The EU has experienced significant shifts in energy consumption and efficiency in recent years. Since 2021, a notable decrease in final energy consumption has been observed, with reductions across industry (-6%/year), households (-4.9%/year), and services (-3.7%/year).
Figure 1: Final energy consumption by sector
Source: Odyssee, data at normal climate
This downturn can be attributed to a combination of factors, most notably the sharp increase in energy prices. Industries faced substantial price hikes (more than 50% in 2022, after a 16% rise in 2021), and households also experienced significant increases in their energy costs (+24%).
Figure 2: Energy prices variation (2021-2022) by sector
Source: Odyssee
However, the energy story is not solely about reduced consumption due to price pressures. There is a parallel narrative of energy efficiency gains. In fact, the rate of energy efficiency improvement has accelerated, particularly in households and industry. Households have shown strong progress (31%, 1.6%/year on average), driven by regulations and improvements in heating efficiency. Industry has also demonstrated significant efficiency gains, especially since 2019 (1.8%/year).
The transport sector presents a more complex picture. While new cars are becoming more fuel-efficient, overall transport efficiency has lagged, partly due to factors like decreased vehicle occupancy (-8% in 2020, with only a slight rebound since then).
Figure 3 : Energy efficiency trends for final consumers (EU)
Source: Odyssee
These efficiency improvements have translated into substantial energy savings, offsetting some of the upward pressure on consumption caused by economic activity and population growth. In other words, without these efficiency gains, energy consumption would have been considerably higher (29% higher in 2023).
Figure 4 : Energy savings and final consumption (EU)
Source: Odyssee, Energy saving tool1; data at normal climate.
Looking at the bigger picture, total energy supply has decreased even more significantly than final consumption. This is largely due to the changing energy mix, with a greater emphasis on renewable energy sources like wind and solar.
In conclusion, the EU's energy landscape is shaped by a combination of factors: price fluctuations, efficiency improvements, and a transition in energy sources. While rising prices have contributed to reduced consumption, underlying efficiency gains are also playing a crucial role in shaping overall energy trends.
Notes
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For more information, see: https://www.indicators.odyssee-mure.eu/energy-saving.html
The ODYSSEE-MURE project is co-funded by the European Union.
Views and opinions expressed are those of the authors only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor the granting authority can be held responsible for the information contained therein or for any use that may be made thereof.
Lead authors: Bruno Lapillonne, Zineb Raji (Enerdata)
Legal Notice: Responsibility for the information and views set out in this paper lies entirely with the authors.