Intensity of final energy consumption

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 sectors are disaggregated to cover the industry, transport, households, services and agriculture sectors.

Total final energy intensity is defined as total final energy consumption (consumption of transformed energy, i.e. 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 GDP at 2010 prices. For a comparison of GDP and final energy intensity in a year between countries, the GDP figures can be taken at purchasing power parity (PPP) to eliminate the differences in price levels, allowing meaningful volume comparisons of GDP figures between countries.

• Households energy intensity is defined as final households energy consumption divided by population.
• Transport energy intensity is defined as final transport energy consumption divided by GDP at 2010 prices in billions of euros.
• Industry energy intensity is defined as final industry energy consumption divided by industry gross value added (GVA) at constant 2005 prices. This excludes final energy consumption and GVA from construction.
• Services energy intensity is defined as final services energy consumption divided by services GVA at constant 2005 prices. The value added of services is the sum of the following seven values added:
  • wholesale and retail trade, transport, accommodation and food service activities;
  • information and communication activities;
  • financial and insurance activities;
  • real estate activities;
  • professional, scientific and technical activities; administrative and support service activities;
  • public administration, defence, education, human health and social work activities;
  • arts, entertainment and recreation; other service activities; activities of household and extra-territorial organisations and bodies.
• Agriculture and fisheries energy intensity is defined as final agriculture and fisheries energy consumption divided by agriculture, forestry and fishing GVA at constant 2005 prices.

Units

Final energy consumption is measured in 1 000 tonnes of oil equivalent (ktoe) and GDP is measured in millions of euros. Energy intensity is measured in tonnes of oil equivalent per million euros (GDP or GVA), except in the case of households energy intensity, which is measured in tonnes of oil equivalent per 1 000 of 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 to the EU:

• 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 various sectors (households, services, agriculture, industry and transport) is being decoupled from economic growth, thus underpinning (but not exhaustively addressing) assessments of 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 and on 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 30 November 2016, the European Commission presented a new package of measures with the goal of providing the stable legislative framework needed to facilitate the clean energy transition — and thereby taking a significant step towards the creation of the Energy Union. Aimed at enabling the EU to deliver on its Paris Agreement commitments, the 'Clean Energy for All Europeans' proposals are intended to help the EU energy sector become more stable, more competitive and more sustainable, and fit for the 21st century. More information can be found online:
  https://ec.europa.eu/energy/en/news/commission-proposes-new-rules-consumer-centred-clean-energy-transition
• 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 November 2017, the Commission published the 'Third Report on the State of the Energy Union':
  https://ec.europa.eu/commission/priorities/energy-union-and-climate_en
• On 24 October 2014, the European Council endorsed a binding EU target of a minimum 40 % reduction in domestic greenhouse gas emissions by 2030 compared with 1990 (SN 79/14). This involves, among other things, an indicative EU level target of at least a 27 % improvement in energy efficiency by 2030 compared with 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 Member States focusing their regulatory and financial efforts on these sectors. More information can be found online:
  http://www.consilium.europa.eu/en/policies/climate-change/2030-climate-and-energy-framework/#
  https://ec.europa.eu/clima/policies/strategies/2030_en
• Communication from the Commission to the European Parliament and the Council 'Energy efficiency and its contribution to energy security and the 2030 framework for climate and energy policy' (COM(2014) 520 final).
• The current EU energy efficiency framework applies 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; 
  • 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;
  • Communication from the Commission to the European Parliament and the Council 'Implementing the Energy Efficiency Directive — Commission Guidance' (COM(2013) 762);
  • Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings;
  • 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 on the consumption of energy and other resources by energy-related products;
  • Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (and its implementing measures);
  • Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 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 of 23 April 2009 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 of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emissions allowance trading scheme of the Community;
  • Decision No 1359/2013/EU of the European Parliament and of the Council of 17 December 2013 amending Directive 2003/87/EC clarifying provisions on the timing of auctions of greenhouse gas allowances.
  References
  • EEA, 'Air pollutant emissions data viewer (LRTAP Convention)' (http://www.eea.europa.eu/data-and-maps/data/data-viewers/air-emissions-viewer-lrtap).
  • EEA, 'Greenhouse gas — data viewer' (http://www.eea.europa.eu/data-and-maps/data/data-viewers/greenhouse-gases-viewer).
  • EEA, 'EU Emissions Trading System (ETS) data viewer' (http://www.eea.europa.eu/data-and-maps/data/data-viewers/emissions-trading-viewer).
  • EEA, 2016, Transition towards a more sustainable mobility system — TERM 2016: Transport indicators tracking progress towards environmental targets in Europe (http://www.eea.europa.eu/publications/term-report-2016).
  • EIA, 'ELENA — supporting investments in energy efficiency and sustainable transport', European Investment Bank (http://www.eib.org/products/elena/index).
  • NEA, 2014, Energy Statistics in Iceland 2014, National Energy Authority (http://os.is/gogn/os-onnur-rit/orkutolur_2014-enska.pdf).

Targets

Directive 2012/27/EU on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the EU in order to achieve the headline target of a 20 % reduction in gross inland energy consumption by 2020. Member States are requested to set indicative targets. It is up to the individual Member States to decide 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 Communication on energy efficiency of 23 July 2014.

Related policy documents

• 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) 109 final: Energy Efficiency Plan 2011
  Energy Efficiency Plan 2011
• 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(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 2009/29/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.
• 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 2010/31/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.
• Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017 setting a framework for energy labelling and repealing Directive 2010/30/EU
  Energy labeling directive

Methodology

Methodology for indicator calculation

Technical information

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.

Uncertainties

Methodology uncertainty

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

Indicator uncertainty (historic data).

The sectoral breakdown of final energy consumption includes the industry, transport, households, and 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 of energy intensity within each sector. 

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

Data sets uncertainty

Methodology uncertainty: reliability, accuracy, robustness and uncertainty (at data level)

The share of energy consumption for a particular fuel could decrease even if the actual amount of energy used from that fuel increased, as the development of the share for a particular fuel depends on the change in its consumption relative to the total consumption of energy.

From an environmental point of view, however, the relative contribution of each fuel has to be considered in the wider context. Absolute (as opposed to relative) volumes of energy consumption for each fuel are the key to understanding the environmental pressures. These depend on the total amount of energy consumption as well as on the fuel mix used and the extent to which pollution abatement technologies are used.

Gross inland energy consumption may not accurately represent the energy needs of a country in terms of final energy demand. Fuel switching may, in some cases, have a significant effect on changing gross inland energy consumption even though there is no change in final energy demand. 

Data set uncertainty

Strength and weaknesses (at data level)

Data have traditionally been compiled by Eurostat through the annual joint questionnaires of Eurostat and the International Energy Agency, following a well-established and harmonised methodology. Methodological information on the annual joint questionnaires and data compilation can be found on 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