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Indicator Assessment

Final energy consumption by sector and fuel in Europe

Indicator Assessment
Prod-ID: IND-16-en
  Also known as: ENER 016
Published 31 Jan 2020 Last modified 11 May 2021
16 min read
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  • Final energy consumption in the 28 EU Member States was 5.7 % lower in 2017 than in 2005, mainly due to reductions in the industry sector. Preliminary data suggests that this trend continues in 2018.
  • Still, final energy consumption increased for all fuel types in the EU between 2016 and 2017.
  • In 2017, the EU's final energy consumption rose for the first time in 7 years above the indicative trajectory set by the EEA to monitor progress towards the 2020 energy efficiency targets. A trend which is expected to continue also in 2018. Therefore, achieving the 2020 targets is increasingly uncertain.

Final energy consumption by fuel type and sector

Chart
Data sources:
Million tonnes of oil equivalent
Data sources:
Table
Data sources:

Final energy consumption and linear trajectory level to reach 2020 target

Chart
Table

Final energy consumption in the 28 EU Member States (EU-28) was 5.7 % lower in 2017 than in 2005, mainly due to reductions in the industry sector. Preliminary data suggests that this trend continues in 2018, albeit an increase of 0.1 % in final energy consumption between 2017 and 2018 can be observed.

 

Assessment by sectors

In 2017, the transport sector accounted for 31 % of total final energy consumption in the EU Member States, followed by the households (27 %), industry (25 %) and services (15 %) sectors.

In the transport sector, final energy consumption was 0.5 % higher in 2017 than in 2005. Final energy consumption in the transport sector exceeded the 2005 level for the first time since 2008 in 2017, a trend which will continue in 2018 according to EEA preliminary data, reflecting inter alia the recovery from the impact of the economic recession and the growth in road and air passenger transport.

Energy consumption by households decreased by 0.6 % per year in the period 2005-2017. This decrease was mainly caused by improvements in the energy efficiency of households, which outweighed the increasing number of appliances in and the increasing floor area of dwellings (EEA, 2019).

Energy consumption in the industry sector fell at an annual average rate of 1.3 % between 2005 and 2017. This was largely the result of a shift towards less-energy-intensive manufacturing industries and the continuing transition to a more service-oriented European economy, combined with the effects of the economic recession in recent years. However, final energy use increased again between 2016 and 2018 (preliminary data) due to the continuous growth of the EU economy, which offset the energy savings in the industry sector.

Energy consumption in the services sector increased annually by 0.6 % on average in the period 2005-2017. The sector is growing in Europe and the energy demand of electrical appliances, in particular information and communications technology appliances such as computers, and also of other energy-intensive technologies such as heating and air conditioning technologies, is increasing.

 

 Assessment by fuel types

Between 2016 and 2017, energy consumption increased for all fuel types in the EU. Oil accounted for the largest share of total final energy consumption in the EU, with 37.2 %, followed by electricity (22.7 %), natural gas (22.6 %), other fuels (15.1 %) and solid fuels (2.5 %).

The consumption of oil in EU Member States decreased by 13.2 % in the period 2005-2017 (1.3 % annually), although there was an increasing trend from 2014 onwards. The largest decrease, of 42.1 %, took place in the industry sector. The smallest decrease, of 3 %, occurred in the transport sector.

For electricity, final energy consumption in the EU Member States was very stable between 2005 and 2017. From 2005, electricity consumption in the services sector increased by 14.5 % (1.0 % annually), while over the same period electricity consumption in industry decreased by 8.4 %. The increased consumption of electricity in the services sector was due to the growth of the sector Europe wide. Electricity consumption in industry decreased mainly because of less activity in the sector and increased energy savings.

The consumption of natural gas decreased by 12.2 % in the period 2005-2017 (1.1 % annually). Natural gas consumption decreased in the industry sector (18.4 %) and in the households sector (12.6 %). Natural gas consumption in the services sector increased by 3.3 %. Natural gas consumption in the households sector shows on average a downwards trend, resulting from the better thermal performance of buildings.

The consumption of solid fuels decreased by 17.3 % (1.6 % annually). In absolute terms, this reduction is mainly accounted for by the industry sector. 

The trends in the consumption of solid fuels in households and natural gas has relatively large year-to-year variations due to weather conditions, cold winters leading to increased consumption of those fuels.

 

Current progress towards energy efficiency targets

In accordance with the Energy Efficiency Directive (2012/27/EU), the EU Member States have set up national indicative targets that, collectively, should help the EU to reach its 20 % energy efficiency target by 2020. In 2017, the EU's final energy consumption rose above the indicative trajectory to 2020 for the first time in 7 years. Preliminary EEA estimates of  final energy consumption in 2018 indicate levels that continue to exceed the indicative trajectories. Therefore, achieving the 2020 targets is increasingly uncertain

In 2017, 16 Member States were in line with or below their linear trajectories for final energy consumption. If maintained until 2020, the pace of reductions (or limited increases) observed since 2005 should allow these 16 Member States to meet their 2020 final energy targets. However, 12 Member States had not reduced their final energy consumption enough to stay below their linear trajectories. This constitutes a decline from 2016, when 19 Member States stayed below their trajectories. According to preliminary EEA data for 2018 on final energy consumption, the number of Member States that have sufficiently reduced their consumption decreased even further to 14 Member States. 

