5. Energy savings from selected efficiency measures in the Nordics

This chapter highlights the energy savings resulting from the implementation of selected measures across the Nordic countries aimed at improving energy efficiency. The goal is to provide insights rather than a comprehensive analysis of all measures. Data comparison can be challenging due to differing calculation methodologies, policies, and technological maturity. A full understanding of each country's approach requires a consideration of their unique frameworks and priorities.

Energy savings can be expressed through energy saving potential and energy saving effect, where the former outlines the maximum achievable savings in an ideal setting, while the latter reflects the tangible outcomes of implementing an energy efficiency measure in real-world scenarios. Assessing energy saving potential involves comparing the measure's impact on reducing energy consumption to a baseline scenario where no energy-saving measure is applied. This assessment sets a benchmark for evaluating the performance of individual or combined energy efficiency measures

K. Tanaka, “Assessment of energy efficiency performance measures in industry and their application for policy,” Energy Policy, vol. 36, no. 8, pp. 2887–2902, Aug. 2008, doi: 10.1016/j.enpol.2008.03.032.

N. H. Sandberg, J. S. Næss, H. Brattebø, I. Andresen, and A. Gustavsen, “Large potentials for energy saving and greenhouse gas emission reductions from large-scale deployment of zero emission building technologies in a national building stock,” Energy Policy, vol. 152, p. 112114, May 2021, doi: 10.1016/j.enpol.2020.112114.

. In contrast, the energy saving effect is used to assess the actual impact of measures, such as policies, programmes, or initiatives, once they are implemented and applied in practical settings

B. Boza-Kiss, S. Moles-Grueso, and D. Urge-Vorsatz, “Evaluating policy instruments to foster energy efficiency for the sustainable transformation of buildings,” Current Opinion in Environmental Sustainability, vol. 5, no. 2, pp. 163–176, Jun. 2013, doi: 10.1016/j.cosust.2013.04.002.

X. Labandeira, J. M. Labeaga, P. Linares, and X. López-Otero, “The impacts of energy efficiency policies: Meta-analysis,” Energy Policy, vol. 147, p. 111790, Dec. 2020, doi: 10.1016/j.enpol.2020.111790.

Assessing the energy savings of measures is complex, as various factors, such as climate and the initial condition of the energy consumption, can influence the effectiveness of the measures. Additionally, the interaction between energy efficiency measures must be considered, as one measure can affect the performance of another.

For instance, in buildings, installing thermal insulation can reduce heating demand, thus reducing the total energy savings potential from installing a heat pump. Conversely, some measures can have reinforcing effects. For example, switching to energy-efficient lighting may slightly increase the need for heating, thereby enhancing the impact of installing a heat pump.

Additionally, it is crucial to consider the possibility of a rebound effect, where an energy-saving measure may not produce the expected results as indicated by theoretical calculations. For example, households that install heat pumps might increase the indoor temperature to a more comfortable level while maintaining the same energy cost as before the installation, thereby not reducing the actual energy consumption as much as anticipated.

Energy efficiency measures often bring multiple benefits, such as improved comfort, indoor climate and health outcomes, in addition to reducing energy consumption. This underscores the importance of a holistic and nuanced approach to assessing the overall impact of energy efficiency measures, considering various interconnected factors

S. Sorrell, “The Rebound Effect: Definition and Estimation,” in International Handbook on the Economics of Energy, J. Evans and L. C. Hunt, Eds., Edward Elgar Publishing, 2009. doi: 10.4337/9781849801997.00014.

The next sections provide a country-by-country overview of energy-saving potential and the effects of selected energy efficiency measures in the building sector (5.1) and the industry sector (5.2). This includes detailed analyses for Denmark (5.1.1 and 5.2.1), Finland (5.1.2 and 5.2.2), Iceland (5.1.3 and 5.2.3), Norway (5.1.4 and 5.2.4), and Sweden (5.1.5 and 5.2.5).

