Final energy consumption intensity

Indicator Specification
Indicator codes: ENER 021
Created 02 Sep 2015 Published 20 Oct 2015 Last modified 30 May 2016, 10:06 AM
Topics: ,
This indicator measures final energy consumption, which covers energy supplied to the final consumer for all energy uses. It is calculated as the sum of the final energy consumption of all end-use sectors. These are disaggregated to cover industry, transport, households and services, and agriculture. Total final energy intensity is defined as total final energy consumption (consumption of transformed energy such as electricity, publicly supplied heat, refined oil products, coke, etc. and the direct use of primary fuels such as gas or renewables, e.g. solar heat or biomass) divided by gross domestic product (GDP) at constant 2005 prices. The GDP figures are taken at constant prices to avoid the impact of inflation, with a base year of 2005. Household energy intensity is defined as household final energy consumption divided by population. Transport energy intensity is defined as transport final energy consumption divided by GDP at constant 2005 prices. Industry energy intensity is defined as industry final energy consumption divided by industry Gross Value Added (GVA) at constant 2005 prices. This excludes final energy consumption and gross value added from construction.  Services energy intensity is defined as services final energy consumption divided by services GVA at constant 2005 prices. The value added of services is the sum of the following three values added: Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; hotels and restaurants; transport, storage and communication; Financial intermediation; real estate, renting and business activities; and Public administration and defence, compulsory social security; education; health and social work; other community, social and personal service activities; private households with employed persons.

Assessment versions

Published (reviewed and quality assured)

Rationale

Justification for indicator selection

Historically, economic growth influenced final energy consumption in the end-use sectors, particularly transport, industry and services. Final energy consumption of households is driven by disposable income (a function of economic growth), population, the number of households and the size of dwellings. This indicator measures to what extent there is decoupling between final energy consumption in various sectors and its drivers. A decoupling of final energy consumption from economic growth indicates a reduction in environmental pressures from energy production and consumption due to the avoided supply of energy.

Scientific references

  • No rationale references available

Indicator definition

This indicator measures final energy consumption, which covers energy supplied to the final consumer for all energy uses. It is calculated as the sum of the final energy consumption of all end-use sectors. These are disaggregated to cover industry, transport, households and services, and agriculture.

Total final energy intensity is defined as total final energy consumption (consumption of transformed energy such as electricity, publicly supplied heat, refined oil products, coke, etc. and the direct use of primary fuels such as gas or renewables, e.g. solar heat or biomass) divided by gross domestic product (GDP) at constant 2005 prices. The GDP figures are taken at constant prices to avoid the impact of inflation, with a base year of 2005.

    • Household energy intensity is defined as household final energy consumption divided by population.
    • Transport energy intensity is defined as transport final energy consumption divided by GDP at constant 2005 prices.
    • Industry energy intensity is defined as industry final energy consumption divided by industry Gross Value Added (GVA) at constant 2005 prices. This excludes final energy consumption and gross value added from construction. 
    • Services energy intensity is defined as services final energy consumption divided by services GVA at constant 2005 prices. The value added of services is the sum of the following three values added:
      • Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods; hotels and restaurants; transport, storage and communication;
      • Financial intermediation; real estate, renting and business activities; and
      • Public administration and defence, compulsory social security; education; health and social work; other community, social and personal service activities; private households with employed persons.

    Units

    Final energy consumption is measured in 1000 tonnes of oil equivalent (ktoe) and GDP is measured in millions of Euro at 2005 market prices. Energy intensity is measured in tonnes of oil equivalent per million Euro (GDP or GVA), except in the case of household energy intensity, which is measured in tonnes of oil equivalent per 1000 population. 

