A new Electrification Competitiveness Index finds China pulling ahead, the US at risk of losing momentum, and several large European economies yet to turn policy into delivery. Developed by the We Mean Business Coalition with support from RMI, the electrification index assesses 16 countries, including India, which sits in a group described as having “potential for take-off”.
The index looks at two things separately: how much electrification is actually happening on the ground (deployment), and whether the conditions for further progress are in place (enablers).
What the electrification index measures
The analysis uses 52 indicators covering grids and power markets, road transport, industry, buildings and cross-cutting readiness. The 16 countries assessed are Australia, Brazil, China, Ethiopia, France, Germany, India, Indonesia, Italy, the Philippines, Poland, South Africa, South Korea, Spain, the UK and the US.
Countries are placed in one of four groups depending on whether their deployment and enabler scores sit above or below the sample median.
The four electrification groups
Solid foundation: China, France and Spain. All three combine relatively strong deployment with strong enabling conditions. China has the highest deployment score at 68%, backed by coordinated grid investment, industrial policy and incentives. France and Spain benefit from strong grid performance and clean power shares of 95% and 75% respectively. In all three, electricity prices are more competitive against gas than in most other economies assessed.
Potential for take-off: Germany, India, Italy, Poland and the UK. Here, enabling conditions score better than deployment, with recent policy changes not yet fully reflected on the ground. Barriers include grid constraints, relatively high electricity costs and weak uptake in areas such as vans and trucks. The UK has the largest gap of any country, scoring 82% for enablers but just 38% for deployment. Electricity costs UK industry around five times as much as gas per unit of energy, while Germany faces a grid connection backlog of hundreds of gigawatts.
Risk of stalling: the US, Australia, Brazil, Ethiopia and South Korea. Deployment sits at or above the halfway mark, but enablers are below the median. In the US, federal policy reversals and grid bottlenecks risk slowing momentum. More than 2 TW of generation and storage is waiting in US interconnection queues, compared with roughly 1.3 TW of existing generating capacity. In Ethiopia, electric vehicles made up 60% of new passenger car purchases in 2024 after a ban on combustion-engine vehicle imports, yet only around 60% of the population has access to electricity. South Korea has the second-highest deployment score, at 60%.
Early-stage adoption: Indonesia, the Philippines and South Africa. All three sit below the halfway marks on both measures. Clean power accounts for 18% of generation in Indonesia and South Africa and 23% in the Philippines, while grid investment in all three is below 0.4% of GDP, against a 0.65% average across the sample.
A wide implementation gap
Across the 16 countries, the median enablers score is 67%, compared with 45% for deployment, and 14 of the 16 score higher on enablers than on deployment. The coalition links this gap to factors such as the recency of some policies, policy uncertainty, grid connection delays and incentives that are misaligned between fossil fuels and clean electricity.
The report also notes that electricity remains more expensive than natural gas, particularly in the UK and Poland, but that competitive prices alone are not enough. Grid, infrastructure and technology costs also shape the investment case.
“Electrification is becoming a test of economic competitiveness and energy security,” said María Mendiluce, CEO of the We Mean Business Coalition. “The competitive advantage now comes from turning policy into delivery.”
The suggested actions for governments include making electricity more affordable relative to fossil fuels, investing in modern grids, speeding up connections and permitting, reforming electricity markets, and offering clear policies and incentives. Electrification is expected to be a key focus at COP31.
From an Indian reader’s point of view, I find India’s placement the most interesting detail: the policy groundwork is rated ahead of what has been built so far, which puts the focus squarely on delivery.
FAQ
What is the Electrification Competitiveness Index?
It is an index developed by the We Mean Business Coalition with support from RMI that scores 16 countries on electrification deployment and on the enabling conditions for further progress, using 52 indicators.
Where does India rank in the electrification index?
India is in the “potential for take-off” group with Germany, Italy, Poland and the UK, meaning its enabling conditions score better than its current deployment.
Why is the US at risk of stalling?
According to the index, federal policy reversals and grid bottlenecks risk slowing US momentum. More than 2 TW of generation and storage is waiting in interconnection queues, against roughly 1.3 TW of existing capacity.