Energy Efficiency First is a notion and guiding principle, whose primary aims are to ensure that (1) solely the energy required is produced, (2) investments in stranded assets are avoided, and (3) energy demand is reduced and managed so that it is cost-effective.

This guiding principle comes in complement to multiple EU objectives beyond energy policy and investments decisions for energy efficiency – including in sustainability, climate neutrality and green growth.

There is not simply a need to reduce fossil fuel consumption in order to achieve green and climate targets, but also to reduce energy production – and the principle emphasises this. Indeed, reduced energy demand helps to better estimate the investments required for the renewables energy transition.

Whilst this principle helps to guide EU policy in multiple domains, it also holds true for both the public and private sector. Quantifying the multiple benefits (with cost-benefit analyses) related to energy efficiency can also help companies within the private sector to better value energy savings and therefore better consider their energy demand and purchasing decisions.

Efficiencies can be compounded; advancing efficiency thanks to improvements and technological developments in ICT, networks and digital twins can be combined to further attain energy efficiencies. Digital twins, for example, can provide faster and more efficient approaches for the improvement of system performance, and result in energy efficiencies. There are a range of solutions and approaches that can be combined with the energy efficiency first principle to help reduce energy consumption and foster the energy transition in the private sector.

Read how the Energy Efficiency First principle guides EU energy policy in further detail here