    Policy context and targets

    Context description

      Environmental context

      On 25 February 2015, the Communication on the Energy Union strategy was adopted.The Energy Union strategy has five mutually-reinforcing and closely interrelated dimensions designed to bring greater energy security, sustainability and competitiveness:

      - Energy security, solidarity and trust;

      - A fully integrated European energy market;

      - Energy efficiency contributing to moderation of demand;

      - Decarbonising the economy, and

      - Research, Innovation and Competitiveness

      This indicator shows the extent to which energy consumption in different sectors (households, services and agriculture, industry and transport) is being decoupled from economic growth thus underpinning (but not exhaustively providing the answer for) assessments on progress towards energy efficiency. Relative decoupling occurs when energy consumption grows, but more slowly than the underlying driver. Absolute decoupling occurs when energy consumption is stable or falls while the driver grows.

      A shift towards absolute decoupling would indicate that pressures on the environment from energy production and consumption are decreasing (because of avoided energy supply) but the magnitude of the impact depends both on the total amount of avoided energy consumption, as well as the implications for the energy mix (in other words, which fuels have been used less because of the reduction in final energy consumption).

      Policy context

      • On 25 February 2015, the European Commission adopted a Communication on "A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy". 
      • On 24 October 2014, the European Council endorsed a binding EU target of a minimum 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990 (SN 79/14). This involves, among other things, an indicative EU level target of at least a 27% improvement in energy efficiency in 2030 compared to projections of future energy consumption based on current criteria. This will be reviewed by 2020, bearing in mind an EU level of 30%. The Commission will propose priority sectors in which significant energy-efficiency gains can be reaped, and ways to address them at EU level, with the EU and the Member States focusing their regulatory and financial efforts on these sectors. 
      • Conclusions on 2030 Climate and Energy Policy Framework (SN 79/14) European Council (23 and 24 October 2014). 
      • Communication from the Commission to the European Parliament and Council COM(2014) 520 final. Energy Efficiency and its contribution to energy security and the 2030 Framework for climate and energy policy.
      • The current EU energy efficiency framework aims until 2020. An indicative target of 20% energy savings by 2020 has been established as the headline target for energy efficiency. EU Member States have set non-binding national energy efficiency targets. These targets are supported by:
        • The Energy Efficiency Directive (EED);
        • The Energy Performance of Buildings Directive (EPBD);
        • Product regulations laying down minimum energy performance standards and putting energy performance information on labels; 
        • CO2 performance standards for cars and vans;
        • Increased financing through EU Structural and Investment (ESI) Funds, Horizon 2020, and dedicated facilities such as ELENA9 and the European Energy Efficiency Fund;
        • The roll-out of smart meters following the Internal Electricity Market Directive;
        • The EU Emissions Trading System (ETS)
      • Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC Text with EEA relevance. 
      • Council Directive 2013/12/EU of 13 May 2013 adapting Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency, by reason of the accession of the Republic of Croatia. 
      • Commission Implementing Decision of 22 May 2013 (notified under document C(2013) 2882; 2013/242/EU), establishing a template for National Energy Efficiency Action Plans under Directive 2012/27/EU of the European Parliament and of the Council. 
      • Commission Guidance COM(2013) 762, Communication from the Commission to the European Parliament and Council, Implementing the Energy Efficiency Directive. 
      • Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on Energy Performance of Buildings. 
      • Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on Energy Labelling and its implementing measures. 
      • Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 on Ecodesign and its implementing measures, establishing a framework for the setting of ecodesign requirements for energy-related products. 
      • Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC. 
      • Regulation (EC) no 443/2009 of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the community’s integrated approach to reducing CO2 emissions from light-duty vehicles. 
      • Directive 2009/29/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emissions allowance trading scheme of the community and Decision No. 1359/2013/EU.
         

      References

      Targets

      The Directive 2012/27/EU on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of a 20% reduction in gross inland energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on gross inland consumption, final energy consumption, primary or final energy savings or energy intensity.

      At an EU summit in October 2014, EU countries agreed on a new energy efficiency target of 27% or greater by 2030. The European Commission had proposed 30% in its Energy Efficiency Communication from 23 July 2014.

