Europe stands at a critical juncture in its energy journey. Rising electricity demand and increasing regulatory pressures are converging to challenge our ability to deliver on net zero commitments – while also making it harder for European companies to stay competitive against global peers with lower cost bases. But in the race to decarbonise and secure energy supplies, one solution remains remarkably underutilised and widely misunderstood: energy efficiency.

There’s a myth that only new, groundbreaking technologies will help us achieve our climate goals. While innovation will undoubtedly play a role, the truth is we already have many of the tools we need. What’s missing is the scale of adoption and urgency. As we continue investing in renewable generation and upgrading infrastructure, we must simultaneously prioritise how efficiently we use the energy we already have. In the energy transition, efficiency isn’t an optional upgrade – it’s a critical one. That’s why the International Energy Agency (IEA) calls energy efficiency the ‘First Fuel’.

A question of security and self-reliance
Today, over 60% of Europe’s energy is still imported, leaving its energy security vulnerable. The recent energy crisis underscored this vulnerability as prices spiked to historic highs, putting pressure on both manufacturers and citizens. On top of this external dependency, when it comes to energy the complexity of sustainability reporting regulations, persistent bureaucracy and slow pace of policy implementation, which vary dramatically across countries and industries, can create friction rather than clarity.

Against this backdrop, for some in the industry, the energy transition may still feel like an unwarranted upfront cost without an immediate payoff. But by cutting electricity consumption, minimising waste and extending equipment lifespan, companies can lower operational costs. And with payback periods as short as seven months in some applications, businesses don’t have to wait to benefit from cost reductions and lasting financial gains.

It’s not a question of technology readiness – it’s just a matter of being aware of the rewards, for the business and for the planet, and accelerating the deployment.

The opportunity is particularly relevant for heavy industry, which accounts for a large share of energy demand. Electric motors and the systems they drive consume over 45% of the world’s electricity, often powered by outdated systems, providing tangible possibilities for energy savings. If we were to adopt today’s most energy-efficient motor systems at scale, we could reduce global electricity consumption by up to 10%, equivalent to the amount of electricity used by 300 million households.

At a time when energy affordability, security and industrial competitiveness are more important than ever, these are opportunities that Europe cannot afford to ignore.

Renewable energy has made impressive strides, but we still face grid bottlenecks which cause delays, and uneven generation due to unpredictable weather. At the same time, electrification is accelerating in heating, transport and manufacturing, piling more demand onto an already overworked system.

This is not to say that renewable energy hasn’t had a transformative impact on today’s energy landscape and we should stop optimising the energy mix. But if Europe wants to meet its 2030 and 2050 targets, energy efficiency must move from the margins to the mainstream – starting now.

In the energy transition, efficiency isn’t an optional upgrade – it’s a critical one. That’s why the International Energy Agency (IEA) calls energy efficiency the ‘First Fuel’.

Energy efficiency in action 
Beyond equipment upgrades, other measures are available to help to unlock energy efficiency gains with minimal disruption. For motors, energy appraisals allow businesses to identify quick wins and long-term savings. These audits gather real-time data on motor performance, load conditions and driven equipment rating, highlighting the potential for improvement such as integrating variable speed drives (VSDs).

Consider the example of Aurubis, Europe’s largest copper producer, which recently implemented a large-scale energy efficiency initiative at its Pirdop plant in Bulgaria. Working in partnership with ABB, the company replaced 460 outdated motors with high efficiency models, as well as integrating more than 300 VSDs across its operations. These upgrades are expected to reduce the plant’s energy consumption by 28%, saving around 25 GWh annually. In environmental terms, this translates to a reduction of 12,000 tonnes of CO₂ emissions per year, equivalent to removing approximately 2,600 cars from the road.

Energy efficiency is making a real impact even in municipal infrastructure. In Kulmbach, Germany, the central sewage treatment plant upgraded a key inlet pump with an ABB motor and drive. Running 24/7, the system is achieving projected energy savings of 7–10% – a massive win for public facilities facing rising energy costs. By cutting electricity use and emissions, the upgrade supports both local and national carbon-neutral goals.

Onwards and upwards
According to the IEA, doubling the global rate of energy efficiency by 2030 is critical to put us on track for net zero by 2050. And these gains are not hypothetical – many are achievable right now with proven technologies. For businesses, energy efficiency isn’t just a sustainability checkbox; it’s a strategic lever to reduce costs and strengthen competitiveness in a high-price environment. The urgency of this goal demands that we accelerate every solution possible, and energy efficiency is low-hanging fruit for businesses wanting to make a change.

The expertise, the technology, and the economic imperative are there – in Europe and beyond. All that remains is the will to act.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘From Heathrow to hospitals – why energy efficiency matters for the UK’. Since Labour’s general election win in 2024, energy has dominated the political agenda but, somehow, energy efficiency still isn’t getting the attention it deserves. More renewable energy projects, for instance, are certainly positive for progressing net zero targets, but there are only so many new projects that you can push into an old and broken system, argues Jonathan Maxwell, Founder and CEO of investor Sustainable Development Capital.
• Find out how investing in energy efficiency is key to meeting climate goals, according to Alan Baird, Country Manager, UK and Ireland, Danfoss.