RATIO OF FINAL ENERGY CONSUMPTION TO TOTAL ENERGY CONSUMPTION

    Descrizione 1
    Update date
    Authors

    Antonio Caputo, Giulia Iorio, Francesca Palomba

    Abstract
    Immagine
    Abstract

    The ratio of final energy consumption to total energy consumption measures the overall efficiency of converting energy from primary sources. The difference between these two values corresponds to losses in conversion processes (such as electricity generation and oil refining), internal consumption of power plants, and distribution losses. From 1990 to 2022, the average ratio in our country (70.6%) has been higher than the European average (62.6%). In recent years, a significant increase in the ratio has been observed.

    Description

    The ratio between final energy consumption and total energy consumption measures the overall efficiency of converting the energy contained in primary sources. The difference between these two quantities corresponds to losses in conversion processes (such as electricity generation and oil refining), internal consumption of electricity generation plants, and distribution losses.

    Purpose

    To evaluate the overall efficiency of converting primary energy from various sources into usable energy, in order to improve the efficiency of energy supply.

    Policy relevance and utility for users
    It is of national scope or it is applicable to environmental issues at the regional level but of national relevance.
    It can describe the trend without necessarily evaluating it.
    It is simple and easy to interpret.
    It provides a representative picture of environmental conditions, environmental pressures, and societal responses
    It provides a basis for international comparisons.
    Analytical soundness
    Be based on international standards and international consensus about its validity;
    Be theoretically well founded in technical and scientific terms
    Presents reliability and validity of measurement and data collection methods
    Temporal comparability
    Spatial comparability
    Measurability (data)
    Adequately documented and of known quality
    Updated at regular intervals in accordance with reliable procedures
    Readily available or made available at a reasonable cost/benefit ratio
    An “adequate” spatial coverage
    An “appropriate” temporal coverage
    Main regulatory references and objectives

    Europe has updated its climate strategy framework, setting a target for greenhouse gas emissions reduction by 55% by 2030 compared to 1990 levels, at least 42.5% of renewable energy (a provisional agreement reached in 2023, with an intention to aim for 45%), and an 11.7% reduction in final energy consumption compared to the projections in the 2020 reference scenario. In line with the EU energy governance, Italy submitted the updated version of the National Integrated Energy and Climate Plan (PNIEC) to the European Commission on July 1, 2024. The PNIEC consolidates previous strategic documents and defines the measures necessary to achieve European goals on energy efficiency, renewable sources, and greenhouse gas emission reduction. Regarding final energy consumption, to contribute to meeting the EU binding target, the PNIEC states that Italy's consumption level, considering additional measures to existing policies, should amount to 102 Mtoe of final energy and 123 Mtoe of primary energy by 2030, still far from the targets calculated under Directive EED III of 93 and 111 Mtoe, respectively. Binding targets are also set for reducing final energy consumption through mandatory energy efficiency schemes defined under Article 7 of Directive 2018/2002/EU. These targets translate into a reduction in final energy consumption each year from 2021 to 2030, amounting to 0.8% of the average annual consumption from the 2016-18 triennium, through active policies. This target represents a cumulative reduction of 73.42 Mtoe from 2021 to 2030.

    As for the main national regulatory references for the 2020 targets, we cite Legislative Decree No. 102/2014, amended and integrated by Legislative Decree No. 73 of July 14, 2020, which includes the provisions for the transposition of Directive 2012/27/EU, as amended by Directive 2018/2002/EU. Regarding energy efficiency and 2030 targets, the following key regulatory acts are noted:

    • EU Regulation No. 2018/1999 of the European Parliament and Council of December 11, 2018, on the governance of the Energy Union.

    • EU Directive 2018/2002 (known as the EED Directive) on energy efficiency (which amends the previous Directive 2012/27/EU), transposed by Legislative Decree No. 73 of July 14, 2020. The decree incorporated amendments to Legislative Decree No. 102/2014.

    • Directive (EU) 2018/844, which modifies Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency (Energy Performance of Buildings Directive - EPBD), transposed by Legislative Decree No. 48 of June 10, 2020.

    • EU Directive 2018/2001 on the promotion of the use of energy from renewable sources.

    • Directive (EU) 2023/1791 on energy efficiency.

       

    DPSIR
    Response
    Indicator type
    Performance (B)
    References

    Database Eurostat

    Limitations

    The relevance of the indicator at the regional level is reduced, compared to the national level, due to the uneven distribution of electricity generation plants across the national territory.

    Frequenza di rilevazione dei dati
    Annuale
    Fonte dei dati
    EUROSTAT (Ufficio Statistico delle Comunità Europee)
    Data availabilty

    EUROSTAT (https://ec.europa.eu/eurostat/data/database)

    Spatial coverage

    National

    Time coverage

    1990-2022

    Processing methodology

    The data is calculated as the ratio between "Final Energy Consumption," defined as the sum of final energy consumption in the Industry, Transport, and Other sectors (Residential, Services, etc.), and "Gross Internal Energy Consumption," defined as primary production + recovered products + imports + stock variations - exports - bunkering.

    Update frequency
    Year
    Qualità dell'informazione

    The indicator is relevant as it provides fundamental information for evaluating the overall efficiency of converting primary energy from various sources into usable energy. The national data has been updated according to the Eurostat methodology. The indicator, available at the national level, can also be calculated at the regional level.

    State
    Good
    Trend
    Positive
    State assessment/description

    The indicator provides indirect information on the efficiency of conversion of primary energy sources. The national value of the indicator in 2022 was 74.8%, while the European average was 66.6% (Table 1).

    Trend assessment/description

    From 1990 to 2022, the average ratio between final energy consumption and total energy consumption in our country (70.6%) was higher than the European average for the period (62.6%) (Table 1 and Figure 1). Since 2011, an increasing trend in the ratio has been observed, similar to the European average, although with consistently lower values.

    Comments

    In 2022, the share of final energy consumption of our country compared to the 27 European countries was 12.3% (Table 2). Since 1990, when Italy's final energy consumption accounted for 11.5%, the percentage increased with some fluctuations until 2005, reaching 13.3% of European consumption. Subsequently, a decrease in the consumption share is observed until 2020, with a recovery in the following year. In 2022, national final energy consumption shows a 3.4% decrease compared to 2021 and a 15.8% reduction compared to 2005. At the European level, the 2022 decrease compared to 2021 was 3.9%, while the reduction compared to 2005 was 8.6%.

    Data
    Headline

    Table 1: Ratio between Final Energy Consumption and Gross Inland Energy Consumption in the European Union*

    Data source

    ENEA elaboration based on EUROSTAT data

    Note

    *Final energy consumption is defined as the sum of final energy consumption in the industry, transport, and other sectors (residential, services, agriculture, fisheries, and other NACE sectors);
    Gross inland energy consumption is defined as primary production + recovered products + imports + stock changes – exports – bunkering.

    Headline

    Table 2: Total Final Energy Consumption in the European Union*

    Data source

    EUROSTAT

    Note

    *Defined as the sum of final energy consumption in the industry, transport, and other sectors (residential, services, agriculture, fisheries, and other NACE sectors).

    Thumbnail
    Headline

    Figure 1: Ratio between Final Energy Consumption and Gross Inland Energy Consumption in Italy and the European Union*

    Data source

    ENEA elaboration based on EUROSTAT data

    Note

    *Final energy consumption is defined as the sum of final energy consumption in the industry, transport, and other sectors (residential, services, agriculture, fisheries, and other NACE sectors);
    *Gross inland energy consumption is defined as primary production + recovered products + imports + stock changes – exports – bunkering.

    English