Affordable Energy Action Plan
STRATEGY2025-02-26
Network Charges Reform:The Commission will design new tariff methodologies to incentivise grid flexibility and electrification investment, with guidance on using public budgets to lower network charges and on anticipatory grid investment, followed by a legislative proposal if needed to make the framework legally binding. [Q2 2025]
Energy Taxation Directive Revision: The Council is called to finalise the 2021 ETD revision to align energy taxation with climate policy and remove fossil fuel exemptions; the Commission will issue a recommendation to Member States on applying existing flexibilities to reduce electricity taxation across all sectors. [from ETD adoption; Q4 2025]
Citizens' Energy Package: Proposes measures to increase citizens' participation in the energy transition, including guidance to Member States on removing supplier-switching barriers, measures to reduce energy poverty, and rules enabling consumers and communities to produce, sell and consume their own renewable energy. [Q3 2025]
Long-Term Electricity Supply Contracts (PPA Support): Launches a EUR 500 million EIB pilot programme to counter-party Power Purchase Agreements for energy-intensive industries, provides guidance on contracts for difference, and adopts new rules to develop European forward markets and expand hedging opportunities for businesses. [Q2 2025 – Q4 2025]
Clean Energy and Grid Permitting Acceleration: Expands the AcceleRES implementation plan, provides guidance on innovative renewables deployment and grid acceleration areas, and will put forward legislative proposals as part of the European Grid Package to streamline environmental assessments and shorten permitting deadlines for renewables, storage and grids; also assesses licensing streamlining for Small Modular Reactors. [mid-2025; legislative proposals with Grid Package; SMR Communication 2026]
European Grid Package: Legislative and non-legislative measures to simplify TEN-E, ensure cross-border integrated planning, streamline permitting, enhance distribution grid planning, boost digitalisation, and develop effective cost-sharing mechanisms for interconnectors; includes an EIB grids manufacturing counter-guarantee package of at least EUR 1.5 billion. [Q1 2026]
Electricity System Flexibility Rules: Clarifies State aid requirements for non-fossil flexibility schemes, adopts new demand response rules to remove remaining market access barriers for storage and consumers, and consults Member States on a clean flexibility instrument based on PPAs. [Q2 2025 State aid framework; Q1 2026 demand response rules]
Retail Flexibility Remuneration Guidance: Develops guidance and standardised market-based systems to ensure consumers and industry are fairly remunerated in retail contracts for the flexibility services they provide to the electricity system. [Q4 2025]
Gas Market Task Force: Established to scrutinise EU natural gas markets and prevent commercial practices distorting market-based pricing; will consult on legislative changes to align energy and financial market rules (MiFID/REMIT), create a joint harmonised market-data database, and strengthen regulatory oversight of spot markets. [concludes Q4 2025]
EU LNG Demand Aggregation and Purchasing: Engages directly with reliable LNG suppliers to identify cost-competitive import options, proposes demand aggregation for EU companies entering tolling contracts at LNG plants worldwide, and explores longer-term contractual models including investment in export infrastructure abroad. [Q1–Q2 2025]
European Energy Efficiency Financing Coalition: Through the Coalition and in cooperation with the EIB Group, develops an EU guarantee scheme to double the energy efficiency services market for businesses and SMEs, with a blueprint for the scheme and an assessment of an EU-wide energy savings certification scheme. [Q3 2025 partnership launch; Q4 2025 guarantee blueprint]
Energy Labelling and Ecodesign Update: Updates EU energy labelling and ecodesign rules, improves market surveillance IT tools, and provides clearer compliance guidance to operators, while supporting Member States in incentivising consumers to replace old appliances with energy-efficient alternatives. [from 2025]
Energy Union Task Force: A high-level body comprising Commission, relevant EU agencies, Member States and stakeholders will examine technical and regulatory adjustments needed to enhance Energy Union governance and report regularly to the President of the Commission, the European Council, the Energy Council and the European Parliament. [2025]
Clean Energy Investment Strategy and Nuclear Illustrative Programme (PINC): Presents a strategy to mobilise private capital and close the clean energy investment gap, alongside an updated Nuclear Illustrative Programme assessing nuclear investment needs and supporting next-generation technologies. [2025]
Fusion Strategy: Proposes a dedicated EU Fusion Strategy including the creation of a Public-Private Partnership to accelerate commercialisation of fusion as a future decarbonised energy source. [2025]
White Paper on Deeper Electricity Market Integration: Sets out the Commission's vision for a fully integrated EU electricity market with a cohesive governance framework aligning national and EU-level objectives and ensuring cross-border decisions are taken at the appropriate level. [early 2026]
