The EU Action Plan for Affordable Energy

The EU Commission presented its plan to reduce energy costs on 26 February 2025. It contains proposals for short to medium-term measures to reduce energy costs in the EU. The cep welcomes the measures, but does not consider them sufficient to secure the cost competitiveness of European industry in the long term. In particular, the planned or envisaged interventions in the European gas markets are short-sighted and could weaken competition. "The key to solving the energy cost problem is instead economic incentives for better system integration of renewable energies," says cep economist André Wolf, who analysed the plan. 

The market-based measures mentioned in the action plan - including the promotion of long-term electricity supply contracts (PPAs) and flexibility markets for electricity consumers - should be concretised in the interests of the internal market and implemented uniformly by the Member States. "State loan guarantees can be an effective means of overcoming risk-related financing bottlenecks in the expansion of the electricity grid. However, it is important that the EU creates transparency regarding the criteria for granting loans and the extent of the risks assumed," emphasises Wolf. 

In the interests of market integration, cross-border expansion projects should be prioritised in future, for example through a specific transnational project of common European interest (IPCEI) for electricity grids. This would make it easier to balance out fluctuations in generation through cross-border trading if necessary. In the private and commercial sectors, consumer flexibility should be rewarded for savings at peak load times. A prerequisite, especially in countries such as Germany, is the accelerated installation of smart electricity meters that link price signals and consumption data. Price uncertainties in energy imports can be countered most effectively by a stable regulatory framework that offers a reliable environment for long-term supply contracts and new innovative procurement solutions.