5.1 Building sector

5.1.1 Denmark

For Denmark, tightening building regulations for energy efficiency was a pivotal energy-efficiency measure implemented in 2010. It introduced stricter energy frameworks and requirements for new buildings, alongside component requirements for installations and building envelopes in minor renovations of existing buildings. The measure resulted in 0.28 TWh of energy savings in 2010, with projections estimating annual savings of 3 TWh in 2016 and 5 TWh in 2020

Danish Energy Agency, “The Second Danish National Energy Efficiency Action Plan under Directive 2006/32/EC (NEEAP 2),” 2011. [Online]. Available: https://circabc.europa.eu/ui/group/8f5f9424-a7ef-4dbf-b914-1af1d12ff5d2/library/59af32b5-6ae0-45b2-8110-6fe4a9c009c6/details

In a national study from 2021,

J. Kragh and S. Aggerholm, “Varmebesparelse i eksisterende bygninger. Segmentering [Heat savings in existing buildings. Segmentation ],” BUILD Rapport 08, 2021. [Online]. Available: https://vbn.aau.dk/ws/portalfiles/portal/410909490/BUILD_Rapport_2021_08.pdf

, it is noted that renovating buildings and upgrading the building envelope can reduce total heating demand by 10.1 TWh/year, equivalent to 20.5% of the current heating demand, assuming that indoor temperature after renovation and additional insulation are raised to the levels typical in similarly insulated buildings. If indoor temperatures are maintained at pre-renovation levels, the savings from renovation would instead amount to 15.1 TWh/year, representing 30.7% of the current heating demand.

The promotion of energy-efficient appliances and equipment constitutes a crucial aspect of Denmark's endeavours to enhance energy efficiency. In 2024, a study on energy savings from Ecodesign and Energy Labelling Directivesin the Nordics

Nordic Energy Research, “Energy Savings from Ecodesign and Energy Labelling in the Nordics,” 2024. [Online]. Available: http://dx.doi.org/10.6027/NER2024-03

highlighted significant savings in the region. The top-down method scaled EU savings from the 2023 Ecodesign Impact Accounting report

European Commission. Directorate General for Energy., Ecodesign impact accounting annual report 2023 - Overview and status report. Publications Office of the European Union, 2024.

, while the bottom-up method used updated sales data and rescaled energy labels from 2021. The revised top-down calculations for Denmark project annual primary energy savings for 2030 (with final energy savings in parentheses) as 27.52 TWh/year (16.34 TWh/year).

5.1.2 Finland

For Finland, the improvement of energy efficiency in the existing building stock, reducing the energy used for heating, cooling, ventilation, and water heating systems in buildings, is anticipated to result in an 8 TWh/year reduction in total heating energy consumption by 2050, representing an 11% decrease from the 2020 level. This measure is part of the long-term renovation strategy spanning from 2020 to 2050

Finnish Energy Authority, “Long-term renovation strategy 2020-2050: Finland. Report according to Article 2a of Directive (2010/31/EU) on the energy performance of buildings, as amended by Directive 2018/844/EU,” 2020. [Online]. Available: https://energy.ec.europa.eu/system/files/2020-04/fi_2020_ltrs_en_0.pdf

. While not directly an energy efficiency measure, the expected increase in average outdoor temperatures due to climate change is predicted to lower the need for space heating, contributing to a further 9 TWh/year reduction, or a 12% decrease in total heating energy consumption in buildings by 2050, compared to the 2020 level. The adoption of heat pumps in single-family and terraced houses, as outlined in the National Climate and Energy Strategy of 2022

Finnish Ministry of Economic Affairs and Employment, “Carbon neutral Finland 2035 – national climate and energy strategy,” 2022. [Online]. Available: https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/164323/TEM_2022_55.pdf?sequence=4&isAllowed=y

, offers a promising avenue for energy savings, with a potential of 12 TWh/year by 2030. Similarly, building regulations focusing on energy efficiency in both new construction and renovation are set to contribute substantially to energy savings, with projections of 9 TWh/year and 4 TWh/year by 2030, respectively.

Significant energy savings also result from the implementation of Ecodesign and Energy Labelling Directives in Finland. Updated projections for 2030 estimate a primary energy savings at 41.58 TWh/year and final energy savings at 24.07 TWh/year

Nordic Energy Research, “Energy Savings from Ecodesign and Energy Labelling in the Nordics,” 2024. [Online]. Available: http://dx.doi.org/10.6027/NER2024-03

The role of digitalisation in enhancing energy efficiency is increasingly significant. One milestone was the roll-out of remote-readable smart meters for electricity, which was completed in 2013 and now feeds data into the Finngrid Dathub, which provides valuable data for optimising energy use

Fingrid, “Datahub.” Accessed: Dec. 02, 2024. [Online]. Available: https://www.fingrid.fi/en/electricity-market/datahub/

. The utilization of IoT sensors for monitoring indoor conditions and adjusting HVAC systems accordingly is becoming more common, especially among large real estate owners.

