E.ON’s Energy Playbook, unveiled in Brussels, presents a roadmap for Europe to achieve climate neutrality by 2050 while cutting energy costs by up to €1.5 trillion. As the continent’s largest distribution system operator and a provider of sustainable energy solutions for 50 million customers, E.ON leverages its extensive operational expertise to highlight more cost-effective approaches to the energy transition.
The report emphasizes that prioritizing key measures can significantly reduce costs. By optimizing investments and resource allocation, the specific cost of electricity could drop by 20%—from €119 per MWh in 2023 to €95 per MWh by 2050. The study underscores the importance of flexibility and market-driven strategies to achieve this transformation, with three critical takeaways:
- Electrification is the most cost-efficient way to cut emissions. Expanding electrification in heating and transport will increase EU electricity demand by 30% by 2035, yet strategic investments could save over €1.5 trillion by 2050.
- Grid expansion must align with renewable energy growth. A well-coordinated rollout of electricity networks is essential for the seamless integration of solar and wind energy, ensuring affordability and reliability.
- Digitalization is key to optimizing energy use. A smarter, more flexible energy system could prevent the need for 240 GW of reserve capacity, leading to €40 billion in annual savings.
E.ON’s analysis calls for the removal of barriers to rapid electrification, particularly the disproportionate taxation of electricity compared to gas. Lowering electricity levies to the EU minimum could enhance affordability and encourage wider adoption. According to the Energy Playbook, these measures could cut total energy costs for European households by up to 40%, making the transition both sustainable and economically viable. Thomas Birr, Chief Strategy Officer at E.ON: “Europe is now at a crossroads. With the Energy Playbook, we show that climate neutrality is not only possible but also economically advantageous. Together, we can now pave the way for a sustainable, carbon-neutral Europe by 2050. However, we must move away from planned approaches with detailed goals over decades and towards an agile, market-oriented, and pragmatic energy policy. At E.ON, we are leading the way in shaping a new energy system with a comprehensive program that brings together sustainability, security of supply, and affordability. This includes our extensive investments of 43 billion euros across Europe in energy transition infrastructure by 2028.”
