Saving energy: bringing down Europe’s energy prices
In June 2011 the European Commission proposed a new Directive on Energy Efficiency. Its purpose is to put forward new measures to meet the EU’s 20% by 2020 energy savings target, which at present rates will be missed by more than half.
Net savings for European businesses and consumers are projected to amount to an impressive €107 billion annually in 2020 if all cost-effective efficiency measures are implemented. This figure, however, looks only at avoided energy costs for businesses and consumers – i.e. the effect of buying less energy. To this one must add the indirect cost savings, which are the subject of this paper. It investigates each of the related mechanisms that have a positive impact on price developmen:
• Reduced demand will have a downward effect on fossil fuel energy prices
• Electricity prices on the spot market will be lower
• Fewer investments in energy infrastructure will be needed.
This Ecofys study was commissioned by Friends of the Earth Europe and Climate Action Network Europe.