Arianna Vitali, executive director of the Energy Savings Union, Eusew’s partner organization, highlights the importance of energy efficiency in EU electrification, including savings, increasing grid flexibility and protecting consumers.
It is no secret that the EU’s reaching climate neutrality is essential to advance electrification of energy systems. Along with that, it is a healthy strategy to achieve it in a cost-effective way.
It is important that the new European Commission’s Electrification Measures Plan on Books ensure that the energy efficiency potential of enabling, accelerating and reducing the costs of EU electrification is not overlooked, but rather fully utilized.
Energy Efficiency and Electrification: A match made in heaven
Moving from fossil fuels towards renewable energy sources requires accelerated electrification of both energy production and end USE.
We all agree that electrification is more energy efficient, but it is important to remember that this relationship is a two-way street that energy efficiency also offers to the EU electrification process.
In fact, by reducing the overall energy demand, energy efficiency can reduce grid congestion, reduce the cost of electrifying EU energy systems, and stabilize the prices consumers pay.
In that attitude, the European Commission recently emphasized that by 2030, it combines electrification and energy efficiency measures, it could reduce the EU’s fossil fuel import bill by 32.5 billion euros per year (representing 25% of the total savings arising from implementing the plan of action).
With the mission’s top priorities focused on improving competitiveness and affordability, harnessing the joint possibilities of energy efficiency and electrification is more relevant than ever.
Flexibility is important
A resilient energy system starts with a flexible energy system. Not only does it support the EU climate neutrality target, but it also reduces demand for demand, reducing the stress on the grid, allowing for more flexible consumption patterns, and ultimately guarantees a more adaptive and resilient energy system.
There is evidence. By adopting ambitious demand-side measures (both efficiency and flexibility), peak demand can be reduced by up to 39% in 2030 compared to such a non-improvement scenario.
This reduces the need for additional infrastructure and makes the overall electrification process faster and easier to manage.
Reduce costs, increase affordability, and protect citizens
The potential to reduce energy-efficient infrastructure costs, and therefore the overall system cost, is important.
For example, each ambitious demand side measure reduces total energy system costs and reduces annual investment in the distribution grid by around 400 billion euros.
These costs are ultimately not paid by businesses or citizens, contributing to affordable energy prices by keeping electricity prices down and helping European industries decarbonize while enhancing competitiveness.
Finally, energy efficiency measures also help reduce household energy costs and protect the most vulnerable people. Ambitious demand-side measures will save households a significant amount of annual energy bills.
The average annual household energy spending could fall to 900 euros by 2030, a significant decrease from today’s average of 1,190 euros. This has proven to be particularly useful for heating and road transport, which is expected to raise fossil fuel prices.
Time to put energy efficiency first
The EU’s transition to decarbonisation and electrification of energy systems requires careful planning and substantial investment.
Luckily, the EU has a jack of all trades. With a wide range of benefits, including reducing infrastructure needs and costs, increasing energy security, reducing energy bills, supporting both businesses and vulnerable citizens, energy efficiency must provide and prioritize solutions that are readily available to many of the challenges ahead.
As highlighted in the Action Plan for Affordable Energy, the EU needs a “decarbonized energy system” driven by a substantial scale-up of clean energy and electrification, with energy efficiency at the center.
Prioritizing the implementation of energy efficiency solutions on the ground is key to building affordable, safe and competitive energy systems for the future.
This commentary was compiled in collaboration with European Sustainable Energy in 2025. For more information, see ec.europa.eu/eusew.
Recommended links
Alliance for Energy Saving – Energy Efficiency: Enabling, Accelerating and Reducing Costs for EU Electrification Regulation Support Projects – Here! Now! New Role for Energy Efficiency in Electrified Energy Systems – Multiple Benefits of Energy Efficiency: Energy Price IEA – Energy Efficiency 2024
About the author
Arianna Vitali is the executive director of the Energy Savings Union since 2021. The Union strives to make energy efficiency and energy saving the first considerations in energy policy. We unite businesses, local governments, energy institutions, energy communities and civil society organisations to pursue this goal.
Before joining the Union, Ariana was a senior policy advisor at BPIE, where she managed research projects and piloted BPIE jobs related to the wave of renovations. Previously, she was part of the Climate and Energy Team at WWF’s European Policy Office, coordinating WWF’s advocacy for energy savings in Europe.
Disclaimer: This article is a contribution from a partner. Unauthorized reproduction is prohibited.
Neither the European Commission nor is it liable for any use that may be made from the information in the article by anyone acting on the Commission. The only opinion expressed is the author and should not be considered representative of the official position of the European Commission.
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