Supporting information

Indicator definition

Final energy consumption covers the energy supplied to the final consumer for all energy uses. It is calculated as the sum of the final energy consumption of all sectors. These sectors are disaggregated to cover industry, transport, households, services and agriculture.

The indicator can be presented in relative or absolute terms. The relative contribution of a specific sector is measured as the ratio of the final energy consumption of that sector to the total final energy consumption, calculated for each calendar year. It is a useful indicator that highlights a country's sectoral needs in terms of final energy demand.

Units

Final energy consumption is measured in million tonnes of oil equivalent (MTOE).


 

Policy context and targets

Context description

Environmental context

The trends in final energy consumption by fuel type and by sector provide a broad indication of progress towards reducing final energy consumption and the associated environmental impacts by the different end-use sectors (the transport, industry, services and households sectors). The type and magnitude of energy-related pressures on the environment (greenhouse gas emissions, air pollution, etc.) depend both on the sources of energy and on the total amount of energy consumed. One way of reducing energy-related pressures on the environment is to use less energy. This may result from reducing the demand for energy services (e.g. demand for heat demand, or passenger or freight transport) or by using energy in a more efficient way (thereby using less energy per unit of activity) or a combination of these.

Policy context

On 19 June 2018, a political agreement on new rules for improving energy efficiency in Europe was reached between negotiators from the Commission, the European Parliament and the Council. The new regulatory framework includes an energy efficiency target for the EU for 2030 of 32.5 %, with an upwards revision clause by 2023. This update to the Energy Efficiency Directive, proposed by the Commission on 30 November 2016, includes a 30 % energy efficiency target for 2030.

  • COM(2013) 762 final — Communication from the Commission to the European Parliament and the Council 'Implementing the Energy Efficiency Directive — Commission Guidance'.
  • 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 the 2020 objectives and setting out a plan to meet the long-term target of reducing domestic emissions by 80 to 95 % by the middle of the 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(2015) 80 final — the Energy Union Package — Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank 'A framework strategy for a resilient energy union with a forward-looking climate change policy'. The Energy Union Package establishes a framework strategy for a resilient energy union with a forward-looking climate policy. It includes a roadmap that sets actions for security of supply, the internal energy market, energy efficiency, greenhouse gases and research and innovation.
  • Directive (EU) 2018/2002 on energy efficiency.
  • Regulation (EU) 2018/1999 on the governance of the energy union and climate action — this regulation sets out the necessary legislative foundation for reliable, inclusive, cost-efficient, transparent and predictable governance of the energy union and climate action.

Earlier legislation

In 2009, the Council adopted the climate-energy legislative package containing measures to fight climate change and promote the use of renewable energy. This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020. The climate action and renewable energy (CARE) package includes the following main policy documents:

  • 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 2009/31/EC of the European Parliament and of the Council on the geological storage of carbon dioxide;
  • Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources;
  • Community guidelines on state aid for environmental protection (2008/c 82/01);
  • Directive 2008/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community;
  • 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;
  • Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 'Second Strategic Energy Review — An EU energy and solidarity action plan' (COM(2008) 781 final);
  • strategic review of short-, medium- and long-term targets on EU energy security;
  • Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 'Sustainable consumption and production and sustainable industrial policy action plan' (COM(2008) 397 final).

The strategy is meant to further sustainable consumption and production and promote sustainable industrial policy.

EEA reference

Targets

The 2012 Energy Efficiency Directive establishes a set of binding measures to help the EU reach its 20 % energy efficiency target by 2020. Under this directive, all EU countries are required to use energy more efficiently at all stages of the energy chain, from its production to its final consumption. To reach the EU's 20 % energy efficiency target by 2020, individual EU countries have set their own indicative national energy efficiency targets. Depending on country preferences, these targets are based on primary and/or final energy consumption, primary and/or final energy savings or energy intensity. New national measures have to ensure major energy savings for consumers and industry. To help officials in EU countries implement the Energy Efficiency Directive, the European Commission publishes guidance notes (COM(2013) 762). 

