China is making faster progress on electrification than other countries, while the USA risks losing momentum and several major European economies have yet to translate policy into deployment, according to a new analysis.The Electrification Competitiveness Index assesses progress in 16 countries, measuring both real-world electrification deployment and the conditions needed to support further progress. These factors indicate how prepared economies are for businesses to electrify their operations.
The analysis identifies a widespread gap between policy and implementation, with enabling conditions generally more advanced than actual electrification deployment. Developed by We Mean Business Coalition with support from RMI, the Index covers Australia, Brazil, China, Ethiopia, France, Germany, India, Indonesia, Italy, the Philippines, Poland, South Africa, South Korea, Spain, the UK and the USA.
Electrification, combined with clean power, can reduce reliance on fossil fuels, strengthen energy security, limit exposure to volatile fuel prices, support economic growth and productivity, cut emissions and improve health through cleaner air. It is also expected to be a key focus at COP31.
The Index groups countries into four categories:
Solid foundation – China, France and Spain: These countries combine relatively strong electrification deployment with favourable enabling conditions. China has the highest deployment score, supported by coordinated grid investment, industrial policy and incentives. France and Spain perform well in grid performance and clean power shares. In all three countries, electricity prices are more competitive relative to gas than in most other economies assessed.
Potential for take-off – Germany, India, Italy, Poland and the UK: Enabling conditions are stronger than actual deployment. The UK has the largest gap between policy and delivery. Electricity costs around five times as much as gas per unit of energy for UK industry, while Germany faces a grid connection backlog measured in hundreds of GW.
Risk of stalling – the USA, Australia, Brazil, Ethiopia and South Korea: Electrification deployment has passed the halfway mark, but enabling conditions remain below the index median. In the USA, federal policy reversals and grid bottlenecks could slow progress. More than 2 TW of generation and storage capacity is waiting in grid connection queues, compared with approximately 1.3 TW of existing generating capacity.
Early-stage adoption – Indonesia, the Philippines and South Africa: These countries score below the halfway mark for both deployment and enabling conditions. Clean power accounts for 18% of electricity generation in Indonesia and South Africa and 23% in the Philippines. Grid investment in all three countries is below 0.4% of gross domestic product, compared with an average of 0.65% across the countries assessed.
