification, including OPEX support, rather than setting electrification targets;
8. Incentivise system flexibility, promoting the contribution of all renewable and low-carbon energy sources.
The Joint Position Paper on the EU Electrification Action Plan is available here.
The Alliance of Energy Intensive Industries brings together European industry associations representing sectors with high energy use. The co-signatories from the Alliance include:
Contact
David French, Spokesperson and Head of Communications, +32 2 738 79 35, (d.french@eurofer.eu)
About the European Steel Association (EUROFER)
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federation of Turkey, Ukraine and the United Kingdom are associate members.
The European Steel Association is recorded in the EU transparency register: 93038071152-83.
About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €215 billion and directly employs around 298,000 highly-skilled people, producing on average 146 million tonnes of steel per year. More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.
Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible. Steel is 100% recyclable and therefore is a fundamental part of the circular economy. As a basic engineering material, steel is also an essential factor in the development and deployment of innovative, CO2-mitigating technologies, improving resource efficiency and fostering sustainable development in Europe.
Energy-intensive industries (EIIs) provide direct employment to around 2.6 million people in the EU and represent the foundations of critical and strategic value chains for the EU economy and society. The current economic and energy outlook of the European Union is making investments in electrification and the continued business operation of our sectors at serious risk, should the energy-cost challenge not be solved.
Brussels, 20 February 2026 – EU steel exports to the United States fell by 30% in the second half of 2025 compared to the same period in 2024, after the imposition of 50% tariffs according to new Eurostat data. The expansion of the U.S. tariff regime to include downstream steel-intensive products, such as machinery and equipment, is expected to amplify its impact on both EU steel producers and their customers. The European Steel Association (EUROFER) said the figures underscore the need for any EU-US trade agreement to be fair, balanced and enforceable.
Joint Industry Statement
The European Steel Association (EUROFER)
172 Avenue de Cortenbergh
1000 Brussels
Belgium
Email: mail@eurofer.eu
Phone: +32 (0) 2 738 79 20
