European rural areas face higher levels of energy poverty – EU Science Hub

Energy Poverty in EU Rural Areas: Challenges and Opportunities Aligned with Sustainable Development Goals

Energy poverty, defined as the inability of households to access sufficient energy for essential services such as heating and cooling, significantly affects health and wellbeing, particularly during extreme weather conditions. This issue is pronounced in European Union (EU) rural areas due to lower average incomes and the prevalence of larger, older, and less energy-efficient homes compared to urban settings.

Understanding Energy Poverty Through a Sustainable Development Lens

Energy poverty is a multifaceted problem influenced by building inefficiencies, low disposable incomes, high energy costs, and socio-economic factors. The Joint Research Centre (JRC) has developed a comprehensive index to assess energy poverty across EU territories, integrating the following indicators:

1. Inability to maintain adequate home warmth,
2. Prevalence of unpaid utility bills,
3. Housing conditions including leaking roofs, damp walls, and structural rot,
4. At-risk-of-poverty rate, defined as households with disposable income below 60% of the national average.

Findings reveal that rural areas, especially in Bulgaria, Romania, and Greece, experience higher levels of energy poverty. This disparity aligns with Sustainable Development Goal (SDG) 1 (No Poverty) and SDG 7 (Affordable and Clean Energy), emphasizing the need for targeted interventions in these regions.

Challenges in Meeting Energy Needs in Rural Areas

Rural dwellings face greater challenges in meeting energy needs due to:

• Larger and less compact building structures,
• Increased heating requirements driven by colder climates (heating degree days),
• Higher poverty rates exacerbating energy access issues.

Countries such as Latvia, Estonia, Sweden, and Lithuania demonstrate these challenges most acutely, highlighting the intersection of SDG 10 (Reduced Inequalities) and SDG 13 (Climate Action).

Opportunities for Energy Efficiency and Renewable Energy in Rural Areas

Energy Efficiency Improvements

Rural areas lead in implementing energy efficiency renovations, with 29% of rural households undertaking improvements between 2018 and 2023, compared to 25% in towns and suburbs and 23% in cities. These measures include:

• Enhanced thermal insulation,
• Replacement of single-glazed windows with double or triple glazing,
• Installation of more efficient heating systems.

These efforts contribute directly to SDG 11 (Sustainable Cities and Communities) and SDG 12 (Responsible Consumption and Production) by promoting sustainable housing.

Renewable Energy Potential

Rural households are particularly well-positioned to adopt self-consumption renewable energy systems due to:

• Availability of large roof areas suitable for photovoltaic (PV) installations,
• High homeownership rates (78% in rural areas versus 55% in cities), facilitating investment in renewables.

Rooftop PV panels in rural areas could generate approximately 2,200 kWh per inhabitant annually, covering around 37% of average household energy consumption. This aligns with SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), supporting decarbonization and energy resilience.

Policy Context and Sustainable Development Goals Integration

Energy poverty is central to the EU’s agenda for a just and fair energy transition, directly supporting SDG 1 (No Poverty), SDG 7 (Affordable and Clean Energy), and SDG 13 (Climate Action). In 2023, 48 million Europeans (10.6% of the population) were unable to keep their homes adequately warm, with summer energy poverty emerging as a critical concern due to climate change and heatwaves.

Buildings account for 40% of the EU’s total energy consumption and 35% of energy-related greenhouse gas emissions (2021 data), underscoring the importance of energy efficiency improvements, particularly in rural areas with older and larger buildings.

The EU’s Long-Term Vision for Rural Areas emphasizes funding for building renovations, promotion of local renewable energy production, and reduction of energy poverty, supporting SDG 11 and SDG 7. The Rural Observatory plays a key role by providing detailed data and analyses to inform policy and local solutions.

Conclusion

The JRC report Exploring Rural Energy Poverty and Needs highlights the unique challenges and opportunities in EU rural areas. Addressing energy poverty through targeted renovations and renewable energy adoption contributes to multiple Sustainable Development Goals, fostering healthier, more resilient, and sustainable rural communities.

Related Resources

• JRC Report: Renewable Energy Production and Potential in EU Rural Areas
• Policy Brief: Renewable Energy in EU Rural Areas – Production, Potential, and Community Engagement
• Demography 2040: Cities Keep Growing, While Population Shrinks in Remote Rural Regions
• Thematic Analysis from the Rural Observatory

1. Sustainable Development Goals (SDGs) Addressed in the Article

• SDG 7: Affordable and Clean Energy – The article focuses on energy poverty, energy efficiency improvements, and renewable energy installations in rural areas.
• SDG 1: No Poverty – Energy poverty is linked to low income and at-risk-of-poverty households, highlighting the need to address poverty.
• SDG 11: Sustainable Cities and Communities – The article discusses improving housing conditions and energy resilience in rural communities.
• SDG 13: Climate Action – Emphasis on decarbonisation, reducing greenhouse gas emissions from buildings, and boosting renewable energy.
• SDG 3: Good Health and Well-being – Energy poverty impacts health and wellbeing, especially in extreme temperatures.

2. Specific Targets Under Those SDGs Identified in the Article

1. SDG 7 Targets:
   • 7.1 – Ensure universal access to affordable, reliable and modern energy services.
   • 7.2 – Increase substantially the share of renewable energy in the global energy mix.
   • 7.3 – Double the global rate of improvement in energy efficiency.
2. SDG 1 Targets:
   • 1.2 – Reduce at least by half the proportion of people living in poverty in all its dimensions.
3. SDG 11 Targets:
   • 11.1 – Ensure access for all to adequate, safe and affordable housing and basic services.
   • 11.b – Increase the number of cities and human settlements adopting integrated policies towards resilience to climate change.
4. SDG 13 Targets:
   • 13.2 – Integrate climate change measures into national policies, strategies and planning.
5. SDG 3 Targets:
   • 3.9 – Reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.

3. Indicators Mentioned or Implied in the Article to Measure Progress

• Energy Poverty Indicators:
  • Share of household expenditure on energy.
  • Inability to keep a home warm enough.
  • Rate of people behind on paying utility bills.
  • Share of households with poor housing conditions (leaking roofs, damp walls, rot in window frames).
  • At-risk-of-poverty rate (households with disposable income below 60% of country average).
• Energy Efficiency and Renewable Energy Indicators:
  • Percentage of households carrying out energy efficiency renovations (thermal insulation, window upgrades, heating systems).
  • Installed rooftop photovoltaic capacity per inhabitant (kWh produced per inhabitant).
  • Share of rural homes owned by occupants (ownership rate).
• Health and Well-being Indicators:
  • Number/percentage of people unable to keep homes adequately warm or cool.
• Environmental Indicators:
  • Energy use in buildings as a share of total energy consumption and greenhouse gas emissions.

4. Table: SDGs, Targets and Indicators

Source: joint-research-centre.ec.europa.eu