Europe’s push to electrify its economy is moving too slowly, International Energy Agency chief Fatih Birol has warned, calling the lag a “major mistake” as the bloc tries to reduce exposure to imported oil and gas.
Birol said the EU should have moved faster after the 2022 gas crisis to achieve energy independence, putting electricity at the centre of its industrial and security strategy. The warning, adds pressure on European governments already balancing high power costs, grid bottlenecks and pressure from manufacturers.
The IEA has been making the same case in its recent analysis. The agency says about 70% of EU electricity generation already comes from domestic, low-emissions sources, but industry, buildings and transport still get less than a quarter of their final energy from electricity. Around two-thirds of end-use energy consumption still relies on fossil fuels, and the EU imports more than 80% of those fuels.
Markets are watching because the shift could affect consumers and industry in different ways. Faster electrification can reduce exposure to fuel price shocks, but it also requires grid upgrades, cheaper electricity, heat pump adoption, more electric vehicles and policy support for households facing higher upfront costs.
The IEA has said the current energy shock has strengthened the case for electrification. Electric car sales in the EU rose about 30% in the first four months of 2026, while heat pump sales across 11 key European markets rose 17% in the first quarter.
Birol has framed the issue as part of a wider security test. “We are in the midst of the largest energy security crisis the world has ever faced,” he said in May.
