# Action Plan on Affordable Energy Canonical URL: https://digital-acquis.eu/initiative/action-plan-on-affordable-energy Entry type: initiative Source edition current through: 17 July 2026 (2026-07-17). This is not a page modification date. Status: delivered. A delivered initiative is not necessarily legislation in force. Instrument: Communication Date as recorded: 26 Feb 2025 Date kind: date Status note: full date links only to published artifact types ## Summary The Affordable Energy Action Plan seeks to lower energy costs while supporting competitiveness, security and sustainability for households and businesses. Its actions cover electricity bills and supply, gas markets, energy efficiency, completion of the Energy Union, tripartite agreements for industry, security of supply and price-crisis preparedness. The Commission presented the plan as part of the Clean Industrial Deal, and says delivery also depends on measures by EU countries. ## Sources - [Official source]() - [Official source]() ## Action items (24; complete published list) ### 1. Action item 230001 Network Charges Reform:The Commission will design new tariff methodologies to incentivise grid flexibility and electrification investment, with guidance on using public budgets to lower network charges and on anticipatory grid investment, followed by a legislative proposal if needed to make the framework legally binding. [Q2 2025] Provenance: source document doc-024, paragraph 1. Digital dimension: no. ### 2. Action item 230002 Energy Taxation Directive Revision: The Council is called to finalise the 2021 ETD revision to align energy taxation with climate policy and remove fossil fuel exemptions; the Commission will issue a recommendation to Member States on applying existing flexibilities to reduce electricity taxation across all sectors. [from ETD adoption; Q4 2025] Provenance: source document doc-024, paragraph 2. Digital dimension: no. ### 3. Action item 230003 Citizens' Energy Package: Proposes measures to increase citizens' participation in the energy transition, including guidance to Member States on removing supplier-switching barriers, measures to reduce energy poverty, and rules enabling consumers and communities to produce, sell and consume their own renewable energy. [Q3 2025] Provenance: source document doc-024, paragraph 3. Digital dimension: no. ### 4. Action item 230004 Long-Term Electricity Supply Contracts (PPA Support): Launches a EUR 500 million EIB pilot programme to counter-party Power Purchase Agreements for energy-intensive industries, provides guidance on contracts for difference, and adopts new rules to develop European forward markets and expand hedging opportunities for businesses. [Q2 2025 – Q4 2025] Provenance: source document doc-024, paragraph 4. Digital dimension: no. ### 5. Action item 230005 Clean Energy and Grid Permitting Acceleration: Expands the AcceleRES implementation plan, provides guidance on innovative renewables deployment and grid acceleration areas, and will put forward legislative proposals as part of the European Grid Package to streamline environmental assessments and shorten permitting deadlines for renewables, storage and grids; also assesses licensing streamlining for Small Modular Reactors. [mid-2025; legislative proposals with Grid Package; SMR Communication 2026] Provenance: source document doc-024, paragraph 5. Digital dimension: no. ### 6. Action item 230006 European Grid Package: Legislative and non-legislative measures to simplify TEN-E, ensure cross-border integrated planning, streamline permitting, enhance distribution grid planning, boost digitalisation, and develop effective cost-sharing mechanisms for interconnectors; includes an EIB grids manufacturing counter-guarantee package of at least EUR 1.5 billion. [Q1 2026] Provenance: source document doc-024, paragraph 6. Digital dimension: no. ### 7. Action item 230007 Electricity System Flexibility Rules: Clarifies State aid requirements for non-fossil flexibility schemes, adopts new demand response rules to remove remaining market access barriers for storage and consumers, and consults Member States on a clean flexibility instrument based on PPAs. [Q2 2025 State aid framework; Q1 2026 demand response rules] Provenance: source document doc-024, paragraph 7. Digital dimension: no. ### 8. Action item 230008 Retail Flexibility Remuneration Guidance: Develops guidance and standardised market-based systems to ensure consumers and industry are fairly remunerated in retail contracts for the flexibility services they provide to the electricity system. [Q4 2025] Provenance: source document doc-024, paragraph 8. Digital dimension: no. ### 9. Action item 230009 Gas Market Task Force: Established to scrutinise EU natural gas markets and prevent commercial practices distorting market-based pricing; will consult on legislative changes to align energy and financial market rules (MiFID/REMIT), create a joint harmonised market-data database, and strengthen regulatory oversight of spot