The EU’s push towards climate neutrality is inextricably linked to the electrification of its energy system. As the new European Commission rolls out its Electrification Action Plan, it’s high time to shine a spotlight on the unsung hero of this transition: energy efficiency. Arianna Vitali, Secretary General at the Coalition for Energy Savings, argues that energy efficiency is not just a sidekick but a powerhouse that can enable, accelerate, and lower the costs of EU electrification.
Electrification, the shift from fossil fuels to renewable energy sources, is a critical step in the EU’s climate strategy. However, it’s a two-way street. While electrification boosts energy efficiency, energy efficiency can also supercharge the EU’s electrification process. By reducing overall energy demand, energy efficiency can ease grid congestion, cut costs, and stabilise consumer prices. The European Commission has already highlighted that combining electrification and energy efficiency could slash the EU’s fossil fuel import bill by €32.5bn annually by 2030. That’s a quarter of the total savings expected from the Action Plan.
Flexibility is the name of the game in a resilient energy system. Energy efficiency, through demand-side measures, can reduce peak demand by up to 39% by 2030. This means less strain on the grid, more adaptable consumption patterns, and a faster, more manageable electrification process. It’s a win-win situation that aligns perfectly with the EU’s priorities of improving competitiveness and affordability.
But the benefits don’t stop at flexibility. Energy efficiency can significantly lower infrastructure costs, reducing total energy system costs and annual investments in distribution grids by around €40bn. These savings trickle down to businesses and citizens, keeping electricity prices in check and supporting decarbonisation efforts. For households, ambitious demand-side measures could drop annual energy spending to €900 by 2030, down from the current €1,190. This is a lifeline for vulnerable citizens, especially as fossil fuel prices for heating and road transport are set to rise.
The EU’s transition to a decarbonised and electrified energy system is a monumental task, but energy efficiency is a ready-made solution. It reduces infrastructure needs, cuts costs, boosts energy security, and supports both businesses and vulnerable citizens. As the Action Plan for Affordable Energy stresses, energy efficiency must be at the heart of this transition. It’s time to prioritise energy efficiency solutions on the ground, building an affordable, secure, and competitive energy system for the future.
The EU’s electrification journey is not just about swapping out old technologies for new. It’s about creating a smarter, more efficient energy system. Energy efficiency is the key to unlocking this potential. It’s time to put energy efficiency first, to challenge the status quo, and to spark a debate about how we can make this transition as cost-effective and beneficial as possible. The future of the EU’s energy system depends on it.
