The 2019-2024 European climate and energy package sets a roadmap for various sectors to achieve decarbonization and meet climate goals. To ensure its success, it must be implemented effectively. Dan Jørgensen, the new European Commissioner for Housing and Energy, highlights that housing and energy are interlinked themes that must be addressed together. The recipe for a successful European climate and energy transition requires affordable, growth-orientated, and secured energy sources as main ingredients.

As Europe moves towards a highly electrified and renewable energy system, the role of buildings in managing energy demand is more critical than ever. Buildings are responsible for 40% of the EU’s energy consumption and 36% of greenhouse gas emissions. Buildings hold the key to mitigating peak energy demand—the periods of highest consumption. Europe must strategically address these forthcoming peaks to avoid high energy prices, grid congestion, and keeping us locked in a fossil fuel world.

Renovating buildings by implementing energy efficiency measures is a solution to address these risks. Through widespread (i.e., >2% renovation rate) energy efficiency renovations and flexibility improvements in buildings, the European Union can reduce peak demand by 49%, saving €312 billion annually across the energy system. This has the power to lower the investment needed for grid expansion by up to €44.2 billion annually, optimizing Europe’s distribution grids.

Moreover, energy-efficient renovation of the European Union building stock increases the equality in electricity prices between countries, promoting a more balanced energy market across regions, and across Europe for all citizens. Lower energy costs directly benefit end users, resulting in significant reductions in electricity bills for European households and enabling European industries to decarbonize their production processes at more competitive energy costs.

Energy-efficient buildings are therefore central to implementing a system efficiency approach. Breaking down silos and fostering collaborations across the energy sector are crucial to success. By placing energy efficiency at the heart of the energy system and focusing on improving the efficiency of buildings, Europe can achieve multiple objectives: lowering energy costs, stabilizing the grid, and enhancing the affordability and competitiveness of its energy system. By making all technologies work hand in hand, we can make the best of the available resources to ensure that tomorrow has a home for all of us.

Quentin Galland-Jarrett
Group Public & Regulatory Affairs Director 
Knauf Insulation