The Energy We Don’t Use is the Cheapest Energy 

Energy efficiency is at the forefront of EU priorities, but its application among enterprises will require great efforts.    

Energy efficiency is now a key pillar of the European Agenda on green transition, competitiveness, and energy security. The 2023 revised Energy Efficiency Directive (EED) establishes “energy efficiency first” as a legal standing principle that should guide policy-making and investments in all EU countries. Consequently, the mandate prioritises reducing energy demand rather than increasing production. While it is an ambitious and vital strategy, applying it represents a massive challenge for states and industries.  

The EED requires that EU countries collectively ensure an 11.7% reduction in energy consumption by 2030. To make this happen, the revised directive doubles the annual energy savings obligations by 2028. Specifically for the industrial sector – which accounted for 25.1% of the final energy consumption in 2022– the revised directive significantly changes the landscape. It expands the scope of energy audit obligations to all companies with high energy consumption, regardless of their size, meaning that small and medium-sized enterprises (SMEs) can now also fall under these obligations.

Specifically for the industrial sector – which accounted for 25.1% of the final energy consumption in 2022 – the revised directive significantly changes the landscape.

Additionally, the revised directive mandates that large industrial energy consumers implement energy management systems. 

This expansion of obligations to SMEs – exempt under the previous directive – creates new opportunities for energy savings across the EU. However, it also generates new administrative and financial burdens. Many SMEs have limited financial resources and lack in-house expertise in energy management, which makes compliance particularly challenging. In this context, Member States play a crucial role in supporting SMEs as they adapt to the new requirements. 

Many SMEs have limited financial resources and lack in-house expertise in energy management, which makes compliance particularly challenging.

Recognising this need, the revised directive includes an extensive list of support measures that EU countries should implement. Now, the next and most crucial step is turning these measures into reality at the national level. However, the programmes currently in place to implement the old EED appear insufficient to meet the more ambitious demands of the revised directive. 

A recent report from the LEAPto11 project, which studied implementation across 10 EU countries, found that only 30% of the analysed programmes related to the EED were targeted specifically at SMEs. Furthermore, only a few of these programmes directly address the new measures set out in the revised directive. This finding shows that Member States still have a long way to go in creating support systems for the EED. Nonetheless, the deadline for all Member States to transpose the measures is fast approaching – 11 October. 

Despite the challenges, the European Commission maintains that the benefits of implementing energy measures – particularly for SMEs – outweigh the costs. In an interview with REVOLVE at the EUSEW 2025, Robert Nuij, Deputy Head of Unit at the Directorate-General for Energy of the European Commission, stated that “by implementing recommendations coming out of energy audits, we see that companies can better innovate, are more competitive, and are driving more sustainability for their businesses.” In short, energy efficiency is worth the effort. It is essential for achieving climate goals, tackling energy poverty, and enhancing both competitiveness and energy security. As Nuij put it: “The energy we don’t use is the cheapest energy.” 

Energy efficiency is worth the effort. It is essential for achieving climate goals, tackling energy poverty, and enhancing both competitiveness and energy security.

What remains to be seen is how successful Member States will be in supporting enterprises to take this important step. The task demands coordinated efforts across sectors, strong involvement from Member States, and continued support from the EU through projects and support schemes.