Energy measures to be announced before the end of the year could boost the EU’s GDP by 1% by 2030, adding €190bn to the economy, according to EU Climate Action and Energy Commissioner Miguel Arias Cañete.

By 2030 half of all electricity generated in Europe will be renewable, the commissioner adds, and by 2050 electricity will be entirely carbon-free.

The renewables directive is set to focus on generating conditions in which renewables can meet these goals.

“Our energy system is undergoing a revolution which will change the way we consume and produce energy,” Cañete said, “and future-proof our economy. But to take this revolution forward we need to go much faster and much further.”

“The vision we have is of electricity markets themselves sending the right price signals for the investment needed to ensure secure supplies and drive the energy transition,” the commissioner added. “We have already done part of our homework by making proposals on how to strengthen the carbon price signal by revising the Emission Trading Scheme (ETS).”

Electricity markets will therefore undergo a technological revolution by allowing consumers to become active players in the market, responding to price signals and choosing when energy is used. When renewables are producing electricity, this could lead to cheaper energy use for all.

“About €17bn will be directed towards energy projects with a vast majority of projects targeting renewables, energy efficiency and smart meters deployment,” Cañete continued.

“Businesses have a lot to gain through better demand-side management. The more the market will reward demand-side flexibility, the more opportunities there will be to exploit that and drive down their energy bills.”

The new measures will also herald business opportunities with rising prospects for small and medium-sized electricity generation.