The European Steel Association (Eurofer) has announced that following the completion of public consultations on the EU's Electrification Action Plan (EAP), they expect to adopt a comprehensive strategy in early 2026 aimed at restoring access to affordable electricity for industrial sectors.
According to Eurofer, rapid and effective reduction of energy costs is crucial both to accelerate the decarbonization of the steel sector and to strengthen Europe's international competitiveness.
Eurofer stressed that increasing the share of electricity consumption without the use of fossil fuels will not only support progress towards climate neutrality, but will also contribute to the achievement of the EU's strategic goals in the field of industrial autonomy. To achieve this goal, it is necessary to significantly and quickly reduce energy costs. The Association stated that achieving this goal would require a wide range of policy measures, from lowering wholesale market prices to effectively separating fossil fuel prices from electricity prices in long—term contracts.
The statement also highlights the importance of increasing transparency regarding the exclusion of fossil fuel-powered power plants from the list of "merit" in short-term markets. Eurofer noted that such transparency is important for both consumers and investors, as it allows them to monitor whether new generating capacities are exerting effective downward pressure on prices.
Eurofer also stressed the need for a timely assessment of alternative market building models that reflect the rapidly changing EU energy landscape. In this context, the upcoming action plan should include "consumer-oriented and bold" measures to support the transformation of the European steel sector.
The Association concluded that improving energy prices would attract investment in low-carbon steel production and increase the global competitiveness of the industry, making the Eastern Partnership a strategic opportunity for the EU industry.
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