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What is the electrification of the economy? Everything you should know in 4 keys

Electrifying the economy is a key factor in achieving decarbonisation and meeting the European Union's emission reduction targets. But do we know what the benefits are? We will explain what electrification is and provide four simple keys.

What is electrification?

Electrification is the process of replacing fossil fuels with electricity in all sectors.

To combat climate change, the European Union has targeted achieving carbon neutrality by 2050. To achieve this, it is necessary to develop renewable energies and increase the number of vehicles, products and processes that run on electricity.

The electrification of demand involves an increase in the use of electricity by households and companies and enables a reduction in the use of technologies that emit CO2.


Why is electrification necessary to achieve decarbonisation?

Electricity produced from renewable energy is the most efficient and cost-effective solution to reduce greenhouse gas emissions.

As well as promoting electricity production based on renewable energies, decarbonisation requires the electrification of energy demand, i.e. households and businesses making greater use of electricity instead of using technologies that emit CO2.

Electricity is therefore a key energy vector to help combat climate change and protect the environment.


What are the benefits of electrification?

The main benefit of electrification is a reduction of greenhouse gas emissions in all sectors, which contributes to combating climate change. Greater use of electricity will also enable:

  • Improvements in air quality, greater use of electric vehicles and a reduction in the use of heating systems that generate greenhouse gas emissions.
  • An increase in the number of smart homes and offices. Electrical appliances to increasingly allow greater digitalisation using the latest technologies. Digitalisation not only provides greater flexibility and convenience, it also improves efficiency and reduces time and costs.
  • Savings on our bills. Renewables are the most economical source of electricity available. With an increase in generation from renewable sources, the cost on the bill paid by consumers will decrease.
  • Jobs to be generated. The 2021-2030 Integrated National Energy and Climate Plan (PNIEC) is expected to generate between 107,000 and 135.000 jobs by 2030. The change of energy model could also generate about 120,000 additional indirect jobs annually according to forecasts.
Benefits of electrification.

Benefits of electrification

1. Reduction of CO2

2. Improved air quality

3. More efficient use of energy

4. Creation of jobs

5. Saving money for consumers

6. Investment opportunities

7. Digitalisation


What are the main sectors that need to be electrified?

Renewable electricity obtained from fossil sources can replace the direct use of fuels in those sectors that are the main cause of greenhouse gas emissions:

  • Transport. Electric vehicles are three to five times more efficient than vehicles with an internal combustion engine. In Spain there are expected to be about five million electric vehicles on the roads by 2030.
  • Buildings. Heat pumps use four times less energy than oil or gas boilers.
  • Industry. Energy intensity decreases significantly with the electrification of industrial processes.
% Forecast for electrification in transport, buildings and industry.
Fuente: Eurelectric.

% Forecast for electrification in transport, buildings and industr


Transport: 1%

Buildings: 34%

Industry: 33%



Transport: 65%

Buildings: 63%

Industry: 50%

Endesa is committed to the transition of energy towards a decarbonised economy and for this we are promoting renewable energies, investing in digitalisation and promoting electrification.

Through Endesa X we are seeking to promote efficient consumption and the electrification of demand with solutions ranging from self-generation to the replacement of technological solutions that use fossil fuels with more efficient electrical solutions. This is how we are building a new energy model that is open, digital and sustainable.

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