5.1.3 Iceland

A study from November 2023 presents a comprehensive analysis of Iceland's potential for improved energy efficiency in electricity consumption across various sectors

IMPLEMENT Consulting Group, “No wasted energy. Uncovering the electricity efficiency potential in Iceland,” 2023. [Online]. Available: https://library.arcticportal.org/2833/1/2023%20No%20wasted%20energy.pdf

. The study identifies significant opportunities for electricity savings, even as it underscores the country's reliance on expanding electricity generation alongside efficiency improvements. Iceland's energy supply, especially electricity, faces increasing pressure due to growing demand (15% over the last decade, with sectors other than aluminium seeing a 40% increase). The study identifies a potential for approximately 1.5 TWh/year in electricity savings, equating to around 8% of total electricity consumption in 2022. These savings span various sectors, including services, households, and energy-intensive industries. Notably, 24% of this potential is realisable over the next five years, with an additional 53% achievable over the next decade. It is important to note that potentials are ranked by feasibility, as some savings are challenging to achieve.

Regarding commercial and public services, about 0.32 TWh/year of savings potential is identified mainly through LED lighting, efficient appliances, and improved building management systems. For households, the study sees a potential for around 0.058 TWh/year in savings from well-known technologies without detrimental costs, primarily in the service sector.

In Iceland, the implementation of Ecodesign and Energy Labelling Directives is projected to yield a primary energy savings of 1.93 TWh/year by 2030, with final energy savings estimated at 0.97 TWh/year. This represents significantly lower savings compared to other Nordic countries, where primary energy savings are projected to be between 14 to 26 times higher, ranging from 28 TWh/year to 51 TWh/year

Nordic Energy Research, “Energy Savings from Ecodesign and Energy Labelling in the Nordics,” 2024. [Online]. Available: http://dx.doi.org/10.6027/NER2024-03

5.1.4 Norway

A study by NVE published in 2022

The Norwegian Water Resources and Energy Directorate (NVE) and The Norwegian Building Authority (DiBK), “Underlag for langsiktig strategi for energieffektivisering ved renovering av bygninger [Foundation for the long term strategy for energy efficiency by renovation of building],” Mar. 2022.

estimates the economic potential for energy efficiency improvements in buildings at 23.6 TWh/year, calculated using a 4% discount rate and a levelised cost of energy (LCOE) below 1 Norwegian krone (NOK)/kWh for measures involving building envelope upgrades, technical system enhancements, and energy management. This potential represents the total achievable energy savings through cost-effective measures (those with an LCOE under 1 NOK/kWh). Non-residential buildings exhibit the largest potential at 11.8 TWh/year, followed closely by single-family houses at 10.1 TWh/year, while apartment buildings present a potential of 1.7 TWh/year.

The economic potential for energy efficiency encompasses several key areas, such as:

Building envelope measures: These have a potential of approximately 12 TWh/year. This category includes measures, such as adding insulation to roofs and walls, particularly considering the additional cost of insulation when siding or roofs are being replaced anyway.
Upgrading technical systems: This area has a potential of just under 9 TWh/year, including measures on ventilation systems.
Energy management: Measures in this category have a potential of 3 TWh/year.
Heat pumps: The potential for heat production using heat pumps is close to 8 TWh/year. However, this potential cannot be directly added to the other categories. Implementing measures that reduce a building's energy demand will decrease the potential for heating with heat pumps.

In the NVE study, the figures primarily reflect economically viable potential from a socio-economic perspective, rather than private economic profitability. Regarding regulatory policy measures, a study from 2014

Multiconsult, “Konsekvensvurdering Energiregler 2015 [Impact Assessment of the 2015 Energy Regulations],” 2014. [Online]. Available: https://www.dibk.no/globalassets/02.-om-oss/rapporter-og-publikasjoner/konsekvensvurdering_energiregler.pdf

estimated that the implementation of the new building regulation (TEK17) in 2015 have resulted in significant energy savings by 2020, with cumulative net savings of 0.9 TWh and 0.83 TWh of delivered energy, compared to keeping the TEK10 building regulation.

