BRUSSELS — EU energy ministers discussed plans to accelerate the shift from fossil fuels to electricity and expand electrical infrastructure across the bloc during a gathering in Dublin. European Union nations have spent over 100 billion euros ($113.5 billion) extra on energy imports since the outbreak of the Iran war.

"Times are serious," said EU energy commissioner Dan Jørgensen during the meeting of energy ministers from across the 27-nation bloc. The discussions focused on reducing reliance on external energy sources as costs rose and supplies were disrupted.

Republicans in key U.S. states have called for a ban on diesel exports to bolster domestic supply ahead of midterm elections. EU energy commissioner Dan Jørgensen said he had sent "a very clear signal" to U.S. authorities to scrap the proposed ban on diesel exports. "This, of course, shows us just how bad it is for us to be dependent, just how unsustainable it is for us to be dependent on energy sources from other places in the world," Jørgensen said.

Ireland’s minister for climate, energy and the environment Darragh O’Brien addressed the potential export restrictions during the talks. He noted that such measures would have broad economic implications beyond Europe.

O’Brien said a ban on diesel exports is "unlikely" because it would harm economies on both sides of the Atlantic. "We have to be guarded. We can’t be complacent," O’Brien said regarding the ongoing energy security challenges.

Fatih Birol, executive director of the International Energy Agency, noted the seasonal risks facing the continent. "Europe is one of the most exposed regions — if not the most exposed one — when it comes to diesel because Europe imports a huge amount of diesel and we are entering the harsh season, the winter season," Birol said.

The European Commission published plans to encourage EU governments to lower electricity taxes and speed up the shift from fossil fuels to renewable sources of energy soon after the US-Israeli attacks on Iran on 28 February. The European Commission's 'AccelerateEU' initiative, launched in April 2026, aims to increase coordination between EU countries, accelerate the transition to clean energy, and boost public and private investments in response to rising energy costs and geopolitical tensions.

The European Commission proposed an indicative electrification target of 46% by 2040, aiming to increase electricity’s share in final energy consumption, as outlined in its 2026 Electrification Action Plan. Denmark introduced the 2026 Finance Bill, which reduced electricity taxes to nearly zero, from about €97/MWh to roughly €1.1/MWh, to support energy affordability.

The 12 countries covered in the European Heat Pump Association data are Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal and Sweden. Heat pump sales in Europe rose by 17% in Q1 2026 compared to Q1 2025, driven by stable policy frameworks and financial incentives, per the European Heat Pump Association.

The European Heat Pump Association reported that around 28 million heat pumps are installed in Europe (including 26 million in the EU), with about 100 million homes still heated by fossil fuel boilers as of 2026. In Germany, a subsidy scheme has led to heat pumps being the number one heating technology being installed, according to the European Heat Pump Association. The International Energy Agency (IEA) projects that heat pumps could reduce Europe’s gas demand for heating by at least 21 billion cubic meters annually by 2030.

Why It Matters

The push to electrify Europe's energy system addresses a structural vulnerability exposed by the Iran war and the subsequent disruption of global oil flows. With EU nations spending over 100 billion euros extra on imports, the shift to homegrown green electricity aims to insulate consumers from volatile global markets and geopolitical leverage.

The scale of the transition is large, with 100 million homes still relying on fossil fuel boilers as of 2026. Accelerating the installation of heat pumps and expanding electrical infrastructure represents a fundamental change in how the bloc powers its economy, moving away from imported molecules toward domestically produced electrons.

Timeline

The European Union became highly dependent on the U.S. for direct energy imports after ending its historic reliance on Russia following its full-scale invasion of Ukraine in 2022.

Iran’s de facto closure of the Strait of Hormuz severely disrupted the flow of oil and gas shipments and sent the price of crude oil as high as $126 a barrel in late April. Estonian authorities concluded that an arson attack in mid-August on a defense company that provides military vehicles to Ukraine was an act of sabotage commissioned by Russian security services.

What's New

Additional context notes that the European Union's Energy Union strategy, first outlined in 2015, aimed to build an energy system that provides secure, sustainable, competitive, and affordable energy for consumers.

Sales of residential heat pumps jumped across Europe in the first six months of the year as the Iran war sent oil and gas prices rising. Paul Kenny, the EHPA director general, stated, "The fix? Dropping taxes on electricity and shifting them over to fossil fuels. The European Commission has made this clear – but now all EU governments must enact it, following in the footsteps of the Netherlands and Belgium."

As of 2026, 100 million homes in Europe still rely on fossil fuel boilers, with 28 million heat pumps installed across the EU, according to the European Heat Pump Association. The European Heat Pump Association was established to promote the deployment of heat pump technology across Europe, with a focus on improving energy efficiency and reducing reliance on fossil fuels.

Paul Kenny, the EHPA director general, also said, "Europe is ending its addiction to a toxic, costly drug from dodgy suppliers: gas. The sooner electricity becomes the most affordable solution, the quicker we’ll get clean."

How Sources Differ

European Heat Pump Association data reports that Belgium announced tax changes for 2026 that will cut electricity costs by 3% and raise gas costs by 3%, according to the European Heat Pump Association.

European Heat Pump Association data indicates that in the UK, electricity costs more than four times as much as gas, similar to Belgium, according to the European Heat Pump Association.

European Heat Pump Association data shows that in Romania, electricity prices are five times as high as those for gas, according to the European Heat Pump Association.