Energy Efficiency

Energy Efficiency

Saving energy, saving money

The 2012 Directive, as amended in 2018, sets rules and obligations for the EU’s 2020 and 2030 energy efficiency targets.

Making buildings more energy efficient is needed for the EU to achieve its energy and climate goals.

EU energy efficiency measures for products will save money and energy

The EU promotes cogeneration in order to improve energy efficiency in Europe.

Mobilising private financing for energy efficiency investments.

The EU has launched a heating and cooling strategy as a first step in tackling the large amount of energy used by the sector.

By using energy more efficiently, Europeans can lower their energy bills, reduce their reliance on external suppliers of oil and gas, and help protect the environment.

In order to achieve these benefits energy efficiency needs to be improved throughout the full energy chain, from production to final consumption. At the same time, the benefits of energy savings must outweigh the costs, for instance those that result from carrying out renovations. EU measures therefore focus on sectors where the potential for savings is greatest, such as buildings, or where coordinated approach is required.

Energy efficiency targets for 2020 and 2030

In 2012, under the Energy Efficiency Directive 2012/27/EU, the EU set a 20% energy savings target by 2020 (when compared to the projected use of energy in 2020) – this is roughly equivalent to turning off 400 power stations.

In December 2018, the revised Energy Efficiency Directive entered into force (amending Directive EU (2018/2002) updating some specific provisions and introducing some new elements. Above all, it establishes a headline EU energy efficiency target for 2030 of at least 32.5% (compared to projections) with a clause for a possible upwards revision by 2023.

Under the new Governance rules, Member States were required to draft by the end of 2018 their 10-year integrated National Energy & Climate Plans (NECPs) for 2021-2030, outlining how Member States will meet the 2030 targets for energy efficiency and for renewable energy. The Commission is currently assessing these draft plans and is mandated to come forward with recommendations (by the end of June 2019) if national contributions for energy efficiency are not sufficient to achieve the EU target for 2030. Member States must then finalise their NECPs by the end of 2019.   

Policies to improve energy efficiency

The EU has adopted a number of measures to improve energy efficiency in Europe. They include:

  • an annual reduction of 1.5% in national energy sales
  • EU countries making energy efficient renovations to at least 3% of buildings owned and occupied by central governments per year
  • mandatory energy efficiency certificates accompanying the sale and rental of buildings
  • minimum energy efficiency standards and labelling for a variety of products such as boilers, household appliances, lighting and televisions (ecodesign)
  • the preparation of National Energy Efficiency Action Plans every three years by EU countries
  • the planned rollout of close to 200 million smart meters for electricity and 45 million for gas by 2020
  • large companies conducting energy audits at least every four years
  • protecting the rights of consumers to receive easy and free access to data on real-time and historical energy consumption
  • the Commission has published guidelines on good practice in energy efficiency.

Energy efficiency progress

Following a gradual decrease between 2007 and 2014, energy consumption increased between 2014 and 2017. This increase could partly be attributed to good economic performance since 2014, low-oil prices and colder winters. The primary energy consumption in 2017 was 5.3 % above the 2020 targets, whereas the final energy consumption was 3.3% above those targets. If energy consumption continues to increase in the coming years, the EU will not reach its 2020 target for both primary and final energy consumption. There is therefore a need to further intesify efforts to deliver energy savings in the short term. 

EU countries have implemented energy efficiency measures in all sectors, and these have contributed considerably to a decrease in EU energy consumption. The EU's drive towards a more energy efficient future has also produced substantial benefits for Europeans. For instance:

  • New buildings consume half the energy they did in the 1980s
  • Energy intensity in EU industry decreased by 16% between 2005 and 2014
  • More efficient appliances are expected to save consumers €100 billion annually – about €465 per household – on their energy bills by 2020
  • EU countries have committed themselves to rolling out almost 200 million smart meters for electricity and 45 million for gas by 2020, leading to better information and savings for consumers
  • The share of refrigerators in the highest energy efficiency labelling classes (A and above) increased from less than 5% in 1995 to more than 90% in 2010.

With the implementation of energy efficiency legislation and ambitious energy efficiency programmes in Europe, further benefits are expected in the future. They include:

  • Lower demand for EU gas imports.
  • Lower energy costs for people who live and work in energy efficient buildings, as well as additional benefits such as improved air quality and protection from external noise provided by energy efficient windows
  • Targeted energy efficiency measures in buildings can help households with lower incomes to improve their living conditions
  • Lower energy costs for companies, in particular energy-intensive industries
  • Less need for additional generation and grid capacities with higher energy efficiency levels
  • Boosting domestic energy efficiency investments will bring new business opportunities for European companies such as construction firms and manufacturers of energy-using or transport equipment, which is likely to have a positive impact on economic growth in Europe
  • New jobs in construction, manufacturing, research, and other industries investing in energy efficiency.

Heating and cooling

Heating and cooling in our buildings and industry accounts for half of the EU's energy consumption. Moreover, 84% of heating and cooling is still generated from fossil fuels, while only 16% is generated from renewable energy. In order to fulfil the EU's climate and energy goals, the heating and cooling sector must sharply reduce its energy consumption and cut its use of fossil fuels.

In February 2016, the Commission proposed an EU heating and cooling strategy. This is a first step in exploring the issues and challenges in this sector, and solving them with EU energy policies.

Financing energy efficiency

The EU has support schemes and initiatives to accelerate energy efficiency investments.