Electrification Action Plan: Promotes the rapid electrification of industry, transport, and heating and cooling sectors to reduce fossil fuel dependence and lower system costs, with the aim of increasing electricity's share of final energy consumption to around 32–33% by 2030. [Q1 2026]
Strategic Roadmap for Digitalisation and AI in the Energy Sector: Accelerates the rollout of EU AI solutions for grid optimisation, building energy efficiency and demand-side flexibility, while fostering AI-driven innovation and ensuring robust cybersecurity and data privacy safeguards. [2026]
Heating and Cooling Strategy: Supports decarbonisation of the heating and cooling sector through expanded heat pump deployment, waste heat recovery and improved building efficiency, reducing fossil fuel import dependence by an estimated EUR 60 billion by 2030. [Q1 2026]
Governance Regulation Revision: Revises the Energy Union and Climate Action Governance Regulation to simplify reporting, modernise NECP processes as strategic investment plans, and prepare the EU for the post-2030 energy and climate policy framework. [mid-2027]
Tripartite Contract for Affordable Energy: A cross-sectoral agreement between governments, clean energy producers and energy-intensive industry to align long-term off-take commitments, stable energy supply, and supportive regulatory frameworks, reducing investment risk and lowering costs across the energy value chain. [2025]
Energy Security Framework Revision: Legislative proposal to revise the EU's energy security regulatory framework, incorporating lessons from the 2021–2023 energy crisis to strengthen supply resilience and reduce price volatility. [early 2026]
Peak Demand Reduction Guidance: Commission guidance to Member States on designing and implementing consumer remuneration schemes to lower peak electricity demand during periods of system stress or price spikes, with TSOs activating demand-shift measures when needed. [ongoing; deployed during price spikes]
Emergency Cross-Border Capacity Coordination: Coordination with TSOs and national regulatory authorities to temporarily increase available cross-border interconnection capacities during regional price crises and to align maintenance outage planning across borders to avoid restricting electricity flows. [when necessary]
Action items (4)
Electrification Action Plan
Planned for Q1 2026.This plan will accelerate cost-effective, system-friendly electrification to lower energy costs, boost competitiveness and cut emissions. It tackles supply and demand across industry, transport and buildings, and will run in parallel with a Heating & Cooling Strategy. Delivery focuses on reliability and flexibility, expanding and digitalising grids, scaling storage and demand response, deepening cross-border integration, and encouraging new demand near clean generation. Policy levers will improve the electricity-to-fossil price ratio (i.e. energy taxation, network tariffs, removing non-energy charges) while mobilising financing, manufacturing capacity and skills along the value chain. Progress will be tracked using KPIs, including raising electricity’s share of final energy toward 32–33% by 2030.
Energy Union
Planned for Q3 2026.The EU will deepen its Energy Union to deliver affordable, clean energy through stronger governance and integration. Therefore, the Commission will launch an Energy Union Task Force, publish a White Paper on electricity-market integration, revise the Governance Regulation, and present a Clean Energy Investment Strategy, a Nuclear Illustrative Programme (PINC), and a Fusion Strategy. It will table an Electrification Action Plan, a Roadmap for Digitalisation and AI in the Energy Sector, and a Heating & Cooling Strategy to accelerate electrification, flexibility and efficiency. A revised energy-security framework will enhance stability and resilience, informed by lessons from the energy crisis.
European Grid Package
Planned for 25 November 2025.The European Grid Package will fast-track expansion and modernisation of transmission and distribution networks, deepening market integration and lowering bills. It streamlines TEN-E, accelerates permitting — including environmental assessments — and mandates integrated, cross-border planning with effective cost-sharing, focusing on interconnectors and distribution grids. It prioritises digitalisation, flexibility and efficient use of existing assets, while increasing visibility of manufacturing supply needs. An EIB “grids manufacturing package” (≈€1.5 bn) will underpin EU component capacity, and an “Energy Highways” effort will tackle critical bottlenecks. Together, the measures unlock renewables and storage, strengthen security of supply, and support electrification at least cost.
New Legislative Framework Review
Planned for Q3 2026.The Commission will modernise EU product rules to enable faster, coordinated action when risks emerge, set clear, time-bound requirements for notified conformity assessment bodies, and clarify the responsibilities of economic operators in circularity to extend product lifecycles. It will fully digitise compliance via the Digital Product Passport and harmonised digital labelling (QR-code based), replacing paper dossiers and easing SME burden. Enforcement will be strengthened in light of surging e-commerce imports and a fragmented market-surveillance landscape. A progressive rollout of the DPP (potentially included through the NLF review in Q2 2026) will anchor instant, trusted access to essential product information across the Single Market and support consistent application of EU product law.