In Norway, the application of Ecodesign and Energy Labelling Directives is expected to achieve primary energy savings of 35.50 TWh/year by 2030, with final energy savings projected at 17.42 TWh/year

Nordic Energy Research, “Energy Savings from Ecodesign and Energy Labelling in the Nordics,” 2024. [Online]. Available: http://dx.doi.org/10.6027/NER2024-03

5.1.5 Sweden

A strategy, provided by Fossilfritt Sverige, outlines an ambitious plan to enhance energy efficiency across various sectors in Sweden by 2030, contributing to the country's fossil-free competitiveness. It emphasizes that while Sweden's energy consumption has remained stable since the 1970s, despite population growth and economic development, there remains a significant untapped potential for energy efficiency improvements

Fossil Free Sweden, “Strategi för fossilfri konkurrenskraft. Effektiv användning av energi och effekt [Strategy for fossil-free competitiveness. Efficient use of energy and power],” 2023. [Online]. Available: https://fossilfrittsverige.se/wp-content/uploads/2023/02/FFS_Strategi_Energi_Tryck_V2-1-1.pdf

Regarding the building sector, the total energy efficiency potential is estimated at 19 TWh/year.

For multi-dwelling units by 2030 the energy efficiency potential is estimated to at least 8 TWh/year, of which 7.5 TWh/year comes from district heating and 0.5 TWh/year from electricity. A profitable saving potential of over 6 TWh/year by 2030 has been identified for multi-dwelling units, not including household electricity. For Sweden's over two million single-family houses, there is a cautious estimate of releasing 8 TWh/year of electricity by 2030. The measures with the greatest potential for energy efficiency in single-family homes include smarter heating system controls, more efficient water fixtures, and additional insulation of attics. The strategy estimates that energy efficiency improvements corresponding to 3 TWh/year by 2030 can be implemented within commercial and public buildings, of which 2 TWh/year comes from district heating and 1 TWh from electricity. Energy efficiency improvements in commercial buildings are generally more challenging due to the diversity of building types and operations.

In Sweden, the implementation of Ecodesign and Energy Labelling Directives is projected to result in the highest energy savings among the Nordic countries. By 2030, primary energy savings are estimated at 51.01 TWh/year, with final energy savings reaching 25.85 TWh/year

Nordic Energy Research, “Energy Savings from Ecodesign and Energy Labelling in the Nordics,” 2024. [Online]. Available: http://dx.doi.org/10.6027/NER2024-03

5.2 Industry sector

5.2.1 Denmark

Focusing on the industry sector, a national report dated 2022

Danish Energy Agency, “Kortlægning af energiforbrug og opgørelse af energisparepotentialer i produktionserhvervene [Mapping of energy consumption and assessment of energy-saving potentials in the manufacturing industries],” 2022. [Online]. Available: https://ens.dk/analyser-og-statistik/analyser/analyser-af-dansk-erhvervslivs-energiforhold

has provided detailed quantitative information on energy-saving potentials across various applications and processes. The work covers the manufacturing industry, agriculture, and construction and civil engineering sectors, encompassing a total of 42 industries, 21 end-uses, and 16 types of energy. Overall, it is observed that:

The energy-saving potential for thermal end-uses is 7% with payback periods of up to 4 years and double that for payback periods of up to 10 years.
The energy-saving potential for electrical end-uses is somewhat higher at 17% with payback periods of up to 4 years and up to 25% for payback periods of up to 10 years.

The following information with regards to thermal energy saving potential in the building and industry fields are outlined considering a payback period of 10 years:

Conversion and network losses: A potential savings of up to 18% can be realised, translating to 0.33 TWh/year at the highest investment level.
Heating and boiling: Potential savings of up to 13% are identified, equating to approximately 0.47 TWh/year for investments with longer payback periods.
Drying: This process has a significant potential for savings, with up to 26% or around 1.13 TWh/year achievable with comprehensive investments.
Evaporation: Savings potential is assessed at up to 17%, corresponding to about 450 TJ/year for the most comprehensive measures.
Distillation: Here, up to 18% savings are possible, translating to approximately 0.125 TWh/year for the highest investment levels.
Burning and sintering: A relatively lower potential of up to 3% is noted, equivalent to roughly 0.05 TWh/year, reflecting the high energy intensity and specialised nature of these processes.
Melting: Up to 7% savings can be achieved, which amounts to about 310 TJ/year, showcasing opportunities for efficiency improvements in high-temperature processes.

Other process heat: Represents a broad category with up to 15% savings potential, or approximately 0.09 TWh/year, indicating diverse opportunities across different industries.
Internal transport: Shows a potential of up to 9%, or roughly 0.48 TWh/year, highlighting the importance of efficient logistics and machinery operation.
Room heating: Potential savings of up to 13% are identified, translating to 0.42 TWh/year, emphasizing the importance of efficient building and process heating.

