Europe can significantly reduce its dependence on imported fossil fuels and lower power prices through accelerated electrification and clean energy build-out, according to a new analysis published today by CIP. The required investment is equivalent to the price premium paid for fossil fuel imports today.
COPENHAGEN, Denmark, April 23, 2026 (GLOBE NEWSWIRE) --
The closure of the Strait of Hormuz has highlighted that Europe's continued dependence on fossil fuel imports comes with a geopolitical price premium. Today, imported fossil fuels account for around 40% of Europe's energy demand, at an estimated annual cost of approximately EUR 250 billion.
A new report, 'Charging Ahead - A Roadmap for an Electrified, Competitive and Resilient European Energy System', published today by Copenhagen Infrastructure Partners (CIP) outlines how accelerated electrification and a renewable-led energy system can fundamentally strengthen Europe's energy security and competitiveness, while lowering power prices and reducing emissions. The report also outlines actions needed from legislators and decision makers to achieve this goal.
A Competitive & Resilient European energy system is within reach
Together with Ea Energianalyse, CIP has built an integrated energy system model to analyse how Europe's energy system could evolve towards 2050 under different scenarios, outlining different development pathways and strategic choices.
The analysis shows that by replacing imported fossil fuels with homegrown, clean energy, by 2050 Europe can:
- Reduce fossil fuel imports by around 80%
- Reduce power prices by up to 40%
- Supply 95% of electricity from domestic clean power sources
This reflects the combined effects of electrification, large-scale renewables build-out, and greater system flexibility in a realistic Competitive & Resilient scenario.
Commenting on the findings, Martin Neubert, Partner and COO at Copenhagen Infrastructure Partners, says: "Europe does not have to choose between affordability and energy security. Electrification fundamentally changes how the energy system operates, so by replacing imported fossil fuels with domestic renewable energy, Europe can reduce its exposure to global price volatility while bringing down power prices. As an added benefit, emissions are reduced as a direct consequence of the shift."
Gas will play a smaller role in price-setting
Europe is structurally exposed to imported fossil fuels and, therefore, geopolitical volatility. Today, gas prices determine the price of electricity roughly 60% of the time in the EU. This carries a significant cost, as gas prices in the EU are 2-3 times higher than in the US.
Realising the shift towards local, clean power depends on accelerated investments in energy infrastructure, particularly grids and system flexibility. At around EUR 210 billion in annual investments through 2050, the cost to realise a competitive and resilient energy system is on par with the estimated EUR 250 billion Europe spends each year on fossil fuel imports.
Grid investments are needed fast
Electricity infrastructure is not on track to meet Europe's ambitions, and grid build-out is a major bottleneck. Europe will need to invest around EUR 2.9 trillion in grid infrastructure by 2050, approximately EUR 120 billion per year, to support electrification and integrate clean energy at scale.
Private investors are ready to play their part but mobilising private capital to unlock grid build-out and clean energy production at scale requires political action and clear, investable frameworks. The report includes 16 concrete policy recommendation. Three headline priorities for policy makers are to:
- Safeguard electricity market design and use targeted tax and tariff reforms to increase competitiveness of clean energy versus fossil fuels.
- Leverage private capital and knowhow to meet investment requirements.
- Incentivise grid operators to invest ahead of demand to proactively address congestions costs.
Read the full report here https://copenhagen-infrastructure-partners.euwest01.umbraco.io/media/wfppzn23/cip-2050-rapport-2026.pdf
Notes to Editors
About the report:
'Charging Ahead - A Roadmap for an Electrified, Competitive and Resilient European Energy System' is new report by Copenhagen Infrastructure Partners (CIP) analysing how Europe's energy system could evolve towards 2050. The analysis is based on a bottom-up energy system model that optimises Europe's electricity, hydrogen, and heating systems on an hourly basis. The model is developed together with EA Energianalyse.
The report explores different scenarios to assess how policy choices, investment levels and infrastructure development affect energy affordability, resilience and decarbonisation.
About Copenhagen Infrastructure Partners (CIP)
Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) is a global fund manager and leading investor in energy infrastructure. CIP builds value that matters by developing and constructing critical infrastructure projects that shape the future of energy. Through its funds, CIP invests in power generation (solar, wind and geothermal), energy storage, transmission and distribution, advanced bioenergy, low-carbon fuels and carbon capture.
With 15 funds currently under management, CIP is trusted by over 200 of the world's largest and most sophisticated institutions, having raised EUR ~37 billion to date. CIP has projects in more than 30 countries, with presence on the ground through a network of +2,300 professionals. For more information, visit www.cip.com
For media inquiries, please contact: Louise Wendelbo, Head of Press, Copenhagen Infrastructure Partners lowe@cip.com // +45 28 44 77 56
