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Jan Rosenow is an energy efficiency expert with the Regulatory Assistance Project.
Buying energy is 5 times more expensive than saving it
A useful metric for assessing how economic energy savings are is to compare them with the cost of consumed energy.
Analysis by the Regulatory Assistance Project shows that the cost of energy efficiency improvements delivered through public policies are typically around 2 cents (€) per kWh which is well below the cost of supplied energy (on average more than 10 cents per kWh).
Most of those savings have been delivered in buildings. This is corroborated by data provided by the De-risking Energy Efficiency Platform, which is the largest pan-EU open-source database containing detailed real technical and financial data of more than 5,000 buildings-related energy efficiency projects.
On average, the cost per kWh for building energy efficiency projects is 2.5 cents. International experience supports the European data.