The Renovation Wave can cut EU gas imports and reduce consumer bills
New Cambridge Econometrics analysis for the ROCKWOOL Group shows that the EU Commission Renovation Wave’s target of reducing heat demand by 60% across 35 million homes by 2030 will bring significant benefits across society and the economy.
The report evaluated the potential impact of 35 million homes across Europe undertaking deep renovations by 2030, as per the deep renovations scenario covered in the Renovation Wave.
- Reduced gas consumption from homes by up to 43,000 GWh across Europe annually. This is the equivalent to 25 of the world’s largest LNG gas carriers saved each year.
- Imports of gas into the EU cut by up to €3.3bn per year by 2030. This amounts to a reduction in imports equivalent to around €12.8bn cumulatively over the period to 2030.
- Household bills cut by around €400 per year in 2030 in renovated homes that are heated by gas (a reduction in gas heating costs of around 50%). This represents a significant saving as the average household energy bill across the EU27 was estimated to be around €1,500 in 2019.
- Significantly improved living standards for the approximately 80 million people living in the 35 million renovated buildings.
To maximise the benefits that can be realised from retrofitting schemes such as the Renovation Wave, policies should be designed in such a way that renovation is driven at pace and at scale, delivering homes that are fit for the future.
Jon Stenning, Associate Director at Cambridge Econometrics, said
Our analysis demonstrates the major role that building renovation can play in improving the resilience of the European economy. Delivering deep retrofits at scale, as envisaged in the Renovation Wave, will cut energy bills for some of Europe’s most vulnerable households, as well as reducing exposure to volatile gas prices across Europe.