      Related policy documents

      • 2009/29/ec
        Directive 2009/29/ec of the European parliament and of the Council amending directive 2003/87/ec so as to improve and extend the greenhouse gas emission allowance trading scheme of the community.
      • 2009/125/EC - Ecodesign Directive
        The Ecodesign Directive is a framework Directive: it does not set binding requirements on products by itself, but through  implementing measures  adopted on a case by case basis for each product group. All guiding principles for developing implementing measures are set in the  framework Directive 2009/125/EC . The list of product groups to be addressed through implementing measures is established in the periodic  Working Plan .  Standardisation  supports the implementation of the Ecodesign Directive (notably through harmonised standards giving presumption of conformity with all or some Ecodesign legal requirements).
      • COM (2011) 112 - A Roadmap for moving to a competitive low carbon economy in 2050
        With its "Roadmap for moving to a competitive low-carbon economy in 2050" the European Commission is looking beyond these 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80 to 95% by mid-century as agreed by European Heads of State and governments. It shows how the sectors responsible for Europe's emissions - power generation, industry, transport, buildings and construction, as well as agriculture - can make the transition to a low-carbon economy over the coming decades.
      • COM(2011) 109 final: Energy Efficiency Plan 2011
        Energy Efficiency Plan 2011
      • COM(2013) 762 final; COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
        Implementing the Energy Efficiency Directive – Commission Guidance {SWD(2013) 445 final} {SWD(2013) 446 final} {SWD(2013) 447 final} {SWD(2013) 448 final} {SWD(2013) 449 final} {SWD(2013) 450 final} {SWD(2013) 451 final}
      • Commission Implementing Decision of 22 May 2013 establishing a template for National Energy Efficiency Action Plans under Directive 2012/27/EU
        Commission Implementing Decision of 22 May 2013 (notified under document C(2013) 2882; 2013/242/EU), establishing a template for National Energy Efficiency Action Plans under Directive 2012/27/EU of the European Parliament and of the Council. Text with EEA relevance (2013/242/EU)
      • COUNCIL DIRECTIVE 2013/12/EU
        COUNCIL DIRECTIVE 2013/12/EU of 13 May 2013 adapting Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency,  by reason of the accession of the Republic of Croatia
      • DIRECTIVE 2009/72/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
        DIRECTIVE 2009/72/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of13 July 2009concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (Text with EEA relevance)
      • Directive 2010/30/EU
        Energy labelling directive Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products
      • DIRECTIVE 2010/31/EU - Energy performance of buildings directive
        DIRECTIVE 2010/31/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 May 2010 on the energy performance of buildings(recast)
      • Directive 2012/27/eu
        DIRECTIVE 2012/27/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC
      • REGULATION (EC) No 443/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 443/2009
        Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community's integrated approach to reduce CO2 emissions from light-duty vehicles.

      Key policy question

      Has there been a decoupling between economic growth and final energy consumption in Europe?

      Methodology

      Methodology for indicator calculation

      Technical information

      1. Data source:
        Total final energy consumption and final energy consumption by sector, gross domestic product (GDP), gross value added (GVA): Eurostat (historical data) http://ec.europa.eu/eurostat/.
        GDP growth rate: World Bank (World Development Indicators 2012) http://data.worldbank.org/data-catalog/world-development-indicators
      2. Geographical coverage: The EEA had 33 member countries at the time of writing. These are the 28 European Union Member States and Turkey, plus Iceland, Liechtenstein, Switzerland and Norway. Liechtenstein is not covered in this factsheet due to lack of data for recent years.
      3. Methodology and frequency of data collection: 
        Data is collected annually. 
        Eurostat definitions and concepts for energy statistics http://ec.europa.eu/eurostat/web/energy/methodology/annual

