Contact

Energy

Europe’s energy transition will require higher quantities of metals. Non-ferrous metals represent the building blocks of every conceivable climate technology including batteries, clean mobility, energy-efficient buildings, solar panels, and wind turbines.

At the same time, the non-ferrous metals sector’s high electro-intensity means it is particularly susceptible to the impacts of a decarbonising EU power system.

Why it’s important

The European non-ferrous metals industry, a highly electro-intensive and price-taking sector exposed to fierce global competition, is facing an existential crisis driven by persistently high electricity prices, which remain two to three times higher in Europe than in the US, as noted in the Draghi report.

In addition, energy retail prices in the EU for industry are impacted by taxes, levies and charges, which, when combined, can account for a substantial portion of the final electricity cost.

As electricity represents approximately 30–45% of total operational costs for many installations, securing access to renewable and low-carbon electricity at globally competitive costs is essential.

 

What we are seeking

We are asking decision-makers to:

  • bringindustrial total electricity costs in the EU closer to a threshold of 50 €/MWh – as a KPI measuring the success of EU’s electrification ambition
  • Rebound EU electricity demand by supporting the restart and expansion of already-electrified industrial capacities; provide robust financial support for industrial electrification
  • Provide support mechanisms to promote long-term PPAs between renewable generators and baseload industrial consumers, starting with a solution for profile-matching cost
  • Ensure electricity suppliers allocate a fixed share of their publicly subsidised power production at production cost to industries facing international competition
  • Refrain from undermining the industrial competitiveness by adding further costs (taxes, levies and network tariffs) to the electricity bills of electro-intensive industries
  • Acknowledge limitations of industrial demand-side response which must remain voluntary and adequately remunerated
  • Implement a balanced and truly technology neutral energy policy

 

For additional information on this subject contact:

georgescu@european-metals.eu or camboulives@european-metals.eu