Energy Efficiency: Enabling, accelerating and lowering the costs of the EU electrification

To 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 recognized 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 overall energy demand, energy efficiency also supports a more affordable and manageable electrification process which helps to control energy prices. 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 – and bolsters the competitiveness of EU businesses.