markets. [concludes Q4 2025] Provenance: source document doc-024, paragraph 9. Digital dimension: no. ### 10. Action item 230010 EU LNG Demand Aggregation and Purchasing: Engages directly with reliable LNG suppliers to identify cost-competitive import options, proposes demand aggregation for EU companies entering tolling contracts at LNG plants worldwide, and explores longer-term contractual models including investment in export infrastructure abroad. [Q1–Q2 2025] Provenance: source document doc-024, paragraph 10. Digital dimension: no. ### 11. Action item 230011 European Energy Efficiency Financing Coalition: Through the Coalition and in cooperation with the EIB Group, develops an EU guarantee scheme to double the energy efficiency services market for businesses and SMEs, with a blueprint for the scheme and an assessment of an EU-wide energy savings certification scheme. [Q3 2025 partnership launch; Q4 2025 guarantee blueprint] Provenance: source document doc-024, paragraph 11. Digital dimension: no. ### 12. Action item 230012 Energy Labelling and Ecodesign Update: Updates EU energy labelling and ecodesign rules, improves market surveillance IT tools, and provides clearer compliance guidance to operators, while supporting Member States in incentivising consumers to replace old appliances with energy-efficient alternatives. [from 2025] Provenance: source document doc-024, paragraph 12. Digital dimension: no. ### 13. Action item 230013 Energy Union Task Force: A high-level body comprising Commission, relevant EU agencies, Member States and stakeholders will examine technical and regulatory adjustments needed to enhance Energy Union governance and report regularly to the President of the Commission, the European Council, the Energy Council and the European Parliament. [2025] Provenance: source document doc-024, paragraph 13. Digital dimension: no. ### 14. Action item 230014 Clean Energy Investment Strategy and Nuclear Illustrative Programme (PINC): Presents a strategy to mobilise private capital and close the clean energy investment gap, alongside an updated Nuclear Illustrative Programme assessing nuclear investment needs and supporting next-generation technologies. [2025] Provenance: source document doc-024, paragraph 14. Digital dimension: no. ### 15. Action item 230015 Fusion Strategy: Proposes a dedicated EU Fusion Strategy including the creation of a Public-Private Partnership to accelerate commercialisation of fusion as a future decarbonised energy source. [2025] Provenance: source document doc-024, paragraph 15. Digital dimension: no. ### 16. Action item 230016 White Paper on Deeper Electricity Market Integration: Sets out the Commission's vision for a fully integrated EU electricity market with a cohesive governance framework aligning national and EU-level objectives and ensuring cross-border decisions are taken at the appropriate level. [early 2026] Provenance: source document doc-024, paragraph 16. Digital dimension: no. ### 17. Action item 230017 Electrification Action Plan: Promotes the rapid electrification of industry, transport, and heating and cooling sectors to reduce fossil fuel dependence and lower system costs, with the aim of increasing electricity's share of final energy consumption to around 32–33% by 2030. [Q1 2026] Provenance: source document doc-024, paragraph 17. Digital dimension: no. ### 18. Action item 230018 Strategic Roadmap for Digitalisation and AI in the Energy Sector: Accelerates the rollout of EU AI solutions for grid optimisation, building energy efficiency and demand-side flexibility, while fostering AI-driven innovation and ensuring robust cybersecurity and data privacy safeguards. [2026] Provenance: source document doc-024, paragraph 18. Digital dimension: no. ### 19. Action item 230019 Heating and Cooling Strategy: Supports decarbonisation of the heating and cooling sector through expanded heat pump deployment, waste heat recovery and improved building efficiency, reducing fossil fuel import dependence by an estimated EUR 60 billion by 2030. [Q1 2026] Provenance: source document doc-024, paragraph 19. Digital dimension: no. ### 20. Action item 230020 Governance Regulation Revision: Revises the Energy Union and Climate Action Governance Regulation to simplify reporting, modernise NECP processes as strategic investment plans, and prepare the EU for the post-2030 energy and climate policy framework. [mid-2027] Provenance: source document doc-024, paragraph 20. Digital dimension: no. ### 21. Action item 230021 Tripartite Contract for Affordable Energy: A cross-sectoral agreement between governments, clean energy producers and energy-intensive industry to align long-term off-take commitments, stable energy supply, and supportive regulatory frameworks, reducing investment risk and lowering costs across the energy value chain. [2025] Provenance: source document doc-024, paragraph 21. Digital dimension: no. ### 22. Action item 230022 Energy Security Framework Revision: Legislative proposal to revise the EU's energy security