Although technologies in the field of energy continue to grow day by day, Energy poverty has become a major problem in EuropeRenewable energy and energy efficiency are more developed than ever, but this phenomenon has not yet been fully combated. Without a universal official definition, energy poverty refers to the inability of a household to pay the cost of the energy needed to meet its basic needs, such as air conditioning, hot water or energy for household appliances.
The development of alternative energies has attempted to mitigate the problem, but despite the efforts of organizations, governments and companies, It is estimated that between 50 and 125 million people in Europe suffer from energy poverty.What are the consequences of this phenomenon and how can it be addressed from a structural perspective?
Energy poverty in Europe
When we talk about energy poverty, we are not only referring to the inability to pay electricity bills. This problem also affects people's well-being, the environment and the global economy. According to several studies, a family is considered to live in energy poverty when it spends more than 10% of their income on heating or other energy servicesThis is due to the combination of three main factors: Low incomes, high energy prices and low household energy efficiency.
The most vulnerable households are those that generate less income, generally due to unemployment, low-paid jobs or precarious situations. However, the Energy poverty also affects the middle class, especially when energy prices rise dramatically.
In some European countries, such as Spain and Portugal, around 20% of homes cannot maintain adequate temperatures in winterThis figure is double the European average, which shows a clear inequality in the distribution of energy resources. Countries such as Luxembourg or Finland, in contrast, have energy poverty rates of less than 3% thanks to their more efficient energy policies.
Consequences on health and the environment
The impact of energy poverty can manifest itself in many ways. Families who cannot afford adequate heating in the winter, or cooling in the summer, see their physical and mental health compromised. Energy poverty is linked to a Increased respiratory diseases, blood circulation problems and even excessive mortality during the winter.
In addition, there is a clear relationship between energy poverty and environmental deteriorationPoorly insulated homes can produce high greenhouse gas emissions as they consume more energy than is necessary to provide adequate heating or cooling. In Europe, residential buildings are estimated to emit one third of total CO2 emissions. Improving energy efficiency in homes could significantly reduce these figures.
Measures to combat energy poverty
Over the past few years, the European Union has stepped up its efforts to tackle energy poverty at continental level. In 2019, with the European Energy Policy Package, 'Clean energy for all Europeans', specific measures were introduced to protect vulnerable consumers and combat energy poverty through national energy and climate plans.
Furthermore, the 2020 'Wave of Renewal' Strategy One of its main objectives is to reduce energy poverty by renovating less efficient buildings. The idea is to double the rate of building renovation, with a priority focus on those with the worst energy conditions. It is estimated that improving thermal insulation could reduce the energy expenditure of the most vulnerable households by 50%.
In October 2021, the European Commission introduced a set of additional measures to deal with the rising energy prices, such as direct aid to consumers and businesses to alleviate the burden of energy bills.
More recently, in 2024, the Social Climate Fund in the EU, which will mobilise more than €86.700 billion to finance measures to help alleviate energy costs in the most vulnerable households. This fund will be key to helping Member States implement plans to improve energy conditions, especially in relation to heating and carbon pricing for transport.
Initiatives and international aid
International collaboration also plays a crucial role. Schneider Electric, in partnership with the NGO Ashoka, has launched the programme 'Social Innovation to Tackle Fuel Poverty', with the aim of identifying and supporting innovative proposals that combat energy poverty through social entrepreneurship.
These types of initiatives are key to finding sustainable solutions, such as installing renewable energy systems, improving thermal insulation in homes and promoting energy efficiency in household appliances.
Data collection and monitoring
Data collection is a fundamental pillar in the fight against energy poverty. In order to implement effective policies, it is important to know the areas where the problem is most serious. Countries such as Spain and Portugal stand out as the most affected, which has led to the introduction of specific social policies, such as the social energy bonus, which offers discounts for the most vulnerable households.
However, measuring energy poverty is complex, as it depends not only on energy expenditure itself, but also on the socioeconomic context. Governments have begun to implement different metrics, some based on energy expenditure in relation to income, and others on households' subjective perception of the adequate temperature in their homes.
El EU Energy Poverty Advisory Centre has developed tools such as the EPAH ATLAS, an online platform that allows local authorities to access data and examples of good practice across Europe, facilitating the coordination of efforts at regional and local level.
Local governments are key in this process, as they can implement measures adapted to the particularities of each territory, such as infrastructure improvements, energy reforms or awareness and training programmes in energy efficiency.
Despite all these efforts, the fight against energy poverty remains a major challenge, both due to the variability of the factors that cause it and the inequality in energy conditions between countries.
Over the past decade, energy poverty has affected millions of Europeans, both in countries with cold climates and those with extremely hot summers. The goal of reducing carbon emissions while ensuring that the most vulnerable people can access an affordable source of energy remains not only a social but also an environmental battle.