        Methodology of data manipulation: 
        The coding (used in the Eurostat New Cronos database) and specific components of the indicators are:
      • Total final energy intensity: final energy consumption 101700 divided by (GDP), conducted from the Eurostat datasheets (b1gm Gross domestic product at 2005 market prices mio_eur_clv2005)      
      • Household energy intensity: Final energy consumption households 102010 divided by PJAN Population by sex and age on 1 January of each year.
      • Transport energy intensity: Final energy consumption transport 101900 divided by B1GM GDP and main components - Constant 2005 prices.
      • Industry energy intensity: Final energy consumption industry 101800 divided by the gross value added for industry conducted from the Eurostat datasheets (NACE C_D_E Total industry GVA)
      • Services energy intensity: Final energy consumption Services and Others 102035, 102040 divided by the gross value added of services (Wholesale and retail trade, Financial intermediation; Public administration and defence: NACE G to P)
      • Agriculture energy intensity: Final energy consumption Agriculture, fisheries 102030, 102020 divided by the gross value added of agriculture, hunting, forestry and fishing – NACE A_B.

      The gross value added (GVA) for Industry, Agriculture and Tertiary and GDP are not available in Eurostat for all the countries before 1995. GDP before 1995 was calculated with the GDP growth rate published by country by the World Bank (Reference World Development Indicators 2013). GDP for the EU28 is the sum of the countries. The countries for which this gap-filling method has been used are: Bulgaria, Cyprus, Czech Republic, Germany, Estonia, Croatia, Hungary, Ireland, Lithuania, Luxembourg, Malta, Poland, Portugal and Slovakia.

      Average annual rate of growth calculated using: [(last year / base year) ^ (1 / number of years) –1]*100. 

        Methodology for gap filling

        No methodology for gap filling has been specified. Probably this info has been added together with indicator calculation.

        Methodology references

        No methodology references available.

        Data specifications

        EEA data references

        • No datasets have been specified here.

        Data sources in latest figures

        Uncertainties

        Methodology uncertainty

        Reliability, accuracy, robustness, uncertainty (at data level)

        Indicator uncertainty (historic data)

        The sectoral breakdown of final energy consumption includes industry, transport, households, services, agriculture, fisheries and other sectors. To be consistent with projected data, the indicator aggregates agriculture, fisheries and other sectors together with the services sector. The inclusion of agriculture and fisheries together with the services sector is, however, questionable given their divergent trends.

        Because the main focus of the indicator is on trends, energy intensity is presented as an index. It should be noted that the final energy intensities between sectors, and also the total final energy intensity, are not directly comparable, because as described above, the definitions of energy intensity within each sector are not identical. The indicator serves to highlight the evolution in energy intensity within each sector. 

        Overall scoring – historic data (1 = no major problems, 3 = major reservations):

        • Relevance: 1
        • Accuracy: 2
        • Comparability over time: 2
        • Comparability over space: 2

        Data sets uncertainty

        Strength and weaknesses (at data level)

        Data has been traditionally compiled by Eurostat through the annual Joint Questionnaires shared by Eurostat and the International Energy Agency and following a well-established and harmonised methodology. Methodological information on the annual Joint Questionnaires and data compilation can be found in Eurostat's web page for metadata on energy statistics. http://ec.europa.eu/eurostat/web/energy/methodology/annual.

        Rationale uncertainty

        No uncertainty has been specified

        Further work

        Short term work

        Work specified here requires to be completed within 1 year from now.

        Long term work

        Work specified here will require more than 1 year (from now) to be completed.

        General metadata

        Responsibility and ownership

        EEA Contact Info

        Anca-Diana Barbu

        Ownership

        European Environment Agency (EEA)

        Identification

        Indicator code
        ENER 021
        Specification
        Version id: 4
        Primary theme: Energy Energy

        Permalinks

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        Frequency of updates

        Updates are scheduled once per year

        Classification

        DPSIR: Driving force
        Typology: Descriptive indicator (Type A - What is happening to the environment and to humans?)

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        Data references used

        Latest figures and vizualizations

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