How first comes energy efficiency? Assessing the energy efficiency first principle in the EU using a comprehensive indicator-based approach

Abstract

The energy efficiency first (EE1) principle was defined and established as a leading principle of the European Union’s energy policy with the Clean Energy for All Europeans package in 2016. The principle requires demand resources to be considered on par with supply-side solutions and prioritized whenever they are less costly or deliver more value than alternative options. This approach should be applied in every planning process, decision-making, and investment regarding the energy sector. In order to examine to which degree the EE1 principle is actually implemented by the Member States, we developed a composite indicator, which consists of 13 criteria. These criteria capture the multiple facets of the EE1 principle and thus can also be used as a guide for the EU Member States in their operationalization of the EE1 principle. After the development of the methodology, the indicator-based approach is tested to assess the implementation of the EE1 principle in the national energy and climate plans of 14 Member States. The aim of this step is to demonstrate the feasibility of the indicator and its applicability as an assessment tool across different countries in the EU. The results imply that the fundamentals of the principle are understood and realized. Nevertheless, most countries would still fail to ensure an equal treatment between supply and demand-side resources and neglect the multiple benefits associated with energy efficiency improvements. However, those finding should be considered with caution since only limited data was used to test the operationalization of the indicator on the EE1 principle.