regulatory framework, incorporating lessons from the 2021–2023 energy crisis to strengthen supply resilience and reduce price volatility. [early 2026] Provenance: source document doc-024, paragraph 22. Digital dimension: no. ### 23. Action item 230023 Peak Demand Reduction Guidance: Commission guidance to Member States on designing and implementing consumer remuneration schemes to lower peak electricity demand during periods of system stress or price spikes, with TSOs activating demand-shift measures when needed. [ongoing; deployed during price spikes] Provenance: source document doc-024, paragraph 23. Digital dimension: no. ### 24. Action item 230024 Emergency Cross-Border Capacity Coordination: Coordination with TSOs and national regulatory authorities to temporarily increase available cross-border interconnection capacities during regional price crises and to align maintenance outage planning across borders to avoid restricting electricity flows. [when necessary] Provenance: source document doc-024, paragraph 24. Digital dimension: no. ## Referenced entries - [Clean Energy Investment Strategy]() — status: not recorded. Source document doc-024, action item 230014: > Clean Energy Investment Strategy and Nuclear Illustrative Programme (PINC): Presents a strategy to mobilise private capital and close the clean energy investment gap, alongside an updated Nuclear Illustrative Programme assessing nuclear investment needs and supporting next-generation technologies. [2025] - [Electrification Action Plan]() — status: delivered. This plan will accelerate cost-effective, system-friendly electrification to lower energy costs, boost competitiveness and cut emissions. It tackles supply and demand across industry, transport and buildings, and will run in parallel with a Heating & Cooling Strategy. Delivery focuses on reliability and flexibility, expanding and digitalising grids, scaling storage and demand response, deepening cross-border integration, and encouraging new demand near clean generation. Policy levers will improve the electricity-to-fossil price ratio (i.e. energy taxation, network tariffs, removing non-energy charges) while mobilising financing, manufacturing capacity and skills along the value chain. Progress will be tracked using KPIs, including raising electricity’s share of final energy toward 32–33% by 2030. Source document doc-024, action item 230017: > Electrification Action Plan: Promotes the rapid electrification of industry, transport, and heating and cooling sectors to reduce fossil fuel dependence and lower system costs, with the aim of increasing electricity's share of final energy consumption to around 32–33% by 2030. [Q1 2026] - [Strategic Roadmap for Digitalisation and AI in the Energy Sector]() — status: delivered. The roadmap would connect digitalisation and AI with energy-system performance, data-centre integration and security. It proposes a model tripartite agreement for data centres, an EU rating scheme, smart-grid indicators, greater smart-meter coverage and AI models for grid management and permitting. It also envisages a framework for cross-border energy-data exchange, risk assessment for solar installations, an Energy Digitalisation Forum, a Fuel Observatory and a Better Energy Data initiative. Source document doc-024, action item 230018: > Strategic Roadmap for Digitalisation and AI in the Energy Sector: Accelerates the rollout of EU AI solutions for grid optimisation, building energy efficiency and demand-side flexibility, while fostering AI-driven innovation and ensuring robust cybersecurity and data privacy safeguards. [2026] ## Citing documents - [Commission work programme 2025 + Annex]() — status: not recorded. The 2025 work programme brings together planned legislation and policy strategies covering competitiveness, the Single Market and industrial transition. Its programme includes measures on affordable energy, startups and scaleups, savings and investment, and business simplification. Digital priorities span AI, quantum technology, electronic communications, business wallets and the space sector. The programme also identifies work on defence, preparedness, internal security and hospital cybersecurity. Skills, quality jobs, consumer protection and democratic resilience sit alongside these economic and technological measures. Each listed initiative carries an indicative timetable, and the programme distinguishes legislative proposals from non-legislative plans. Source document doc-005, action item 60007: > Action plan on affordable energy (non-legislative, Q1 2025) - [Competitiveness Compass]() — status: not recorded. The Competitiveness Compass brings together work on innovation, industrial transition and the conditions for businesses to grow in Europe. Its agenda spans startups, strategic technologies, research and investment, alongside affordable energy, cleaner industry and circular production. Measures on the Single Market, simpler rules, procurement and standardisation accompany this sectoral work. The