The following information with regards to electric energy saving potential in the building and industry fields are outlined, considering a payback period of 10 years:

Room cooling: Potential savings of up to 28%, equivalent to 0.02 TWh/year for the most comprehensive measures.
Lighting: Significant savings potential of up to 22%, translating to 0.21 TWh/year, reflecting the impact of transitioning to more efficient lighting solutions.
Pumping: Potential savings of up to 25%, which amounts to 0.24 TWh/year, showcasing the importance of efficient pump systems.
Cooling and freezing: Savings potential of up to 26%, equivalent to approximately 0.21 TWh/year, highlighting opportunities in refrigeration efficiency.
Room ventilation: Potential savings of up to 28%, translating to 0.25 TWh/year, indicating the impact of optimizing ventilation systems.
Fans: A potential savings of up to 32%, or roughly 0.27 TWh/year, emphasizing the benefits of improving fan efficiency.
Compressed air systems: Significant potential savings of up to 30%, translating to 0.23 TWh/year, reflecting the high energy use and savings opportunities in compressed air systems.
Hydraulics: Potential savings of up to 33%, equivalent to 0.07 TWh/year, indicating efficiency opportunities in hydraulic systems.
Other electric motors: Savings potential of up to 22%, which amounts to 0.49 TWh/year, highlighting the importance of motor system efficiency across various applications.
IT and other electronics: Potential savings of up to 15%, translating to 0.05 TWh/year, showcasing opportunities for reducing energy consumption in IT and electronic equipment.
Other electric uses: Savings potential of up to 27%, equivalent to approximately 0.17 TWh/year, covering a broad range of miscellaneous electric services.

In the consulted study, calculations of electrification potentials indicate a very significant reduction in primary energy consumption for most end uses, for example, a 45% reduction for drying, a 75% reduction for distillation – but only a 4% reduction for firing/sintering (high temperature). Thus, the total final energy consumption of industry could be halved (49% saving) through full electrification. This reduction is expected to increase towards 2050 as new high-temperature heat pumps are anticipated to be developed.

5.2.2 Finland

In Finland, the potential for energy savings through various proposed measures highlights significant opportunities for further reducing energy consumption and increasing efficiency within the industry sector. Combined heat and power (CHP) play a crucial role in the country's energy production landscape, accounting for more than one-third of all electricity production, significantly higher than the EU average of 12%. In the realm of district heating, CHP's contribution is even more pronounced, providing 70% of the total heat. This efficient use of primary energy through CHP results in considerable energy savings, with approximately one-tenth of the country's primary energy use being saved, underscoring the efficiency and effectiveness of CHP systems in energy production and heating

Minister of the Environment, Energy and Housing Finland, “Finland’s Seventh National Communication under the United Nations Framework Convention on Climate Change,” 2017. [Online]. Available: https://stat.fi/media/uploads/tup/khkinv/fi_nc7_final.pdf

. The following energy efficiency measures and savings are outlined in the National Climate and Energy Strategy of 2022

. Waste heat recovery and utilisation represents a burgeoning field with substantial potential for energy savings. Currently, only 5 TWh/year of low-temperature waste heat from sources such as wastewater and ventilation are utilised, with a total potential of 35 TWh/year. Particularly, 15 TWh/year of this potential comes from industrial plants, indicating a significant opportunity for increased utilisation of waste heat in district heating systems, pending further actions to make this low-temperature heat usable. It should be noted, however, that not all industries producing waste heat are in close vicinity to district heating grids. Renewable energy investments in agriculture, focusing especially on solar power plants and replacing oil boilers by renewable energy sourced boilers, are expected to contribute 4 TWh/year by 2030. This measure illustrates the growing emphasis on integrating renewable energy sources into agricultural operations, highlighting the sector's potential contribution to the broader energy savings and sustainability goals. Surplus heat utilisation, involving the use of high-temperature heat from industrial processes or heat from heat pumps, offers an additional 1.6 TWh/year by 2030. This heat could be directly utilised in district heating networks, providing a practical example of how industrial by-products can be repurposed to contribute to the heating needs of communities.

5.2.3 Iceland

In Iceland, the energy savings potential related to the utilization of industrial waste heat

is estimated to 0.357 TWh/year. This includes direct use for electricity generation or efficient heating applications.

