The transition to clean energy is reshaping Europe’s cities – from how we power our homes to how we move and build. Electrification is at the heart of this transformation, seen as a key solution to the climate crisis. Yet, as the European Union accelerates its green transition, recent events such as the April 2025 blackout across the Iberian Peninsula raise an important question: Can Europe’s energy systems handle the pressure of full electrification?

Urban Energy Demand and Infrastructure Gaps

To meet the objectives of the European Green Deal and achieve climate neutrality by 2050, alongside the goal of reducing greenhouse gas emissions by 55% by 2030 (compared to 1990 levels), the European Commission has introduced a series of directives, most notably the Energy Performance of Buildings Directive, which promotes and mandates the efficient and circular use of resources, the improvement of buildings’ energy performance, and the reduction of a building’s Global Warming Potential (GWP), a key metric for assessing emissions throughout a building’s entire life cycle.

European cities, particularly those with higher levels of energy poverty, are characterised by having many historic buildings with energy efficiencies far below the levels required to meet the established energy targets (75% of the building stock is considered energy inefficient, as noted in points 6 and 7). Given that buildings account for 36% of energy-related greenhouse gas emissions in the EU and that two-thirds of the energy used for heating and cooling still comes from fossil fuels, point 14 highlights the urgent need for a progressive phase-out of these energy sources.

It is essential to emphasise that all life-cycle emissions, particularly those from new buildings but also from major renovations and refurbishments, must be accurately assessed. This includes the selection of materials and a thorough analysis of site-specific conditions and climate factors, which are critical to the strategic placement and design of buildings.

The EU’s ambition, as stated in consideration 20, is for all new buildings to be zero-emission by 2030, and for the existing buildings to achieve zero-emission status by 2050. This goal may be reached through various strategies (consideration 22), including the integration of solar energy systems (consideration 32). Additionally, buildings must be prepared for electric vehicle integration, which will play a key role in both decarbonising and enhancing the efficiency of the electricity system (considerations 49, 50, 51).

Despite the REPowerEU initiative, energy-inefficient buildings (many of which belong to a lower class) remain highly vulnerable to energy price increases, as energy expenses constitute a major portion of household budgets (consideration 63). The Renovation Wave, supported by financial and administrative mechanisms from Member States, must therefore ensure that this transition is fair.

All the challenges that will arise with the electrification of cities must be grounded in a strong European energy independence, ensuring the stability, affordability and security of the energy grid, as well as an active state involvement in the management and implementation of the National Renovation Plans.

European Energy Dependence

In this context, the European Union has developed an Action Plan for Affordable Energy, which broadly focuses on “decreasing energy costs for citizens, businesses, industry and communities across the EU, considering the needs of all people, including vulnerable groups”.

This need arises from Europe’s strong dependence on fossil fuels and, consequently, from the price volatility of these energy sources, which has made Europe “more vulnerable to external pressure and global market uncertainty” 

Another contributing factor lies in inefficiencies and the lack of system integration within the electricity network, issues that could be addressed through improved interconnections, grid infrastructure, system integration, and increased flexibility. Additionally, operational costs and service-related charges also significantly impact overall energy prices. The full implementation of REPowerEU projects is critical for enabling Europe’s energy independence from other countries such as Russia, and must proceed with urgency, while also promoting an unprecedented expansion of renewable energy production. However, reducing energy costs and dependence alone won’t be enough. Europe also needs to modernise its energy infrastructure to prevent large-scale failures.

The Modernisation of the Grid

This Action Plan is structured around four core pillars: (i) lowering energy costs for all; (ii) completing the Energy Union; (iii) attracting investment; and (iv) preparing for potential energy crises.

The first pillar stands as a fundamental element in the construction and rehabilitation of cities, as it reflects the indirect relationship between the need for energy use and, consequently, the reduction of its cost. Therefore, the energy efficiency of buildings must be maximised (a challenge, particularly in the context of European city centres). Ultimately, this quality can enable urban buildings to achieve energy neutrality.

The Action Plan, however, outlines several projects and initiatives aimed at establishing integrated energy networks across Europe such as increasing the interconnection level of the Iberian Peninsula with the rest of Europe, the forthcoming Heating and Cooling Strategies (Q1 2026), and the Electrification Action Plan (Q1 2026), which must be implemented with the utmost speed, quality, and security to ensure the energy stability of European countries. One of the major current challenges, as reflected in the aftermath of the April 2025 blackout, concerns the connection of the Iberian Peninsula’s grid to the broader European network, as well as the development of a recovery and storage plan and a modernised energy infrastructure.

Funding Strategies

At the end of the day, it is funding that enables Member States to develop concrete and actionable plans. Within the directive referenced throughout this document, consideration 58 highlights recent initiatives aimed at increasing EU-level financing for improving the energy performance of buildings. These include the “Renovate” component of the Recovery and Resilience Facility, particularly within the REPowerEU plan, as well as the Social Climate Fund. For ordinary citizens, these policies translate into warmer homes, lower bills, and cleaner air. But the challenge lies in ensuring that no one is left behind, especially low-income households and communities dependent on fossil fuel jobs.

In addition to these funding mechanisms, “green” mortgages and “green” loans also have the potential to play a significant role in transforming the economy and reducing carbon emissions (considerations 60 and 61), namely as an incentive for the rehabilitation or renovation of existing buildings. Even with financing in place, system failures can quickly undermine progress.

The Social Impact of Energy System Failures

In April 2025, the Iberian Peninsula, Andorra (and some regions in southern France, along with parts of the European energy grid), experienced a major blackout that resulted in a widespread interruption of electricity supply.
This event, once considered an “impossible” scenario, generated instability and insecurity in the governance of the affected territories, which are aiming to achieve near-total electrification in the coming years. The instability of the energy grid and storage systems, combined with the lack of structured emergency energy recovery plans, has further reinforced public resistance in a population still largely hesitant about full electrification and household energy dependence.

Indeed, the Action Plan for Affordable Energy emerges at a somewhat ironic yet strategic moment, anticipating the urgent need for the modernisation and expansion of the European energy grid, particularly the connection between the Iberian Peninsula and the rest of Europe. This network, supported by a strong energy storage capacity capable of responding rapidly and effectively, will contribute to greater social, political, and economic stability across European cities. In my view, a key shortcoming of the plan lies in its fourth pillar (preparing for potential energy crises), which should be further developed and detailed to address and prepare for potential failures within the system itself.

Fragile Grids, Urgent Actions

In a context where the European energy grid remains fragile, particularly the Iberian energy network, there is a pressing need to investigate, modernise, and develop action plans for potential energy emergencies, as well as to invest in effective and sustainable energy storage.

This discussion and conclusion raise crucial questions: Is it possible to achieve these targets within such a short timeframe without compromising the safety and stability of cities and the European community as a whole? How can we anticipate and respond to energy emergencies like the one that occurred in such a brief period? Can the EU plans guarantee a safe and solid electrification of our cities?