programme also includes trade partnerships, raw-material supplies, security and preparedness. Skills, labour mobility and quality jobs connect the economic agenda with workforce needs. The programme combines strategies, legislative proposals, investment initiatives and coordination measures across these policy areas. Source document doc-019, action item 180014: > Clean Industrial Deal and an Action Plan on Affordable Energy [Q1 2025] - [Clean Industrial Deal]() — status: not recorded. The Clean Industrial Deal connects industrial decarbonisation with affordable energy, investment and demand for cleaner products. Its measures address electricity costs, permitting, grid infrastructure, state aid and finance for industrial projects. Product standards, procurement and support for circular production are intended to strengthen markets for low-carbon goods and access to raw materials. The programme also covers trade partnerships and changes to the carbon border mechanism. Skills, quality jobs and measures supporting a fair transition accompany the industrial agenda, linking changes in production with the needs of workers and communities. Source document doc-023, action item 220001: > Action Plan on Affordable Energy Q1 2025 - [Clean Energy Investment Strategy]() — status: not recorded. Source document doc-093, action item 660022: > d)Strengthen energy efficiency financing: The Commission together with the EIB Group is working on strengthening the InvestEU Sustainability Guarantee Product, managed by the EIF. This increased capacity, together with the introduction of new opportunities through co-investments, will consequently allow for further access to the product for the decarbonisation and energy efficiency of SMEs. In line with the Affordable Energy Action Plan, the Commission and the EIB Group will launch in 2026 a pilot scheme aiming at leveraging EUR 500 million of financing to also accelerate the offer and uptake of “energy efficiency as a service” models, alongside specialised investment funds and with the potential support of the InvestEU Advisory Hub. This will complement the current EIB Group support to energy services, and to decarbonisation solutions for SMEs. In the next MFF, strengthening energy efficiency is to be supported under the new European Competitiveness Fund. An energy efficiency Accelerator instrument could use ECF tools (e.g. combination of grants, repayable support, advisory services like project development assistance). It will support aggregation of investment projects, including for heating and cooling, to increase their access to capital markets, facilitating the development of a tradable energy efficiency market. The EIB Group can play a key role by proposing a consolidated offer of funding (e.g. loans, guarantees and grants), including through its own resources. Union support could be channelled through the ECF InvestEU instrument and instruments such as the Energy Efficiency for SMEs Initiative, and could take the form of repayable support, advisory support and grants. ## Current developments Latest updates from Digital Policy Alert and Global Trade Alert. No reviewed developments available; this does not establish that no developments exist. ## Associated policy priorities - [Infrastructure & Strategic Resources]() ## Broader policy context (shared priority; not a direct citation) - [Battery Booster Strategy]() — status: delivered. Battery Booster plans use Innovation Fund and InvestEU support to reinforce the European battery value chain from raw materials to cell manufacturing. Measures include EUR 1 billion in grants for electric vehicle battery-cell projects, EUR 1.5 billion in interest-free Battery Booster Facility loans, and funding of up to EUR 300 million for critical raw-material projects. It also covers strategic-project calls, investment conditions, supply-chain diversification, EU content requirements and research on battery concepts, materials and manufacturing technologies. - [Chips Act 2.0]() — status: in progress. The review will sharpen Europe’s semiconductor strategy for the AI era, addressing gaps in leading-edge capacity and ecosystem resilience. It will prioritise energy-efficient, secure AI chips; streamline State-aid pathways; improve monitoring of supply-chain vulnerabilities and technology-leakage risks; and better coordinate EU-national programmes. Leveraging the Chips Joint Undertaking and EuroHPC, it will back new fabs and advanced packaging lines and tie support to strategic projects. The review aligns with the AI Continent agenda (i.e. powering AI Factories and forthcoming Gigafactories and setting requirements for European AI semiconductors) within a renewed, more coherent EU funding framework. - [Cloud and AI Development Act (CADA)]() — status: in progress. This law will close Europe’s compute gap by tripling data-centre capacity within 5–7 years and meeting economy-wide needs by 2035, underpinning AI development and sovereign cloud services. It will harmonise cloud policy, set minimum