Comparative analysis of energy efficiency trends and driving factors in the Baltic States

Abstract

The improvement of energy efficiency is an essential strategic objective of sustainable energy sector development in the Baltic countries and can significantly facilitate the transition to a low-carbon economy. The paper provides findings from comparative analysis of energy intensity trends during the period 2000–2018 in Estonia, Latvia and Lithuania in the context of energy and climate framework of the European Union (EU). Changes in energy intensity are analysed in each country on three stages: primary energy intensity, final energy intensity and sectoral energy intensity. Based on application of the Fisher Ideal Index, contribution from the increase of energy efficiency and from structural activity changes in the Baltic countries is revealed. The paper provides valuable insights from the detailed analysis of energy intensity in each country and comparison with average indicators in the EU-27 and other countries of the Baltic Sea Region (BSR). High energy conversion losses in Estonia, high share of energy intensive industries and fast increase of energy consumption in the Lithuanian transport sector are emphasized as factors limiting further increase of energy efficiency. The results confirm the need of new policies and relevant energy saving obligations in all three countries.