According to Eurofer, rapidly and effectively reducing electricity costs is critically important both for accelerating the decarbonization of the steel sector and for strengthening Europe’s international competitiveness.
Eurofer emphasized that increasing the share of fossil-free electricity consumption would not only support progress toward climate neutrality but also contribute to the EU’s strategic industrial autonomy targets. To achieve this, electricity-related costs must be substantially and swiftly reduced. The association stated that this objective will require a broad set of policy measures — ranging from lowering wholesale market prices to effectively decoupling fossil fuel prices from electricity prices in long-term contracts.
The statement also highlighted the importance of enhancing transparency around the removal of fossil fuel-based power plants from the merit order in short-term markets. Eurofer noted that such transparency is essential for both consumers and investors, as it allows them to track whether new generation capacity is effectively exerting downward pressure on prices.
Eurofer further underlined the need for timely assessment of alternative market design models that reflect the EU’s rapidly changing energy landscape. In this context, the forthcoming Action Plan should include “consumer-focused and bold” measures to support the transformation of the European steel sector.
The association concluded that improving energy cost conditions will unlock investment in low-carbon steel production and reinforce the sector’s global competitiveness, making the EAP a strategic opportunity for EU industry.
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