criteria (including for a narrow set of highly critical use cases run on highly secure EU-based cloud), and streamline permitting, site designation and access to energy/water, ensuring geographically balanced rollout. The Act will spur R&I in resource-efficient data centres, enable targeted support consistent with State-aid rules, and complement AI Factories/Gigafactories and the Chips Act ecosystem. - [Digital Networks Act (DNA)]() — status: in progress. This law will build a true Single Market for connectivity by harmonising authorisations and spectrum policy, enabling cross-border services and a coordinated path to 6G. It modernises the telecom rulebook to spur investment in fibre, 5G and cloud/edge networks, integrates satellite services, and tackles market fragmentation that keeps Europe split into various national markets. It will streamline permits, clarify open-internet rules for innovative services, support copper switch-off and cloud-based network transformation, and target up to a 50% reduction in reporting burdens. A stronger EU governance model will replace patchwork oversight, boosting resilience, security and scale for operators and users. - [Energy Digitalisation Forum]() — status: forthcoming. EU digitalisation work on energy focuses on deploying digital solutions and European sovereign AI for grid optimisation, efficiency in buildings and industry, and demand-side flexibility. The strategic roadmap also addresses data centres' integration into the energy system and challenges linked to AI in critical infrastructure. It is accompanied by work on AI models for power grids and data sharing between energy and digital stakeholders. - [Energy Union Package]() — status: forthcoming. The EU will deepen its Energy Union to deliver affordable, clean energy through stronger governance and integration. Therefore, the Commission will launch an Energy Union Task Force, publish a White Paper on electricity-market integration, revise the Governance Regulation, and present a Clean Energy Investment Strategy, a Nuclear Illustrative Programme (PINC), and a Fusion Strategy. It will table an Electrification Action Plan, a Roadmap for Digitalisation and AI in the Energy Sector, and a Heating & Cooling Strategy to accelerate electrification, flexibility and efficiency. A revised energy-security framework will enhance stability and resilience, informed by lessons from the energy crisis. - [EU Critical Raw Materials Centre]() — status: forthcoming. The EU will establish the Platform to aggregate industrial demand, coordinate tenders, and secure diversified supplies for strategic value chains. Building on AggregateEU and complementing the Critical Raw Materials Act, the platform will align procurement across sectors, lower transaction costs for SMEs, and leverage EU and national de-risking tools. A dedicated EU Critical Raw Materials Centre will provide the purchasing backbone, organising joint buying for interested firms with Member States, coordinating strategic stockpiles, monitoring supply chains, and designing financial products for upstream projects in the EU and partner countries. - [EU Framework for Simplified Cross-Border Energy Data Exchange]() — status: forthcoming. The Strategic Roadmap for Digitalisation and AI in the Energy Sector, adopted by the Commission on 3 June 2026, lists as a flagship action the establishment of an EU framework for simplified cross-border energy data exchange for smart energy services and AI model training. The Commission says the core challenge is the absence of a coherent EU approach for trusted, cross-border energy data exchange. It says it will coordinate actions to streamline and simplify energy-specific data exchange in order to support cross-border smart energy services and sovereign AI, and that better exchange of energy data can help activate flexibility from electric vehicles, heat pumps, batteries and controllable demand. The roadmap says the work will build on stakeholder recommendations on data exchange for smart energy services published on 20 May. - [EU Open Internet Stack]() — status: not recorded. The Open Internet Stack Initiative will fund development of end-user applications and underlying technologies for European sovereign digital commons. It has over €40 million dedicated within two Horizon Europe calls worth €307.3 million under the 'Digital, Industry and Space' cluster. The calls also support trustworthy AI, data services, robotics, quantum technologies, photonics and virtual worlds. Businesses, public administrations, academia and other entities from Member States and partner countries can apply until 15 April 2026. - [EU Space Act]() — status: in progress. The law will establish a single, harmonised regulatory framework for the safety, resilience, and environmental sustainability of space activities across the Union. It aims to overcome the fragmentation caused by 13 divergent national space laws across Europe, ensuring a predictable internal market for space services and space-based