Related policy documents

 

Methodology

Methodology for indicator calculation

Technical information

  1. Data sources
    Final energy consumption: Eurostat (http://ec.europa.eu/eurostat/web/energy/data).
    Final energy consumption, non-EEA countries: International Energy Agency (IEA) (http://www.iea.org/statistics/topics/energybalances/).
    Final energy consumption is one of the EEA’s core indicators. More information can be found at http://www.eea.europa.eu/data-and-maps/indicators/about
  2. Description of data/indicator definition
    Final energy consumption covers energy supplied to the final consumer for all energy uses. It is calculated as the sum of the final energy consumption of all sectors. These are disaggregated to cover the industry, transport, households, services and agriculture sectors.
    The indicator can be presented in relative or absolute terms. The relative contribution of a specific sector is measured by the ratio of the final energy consumption of that sector to total final energy consumption calculated for a calendar year. It is a useful indicator that highlights a country's sectoral needs in terms of final energy demand.
  3. Geographical coverage
    The EEA had 33 member countries at the time of writing this indicator. These are the 28 EU Member States, plus Iceland, Norway, Switzerland, Liechtenstein and Turkey .
  4. Methodology and frequency of data collection
    Data are collected annually.
    Eurostat metadata: http://ec.europa.eu/eurostat/ramon/index.cfm?TargetUrl=DSP_PUB_WELC
  5. Methodology of data manipulation
    The average annual rate of growth is calculated using the following: [(last year/base year) ^ (1/number of years) - 1] × 100.
  6. Coding (used in the Eurostat database) and specific components of indicator
    Numerator: final energy consumption (FC_E) = final energy consumption industry (FC_IND_E) + final energy consumption transport (FC_TRA_E) + final energy consumption households (FC_OTH_HH_E) + final energy consumption commercial and public services (FC_OTH_CP) + final energy consumption agriculture (calculated as final energy consumption agriculture/forestry (FC_OTH_AF_E) + final energy consumption fisheries (FC_OTH_FISH_E) + final energy consumption other sectors (FC_OTH_NSP_E)).
    If needed for calculating shares of total energy consumption, a denominator is used: (total) final energy consumption (FC_E).
    This was done for TOTAL — all products; O4000XBIO — total petroleum products; E7000 — electrical energy; G3000 — natural gas; and C0000X0350-0370 — solid fuels.
  7. Coding (used in the IEA database) and specific components of indicator
    • Reports: Energy balances of non-OECD countries and Energy balances of OECD countries.
    • Name: Energy Balances.
    • Products: Total; Flow; and Final Consumption — Flow.
    • Memo: Feedstock use in the petrochemical industry.
  8. Early estimates of 2018 ('approximated' or 'proxy') data for final energy consumption were prepared by the EEA and its European Topic Centre on Air Pollution and Climate Change Mitigation (ETC/ACM); see https://www.eea.europa.eu/data-and-maps/data/approximated-estimates-for-the-primary-2

         The estimated indicative national targets for 2020 are based on the national energy efficiency plans for 2018 or earlier if 2018 plans are not available (see https://ec.europa.eu/energy/en/topics/energy-efficiency/energy-efficiency-directive/national-energy-efficiency-action-plans).


Methodology for gap filling

No gap filling was applied.

Methodology references

No methodology references available.

 

Uncertainties

Methodology uncertainty

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

Any cross-country comparison of the distribution of final energy consumption among sectors will have to be accompanied by a relevant measure of the importance of the sector in the economy, as the sectoral share also depends on a country's economic circumstances. Because the focus is on the reduction of final energy consumption and not on the sectoral redistribution of such consumption, trends in the absolute values are preferred, as they are a more meaningful indicator of progress. However, even if the same sectors in two countries are equally important to the economy, the gross (primary) consumption of energy needed before it reaches the final user might draw from energy sources that pollute the environment in different ways. Therefore, from an environmental point of view, the final energy consumption of a sector should be analysed in that broader context.

The sectoral breakdown of final energy consumption includes the industry, transport, households, services, agriculture, fisheries and other sectors. The inclusion of the agriculture and fisheries sector together with the services sector is however questionable given their divergent trends. Separate assessments are therefore made where appropriate. It is worth noting that, according to Eurostat, final energy consumption in agriculture data are not very reliable and mainly reflect consumption from engines used for agricultural transportation. A new definition is now used in energy questionnaires to be more in line with the Intergovernmental Panel on Climate Change (IPCC) guidelines.

Data sets uncertainty

Strengths and weaknesses (at data level)

Officially reported, annually updated data are used, with no obvious weaknesses.

However, from 2019, Eurostat changed the methodology used for calculating energy balances, which changed the energy consumption data compared with previous years. Therefore, this year’s results and those of previous years are less comparable. More information on these changes can be found in the Energy balance guide and an online Eurostat document.

Data have traditionally been compiled by Eurostat through the annual joint questionnaires of Eurostat and the IEA, 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 (https://ec.europa.eu/eurostat/cache/metadata/de/nrg_quant_esms.htm).

Rationale uncertainty

No uncertainty has been specified

Data sources

Other info

DPSIR: Driving force
Typology: Descriptive indicator (Type A - What is happening to the environment and to humans?)
Indicator codes
  • ENER 016
Frequency of updates
Updates are scheduled once per year
EEA Contact Info

Permalinks

Geographic coverage

Temporal coverage

Dates

Topics

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