A European Central Bank Blog post assesses Europe’s progress in reducing its exposure to imported fossil fuels and argues that cleaner electricity generation must be matched by wider electrification of transport, heating and industry. Renewables generated a record 47% of European Union electricity in 2024, but electricity still represents only about 23% of final energy use, broadly unchanged over the past decade and well below the indicative 46% target for 2040. The analysis links this gap to continued exposure to volatile oil and gas prices, noting that the EU spent EUR 336.7 billion on imported energy products in 2025 and an additional EUR 27 billion on fossil fuel imports since the war in Iran began. It says deeper investment in grids, storage and interconnection is needed to support electrification, which could reduce the frequency and persistence of imported energy shocks affecting inflation and monetary policy.
European Central Bank2026-08-07
European Central Bank highlights Europe’s electrification gap and exposure to fossil fuel price shocks
A European Central Bank Blog post says Europe must extend electrification beyond power generation to reduce its exposure to imported fossil fuel shocks. Renewables supplied 47% of EU electricity in 2024, while electricity accounted for only about 23% of final energy use against an indicative 46% target for 2040. Greater grid, storage and interconnection investment would support the transition and limit energy-driven inflation pressures.