Die electrification is a central concept of energy transition. It describes the targeted transition from fossil fuels such as coal, gas or oil to electricity from renewable sources – particularly in areas such as heating, transport and industry. The aim of electrification is to make energy consumption more sustainable, efficient and climate-friendly.
A typical example of electrification is the replacement of a gas heating system with a heat pump. While the gas heating system burns fossil natural gas, the heat pump uses electricity, ideally from solar or wind power, to generate heat from ambient air, soil or groundwater. In this way, a house can be heated in a climate-neutral way. The potential of flexible heat pumps in the power system is also described in detail in a short study by the German Federal Heat Pump Association.
More examples:
Electrification makes it possible to push decarbonization in all sectors. The more applications are converted to electricity from renewable sources, the less CO₂ is emitted. At the same time, surpluses of electricity, e.g. from windy periods, can be used efficiently.
Benefits of electrification:
According to the Emissions Gap Report 2024 of the UN Environment Programme, industry is one of the largest energy consumers and the biggest CO₂ polluters worldwide. Many processes, in particular the generation of process heat, are still based on fossil fuels such as natural gas or oil. The electrification of industrial processes therefore offers enormous potential for reducing emissions. Through technologies such as induction heating, resistance heating or power-to-heat systems, thermal processes can be operated efficiently with electricity. Electrical energy shows its advantages particularly when it comes to high temperature accuracy, such as in the steel, chemical or food industries. Companies that electrify their production can not only improve their carbon footprint, but also reduce regulatory risks and make themselves less dependent on the volatility of fossil energy prices.
Electrification is a central lever for achieving climate neutrality – provided that the electricity used comes from renewable sources. Electrically operated systems do not cause any direct CO₂ emissions during operation and also reduce local air pollutants such as nitrogen oxides or particulate matter. This has a positive effect on air quality and health – particularly in urban or industrial regions. At the same time, electrification enables more efficient use of energy, as electric drives and heating systems often lose less energy than fossil alternatives. In combination with intelligent energy management companies can also consume electricity flexibly, save energy costs and contribute to grid stability – in particular in combination with flexible grid charges that create time-variable incentives for network-serving behavior.
Despite its benefits, electrification presents some challenges. A key issue is security of supply: Electrical processes require stable power grids with sufficient capacity. The necessary grid expansion, particularly for high-temperature processes in industry, can be costly and time-consuming. There are also investment costs for new electrical systems and the adjustment of existing infrastructures. Regulatory frameworks, such as in the area of grid connection, funding or CO₂ pricing, are also not always clear or sufficiently harmonized. Many companies also lack specialists who can technically implement complex electrification projects and operate them over the long term. New tariff models such as flexible grid charges create incentives to shift electricity consumption to times of service to the grid – a prerequisite for reconciling electrification and grid stability. For electrification to become a successful model, targeted political support, economic incentives and practice-oriented solutions are needed– particularly for small and medium-sized companies.
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