The aluminium industry, accounting for 64% (12.5 TWh) of Iceland’s total net electricity consumption in 2022, has an energy savings potential of approximately 0.112 TWh/year, which is deemed likely achievable in the next decade, and an additional ‘difficult to achieve’ potential for 0.351 TWh/year. In general, energy efficiency measures in the aluminium industry can be applied to the smelting process (electrolysis), anode production, and the electrification of the cast house. Since cast houses in Iceland are already largely electrified, the greatest potential for improving energy efficiency in the Icelandic aluminium industry lies in optimising the smelting process.

Agriculture industry in Iceland has an estimated 0.043 TWh/year in potential electricity savings, driven by improvements in farming activities such as irrigation, ventilation, and milk cooling, as well as more efficient use of electricity in greenhouses for lighting and pumping.
Fishmeal factories have also significant energy-saving potential, up to 0.024 TWh/year, if all Icelandic production operates at best-in-class efficiency, driven by improvements such as lowering cooking temperatures and optimizing energy-intensive processes like drying, evaporation, and cooking.

Given the relatively low cost of energy in Iceland, not all identified efficiency measures may be economically attractive without policy intervention. A set of policies needs to be enacted, along with technology adaptation, before these savings can be realised.

5.2.4 Norway

In a national report dated 2010

Enova, Potensial for energieffektivisering i norsk landbasert industri [Potential for energy efficiency in Norwegian land-based industry]. in Enovarapport, no. 5. 2009.

,it was stated that the Norwegian land-based industry has a substantial technical potential to reduce its net energy use by 29% or 27 TWh/year compared to the baseline for 2020. The report distinguished between the potential for all measures for improved energy efficiency (27 TWh/year) and measures that are economically reasonable (22 TWh/year). Out of these 22 TWh, 12 TWh is profitable and stems from the reduced use of primary energy (electricity, oil, gas, and coal) in the industry. An additional 10 TWh can be derived from the external utilisation of waste heat from the industry, which could help reduce the use of primary energy in society at large. However, realizing this potential requires sufficient off-take (demand and infrastructure) for the waste heat.

The report elaborates on 120 individual measures that make up the total technical energy savings potential. The 120 measures can be divided into five main categories: 1) internal and external utilisation of low-temperature waste heat (13.3 TWh), 2) electricity production and cogeneration plants (1.8 TWh), 3) optimisation of support systems (4.3 TWh), 4) improved operation and control (2.5 TWh), as well as 5) optimisation of industry-specific core processes (4.9 TWh). In 2023, the potential for energy savings by using waste heat in Norway was estimated at 20 TWh/year, with 6 TWh/year originating from relatively easily applicable heat sources in the temperature range of 100–250°C.

The Prosess21 Expert Group report forecasts the power consumption of the process industry until 2050, suggesting an annual energy efficiency potential of 0.1–0.4% from 2020 to 2050. This translates to an overall efficiency potential of 1–5 TWh/year, assuming an increase of 3 TWh/year from 42 TWh in 2020. While many industrial processes have a minimum consumption threshold and have already optimised their energy use, there is still potential for new technologies to provide further savings

LO Norge and NHO, “Strategi for energieffektivisering og lokal solkraft [Strategy for Energy Efficiency and Local Solar Power],” 2023. [Online]. Available: https://www.lo.no/contentassets/d760d8ebcd27421481e666c4fae8af01/strategi-for-energieffektivisering-og-lokal-solkraftproduksjon.pdf

5.2.5 Sweden

In Sweden, a cautious estimate suggests that 15 TWh/year could be saved in the industrial sector by 2030, focusing on process heat and machine operation efficiency improvements

. This sector's potential is significant, given its historical dependence on fossil fuels and the substantial benefits of transitioning to more efficient processes and technologies. The efficiency potential within the industrial sector includes 8 TWh/year from process heat and 5 TWh/year from machine operation.

CHP and waste heat recovery play pivotal roles in optimizing energy use, particularly in electricity and district heating production. CHP accounts for a substantial portion of electricity production (more than one-third) and district heating (70% of total heat produced), emphasizing its efficiency and potential for energy savings. The strategy highlights an overall potential for energy efficiency improvements equivalent to 34 TWh/year, or about 9% of the total energy usage in 2020. This includes approximately 14.5 TWh/year from electricity, 9.5 TWh/year from district heating, and around 10 TWh/year from various fuels. Flexibility measures are emphasised, with a potential to free up to 3.5 GW of power by 2030, demonstrating the importance of flexible energy use in mitigating peak demand and enhancing the efficiency of the energy system.