High energy costs are hurting EU citizens and businesses. The Affordable Energy Action Plan sets out concrete short-term measures to lower energy costs for citizens, businesses, industry and communities across the EU, complete the Energy Union, attract investments, and be better prepared for potential energy crises.
This will allow for overall estimated savings of €45 billion in 2025, with a progressive increase of up to €130 billion annually by 2030, and €260 billion annually by 2040.
Lowering energy costs to provide immediate relief to consumers
To make electricity more affordable, the Action Plan combines measures to lower energy bills in the short term with cost-saving structural reforms that will reinforce the EU’s energy system and make it more resilient against potential future price shocks.
Crucially, it addresses all three price components of energy bills, notably energy supply costs, network charges, and taxes and levies, in order to be as effective as possible.
Supporting renewable energy infrastructure
To ensure that electricity bills are not dictated by high and volatile gas prices, the Commission will also bring about significant benefits for consumers by supporting a broader uptake of energy efficiency solutions, which can lead to savings of up to €162 billion per year in 2030. Given that the increase of renewable energy is key to lowering prices, the Commission will keep supporting Member States to bring more and faster renewables, and to roll out necessary grid infrastructures.
Being better prepared for potential crises
Ensuring secure EU energy supplies is critical for our economic resilience, continued access to affordable energy, and avoiding extreme price volatility. A resilient energy system must be able to withstand potential supply disruptions resulting from cyberattacks or extreme weather events, which threaten affordability. The Commission will update the EU energy security framework to address potential threats.
It will also step up preparedness for potential price crisis by making the EU's energy system more resilient to external price shocks with an increased share of home-grown renewables, more integrated markets, and better supervised gas markets.
The Action Plan is a key component of the Clean Industrial Deal, which outlines concrete actions to turn decarbonisation into a driver of growth for European industries. Besides lowering energy prices, the Clean Industrial Deal aims at creating quality jobs and the right conditions for European companies to thrive.
Related links
Press release on the Affordable Energy Action Plan
A new plan for Europe's sustainable prosperity and competitiveness
- Publication date
- 26 February 2025
- Author
- Directorate-General for Communication
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