Electrification with wind power will bring Europe to net zero CO2
10 June 2021 | Mitigation
Electrification is the most cost-effective way to decarbonise Europe’s economy according to a report from ETIPWind and WindEurope out today. Wind energy will lead the process: the EU sees it being half of Europe’s electricity by 2050. With the right investments in grids and technology, the combined rate of direct and indirect electrification will be 75% of Europe’s energy demand. And with further cost reductions in wind energy, a net-zero energy system will cost no more than our energy system costs today.
ETIPWind (the European Technology and Innovation Platform on Wind) and WindEurope have published a new report that shows that deep decarbonisation of the economy is possible and affordable. A future net-zero system will cost no more as a share of GDP than our energy system costs today: 10.6% of GDP. And in broader societal terms it’ll be significantly cheaper when factoring in the costs of externalities such as air pollution, water consumption and land use – plus the economic impacts of climate change.
Adrian Timbus, ETIPWind Chairman, said: “Wind energy can help electrify 75% of Europe’s energy demand and thereby deliver climate neutrality by 2050. But we must prioritise the development of the necessary technologies: next generation onshore and offshore turbines, electrification solutions for transport and for industry, and electrolysers for renewable hydrogen.”
Electrification – the most cost-effective way to decarbonise Europe
Direct electrification, complemented with the indirect electrification of harder-to-abate sectors, is the most cost-effective and energy efficient way to cut energy sector emissions to net-zero by 2050. In 2050 electricity will meet about 75% of final energy demand. Direct electrification will account for 57% and indirect electrification through hydrogen and its derivatives for another 18%. That’s compared to today’s electrification rate of 25%.
Most sectors of the economy can electrify their power and heating needs with established and commercially available technologies. Industry could directly electrify 76% of heat and power. For higher rates of electrification, new technologies such as e-crackers will be needed. Some industries, including textiles, non-ferrous metals, ceramics, glass, food, paper and pulp, will even reach 100% electrification. Other industrial sectors such as cement, chemicals, steel, and refineries are harder to electrify. They will need a combination of direct electrification and the substitution of fossil fuel feedstocks with renewable hydrogen and its derivatives.
Direct electrification will be the preferred decarbonisation solution for individual road transport, short distance shipping and rail. It will also play a role in commercial road transport. The report estimates that electric vehicles will make up 50% of the passenger vehicle fleet in the late 2020s and 50% of the commercial vehicle fleet by 2031. Heat pumps will be the key driver in electrifying the building sector.
But Europe will struggle to make the necessary progress in electrifying mobility and heating without the right regulatory frameworks and incentives. Europe also needs to build charging infrastructure and refuelling stations for EVs and fuel cell trucks. Combining charging infrastructure and wind energy deployment will potentially lead to significant savings on grid investments and congestion management. The report also calls for sectoral CO2-reduction targets, an effective carbon pricing mechanism for mobility and heating and a ban on internal combustion engine sales by 2040.
Giles Dickson, WindEurope CEO, said: “The EU must ruthlessly prioritise future-proof technologies if it wants to be climate-neutral by 2050. We’ve less than 30 years to build a net-zero energy system. The technologies for direct electrification and renewable hydrogen production are here. Now we need the right regulations to scale them up. The EU ETS, Energy Taxation Directive and State Aid Guidelines can unlock significant investments with the right tweaks in the Fit-for-55 package. We’ve got to sort out the permitting. Contracts-for-Difference and technology-specific auctions will also play a crucial role. And energy consumers need to be able to combine them with corporate PPAs. Industrial consumers are knocking at our door, wanting to decarbonise with wind. Let’s make it a demand-driven energy transition.”