Industrial Electrification 2024

IntroductionIndustrial Electrification: Strategies and Policies for EuropeDecember 2024 Electricity’s share in final energy consumption is projected to rise from 20% today to over 50% by 2050 based on a net zero scenario.1 Electrification offers a major opportunity to cut emissions and improve efficiency in industrial processes, especially low- to medium-heat processes (up to 500ºC), which account for about half of all industrial carbon emissions.However, much of Europe’s industrial electrification potential remains untapped. Developing a clear and compelling business case will elevate the investment opportunity for business leaders, realizing the potential of electrification in different sectors (see Figure 1). 100200300400500600700800 0 Final energy demand not yet electrified 90% additional technical electrification potential500100015002000250030003500 0Denmark Germany France Netherlands Spain Italy Poland EU-2810%20%30%40%50%60% 0Electrification penetration potential, by region (% of final energy demand) Already Electrification potential Iron & steel Chemical & petrochemical Non-ferrous metal Non-metalic minerals Paper, pulp & printingFood, beverages and tobacco OthersTechnical potentials for direct electrificaiton in the EU-27 based on 2019 energy demand Electrification demand in 2019 Electrification potential from 2035Electrification potential from 2025 Electrification potential from 2030Remaining fuel demand10830729202 166 60 64114 111210 104263 320287 100105 10827242 366 9331290412208 102 11Twh TwhBy industrial sector Total 158Comparison of realized electrification potential across various industries FIGURE 1 Source: Schneider Electric Sustainability Research Institute Source: Fraunhofer ISI (2024): Direct electrification of industrial process heat. An assessment of technologies, potentials and future prospects for the EU. Study on behalf of Agora Industry.