Realising Europe’s Clean Energy Transition: A Local and Regional Response to the Electrification Action Plan

Electrification is central to Europe’s energy future, and Regions and their Energy Agencies have long been at its forefront as a means to provide affordable, stable and homegrown energy to their Cities and Regions. It is from this experience of delivering the transition on the ground that we analyse the Electrification Action Plan.

A Welcomed Plan That Must Now Deliver 

We welcome the Electrification Action Plan, its electrification target, its commitment to phase out fossil fuel subsidies, accelerate the deployment of flexibility solutions in electricity systems, speed up the implementation of the Renewable Energy Directive (RED), and promote social leasing schemes for batteries. However, these ambitions and commitments must be matched by action. Without a clear implementation roadmap, binding milestones, and dedicated long-term funding, these objectives risk remaining political intentions rather than delivering tangible change on the ground. 

As the Action Plan notes, energy efficiency and flexibility work synergistically to enable electrification. Improving the efficiency of energy demand reduces the overall needs of the system while generating co-benefits such as more comfortable homes and more competitive businesses. As buildings account for around 40% of final energy consumption in the EU, their renovation and electrification will remain one of the main avenues for meeting the electrification target of 46% by 2040. Flexibility measures, in turn, not only allow for better peak demand management but are a basic requirement for the decentralisation of electricity production. Local and regional authorities must therefore be given a greater role in planning, so that increases in production can be aligned with infrastructure needs. 

Through their One-Stop-Shops, Energy Agencies have led the effort to improve the efficiency of public and residential buildings, optimise companies’ production processes, support renewable energy communities, and promote decarbonised heating and cooling solutions. These efforts go hand in hand with electrification, since demand-side adjustments enable a faster and more affordable transition for all energy users. 

We support the recognition of skills development through the Union of Skills. Yet the Action Plan overlooks one of the key actors responsible for delivering the energy transition: local and regional authorities. Regional Energy Agencies help policymakers, education and training providers as well as social partners identify the skills and competences required by young people and workers to support the transformation of the EU economy through the uptake of net-zero technologies. They also provide hands-on practical training and guidance for installers and technicians.  The Action Plan should replicate and scale up these initiatives through targeted support to build and retain the skills and capacities required for effective implementation. 

Heating and Cooling: A Strategy Is Missing 

We support the Commission’s intention to double the heat pump installation rate by 2030 compared to 2025, and its backing for District Heating Networks, including the elements designed to provide investment certainty and a derisking framework. We appreciate the recognition provided to the European City Facility as a leading EU initiative which empowers cities and municipalities through small seed funding to develop investment concepts that drive local energy efficiency and renewable energy projects. The first cohort of 330 cities and local authorities supported by the EUCF triggered a combined €31 billion in investments planned for sustainable energy projects across Europe. This initiative can indeed turn municipal heating and cooling plans into investment plans, but this support should be made scaled-up to match the Action Plan’s ambitions. Dedicated measures should also help municipalities develop these plans in the first place and integrate them into existing spatial plans for consistent implementation. Supporting 1,000 municipalities is a welcome start, but it represents only around 1% of EU municipalities and would require a matching increase in the funding available through the European City Facility. 

We regret the absence of a comprehensive and detailed heating and cooling strategy. Heating and cooling account for around half of the EU’s energy consumption and remain heavily reliant on fossil fuels therefore making the sector a major source of greenhouse gas emissions. While efforts to decarbonise H&C have begun, progress remains limited. Our experience shows that successful energy transitions are built on a diverse mix of RES and related technologies tailored to local contexts. This is why, while we strongly support the electrification agenda, we believe it must be embedded within a broader, integrated energy system where spatial planning and flexibility are central. Alongside electrification, heating and cooling (H&C) technologies leveraging solar thermal energy, bioenergy and geothermal all have an essential role to play. Europe’s energy future will be flexible and based on a complementary mix of energy sources, each contributing according to its strengths. 

Electrification as a Means, Not an End 

We believe that electrification is not a goal in itself. It must be taken as a first step towards fully phasing out our dependency on fossil fuels. Building on the efforts made since the REPowerEU Roadmap, we have proven that when dephasing fossil fuels is a political priority, there is a way. Regional and Local Energy Agencies remain steadfast and ready to deliver the solutions for the EU to fully embrace energy independence.