data. The Act introduces uniform authorisation and registration rules, tailored cybersecurity and debris-mitigation obligations, and a common environmental footprint methodology. By providing legal certainty and reducing regulatory complexity, it will strengthen the competitiveness of EU space operators, foster innovation in the New Space sector, and position Europe as a global standard-setter in space governance. - [EuroHPC Amendment for AI Gigafactories and Quantum]() — status: in progress. Proposed changes to the EuroHPC Joint Undertaking would provide a legal basis for AI Gigafactories and broaden its quantum remit. The facilities would support the development, training and deployment of large AI models for researchers, public-sector users, start-ups and industry, subject to access conditions. The quantum provisions cover research, innovation, infrastructure, skills, industrial capability, competence centres and links with classical high-performance computing. - [European Critical Communication System (EUCCS)]() — status: forthcoming. The Commission will propose legislation to interconnect Member States’ next-generation critical communications used by police, civil protection, emergency medical, border and security authorities. EUCCS will set harmonised requirements for operational mobility, strong resilience and strategic autonomy, enabling secure cross-border voice/data, priority services and roaming, including satellite back-up via IRIS². It will modernise national systems, ensure interoperability and encrypted communications, and support crisis coordination from terrorism to large-scale disasters. Governance will link with the Preparedness Union’s all-hazards approach and ERCC, with EU-funded pilots building capabilities using European providers. - [European Grids Package]() — status: delivered. The European Grid Package will fast-track expansion and modernisation of transmission and distribution networks, deepening market integration and lowering bills. It streamlines TEN-E, accelerates permitting — including environmental assessments — and mandates integrated, cross-border planning with effective cost-sharing, focusing on interconnectors and distribution grids. It prioritises digitalisation, flexibility and efficient use of existing assets, while increasing visibility of manufacturing supply needs. An EIB “grids manufacturing package” (≈€1.5 bn) will underpin EU component capacity, and an “Energy Highways” effort will tackle critical bottlenecks. Together, the measures unlock renewables and storage, strengthen security of supply, and support electrification at least cost. - [European Tech Sovereignty / Open-Source Strategy]() — status: delivered. The EU Open Source Strategy positions open source as a component of European technological sovereignty, especially for public administrations. It seeks to reduce dependency on single vendors and lock-in, while making digital assets easier to discover, reuse and maintain. Planned work includes procurement guidance, operational guidance for open assets, support for open-source bodies and networks, collaboration on key shared assets, and common repository security baselines. - [RESourceEU Action Plan]() — status: delivered. RESourceEU is intended to reduce critical-raw-material supply risks through finance, faster permitting, recycling, diversification and international partnerships. A CRM financing hub aims to mobilise EUR 3 billion within 12 months, while Horizon Europe calls of EUR 593 million and EUR 100 million of blended European Innovation Council finance support its objectives. The plan also backs projects in Greenland and Germany, raw-material matchmaking, stockpiling, export-scrap measures, foreign-investment controls and standards-based markets. - [Smart Meter Regulation]() — status: forthcoming. EU requirements for smart meters are intended to give consumers timely access to consumption data and dynamic electricity-price contracts, while helping networks manage changing supply and demand. The Commission has established interoperability requirements and procedures for non-discriminatory, transparent data access to support customer switching, retail competition and consumer choice. Smart meters also give network operators better information for investment planning and infrastructure management. - [Vision for the European Space Economy]() — status: delivered. Vision for the European Space Economy proposes common technical standards, more coordinated single-market procedures and assistance for operators complying with EU rules. Delivered through the EU Space Act, measures include support for space-traffic-management services, mutual recognition of rules with third countries and strengthened space research and innovation. A long-term plan addresses multi-source supply for 47 identified critical space technologies, alongside updated roadmaps intended to strengthen the security and resilience of EU satellite and space infrastructure. --- [Reading guide and interpretation notes]() · [Methodology]()