Energy Efficiency: Enabling, accelerating and lowering the costs of the EU electrification – June 2026 Update

To improve its energy security, reduce energy costs and achieve climate neutrality, the EU energy system must be progressively electrified. While it is widely accepted that electrification increases energy efficiency, the role of energy efficiency in accelerating and lowering the costs of electrification is often overlooked. As recognised by the International Energy Agency, electrification is a primary driver for improving energy efficiency, especially in advanced economies, enabling a shift away from fossil fuel dependency. However, importantly, by actively reducing avoidable energy demand, lowering peaks and easing pressure on infrastructure, energy efficiency also supports a more affordable and manageable electrification process, which helps to control energy costs. Strengthening energy efficiency measures is thus essential for achieving an energy transition that enhances the quality of life for citizens, especially for the most vulnerable, bolsters the competitiveness of EU businesses and makes the EU energy system more independent and resilient to geopolitical shocks.

Energy efficiency and electrification are mutually reinforcing. Ahead of the European Commission’s upcoming Electrification Action Plan, this briefing provides some reflections and supportive data on the contribution of demand side measures to decarbonise and electrify the EU energy system and to achieve a more resilient and energy independent EU.