Commission Brings Relief to European Consumers and Businesses with Action Plan to Save €260 Billion Annually by 2040
The EU is at a crucial turning point for its competitiveness, decarbonisation, and energy security. Structurally high energy costs are placing a burden on citizens and businesses, making swift action imperative. In response, the European Commission has introduced the Affordable Energy Action Plan, a key element of the Clean Industrial Deal, designed to reduce energy costs, complete the Energy Union, attract investments, and enhance preparedness for potential energy crises.
This Action Plan is set to bring immediate relief to households and industries struggling with high energy costs, with projected savings of €45 billion in 2025, rising to €130 billion annually by 2030, and reaching €260 billion per year by 2040.
By accelerating the deployment of renewable energy, improving market integration, and reinforcing interconnections, the Plan aims to tackle Europe’s reliance on imported fossil fuels and improve energy efficiency. It builds on the recent reform of the Electricity Market Design, the REPowerEU Plan, and the Fit for 55 legislative package.
Key measures include:
Boosting clean energy investments to reduce reliance on volatile fossil fuel markets.
Enhancing electricity market integration to deliver cost savings for consumers and businesses.
Reducing permitting times for renewable energy projects and infrastructure development.
Bringing transparency and fairness to gas markets to ensure stable energy prices.
Consumers already benefit from approximately €34 billion in annual savings due to the EU’s internal energy market. Further integration could raise these savings to €40-43 billion per year by 2030, ensuring a more competitive and sustainable energy future for Europe.