By Marta Koblanska. November 26, 2025, 12:30 Poland’s time, Photo: electricity, Pixabay

According to a recent IEA report, energy efficiency in industrial performance accounted for over 50 percent of resilience to price fluctuations in 2025, which are expected to rise.

These fluctuations/variability mainly result from gas price volatility, which has increased by 40 percent in the EU since 2022, as well as because of a greater share of generation from intermittent renewables. The latter one in particular requires special measures/approach in terms of power capacity reservation, which costs. This is why, although globally, industrial energy density/efficiency improved by about 1 percent in the recent 25 years (which is quite a large progress), the value of products we all buy increased by 20 percent considering a unit of used energy. Simplifying. We pay more for a smaller amount of energy that we use in our everyday lives.

What is the cost of the war in Ukraine?

According to the report, potential cost savings for economies that consume large volumes of electricity have increased by 80 percent since 2015. During the same period, volatility in spot prices throughout the day has increased by over 150 percent. Meanwhile, the share of electricity in final energy demand is projected to reach just under 22 percent by 2025. Growing consumption—driven by an increased dependence on electricity critical to the functioning of modern societies—will likely lead to further price increases for consumers. 

The International Energy Agency (IEA) notes that since 2000, efficiency improvements have reduced the need for fossil fuel imports by 20 percent among energy-importing countries. At the same time, there is an increased demand for flexibility in managing electricity consumption.

The market shift is not advantageous

According to some experts, Poland seems to be lagging with its stiff power market and legal competitiveness constraints that, on one hand, may be viewed as a security measure, while on the other hand, it may be considered as market congestion. One or another, in line with the IEA report, the value of flexibility has increased, with potential bill savings rising about 80 percent since 2015 in certain countries. But that required flexibility to system operators, utilities, consumers, and policy makers, i.e, introduction of hourly spot prices. Those can be significantly higher per unit of energy.

Looking beyond 2025, the potential of demand flexibility will likely increase – the IEA claims, adding that the most challenging target in the coming years is to meet the energy affordability issue.

Experts from the International Energy Agency (IEA) highlight that household energy expenditures are currently up to 20 percent higher than they were in 2019. Past efficiency measures have successfully reduced household energy bills, leading to decreases of up to 20 percent in advanced economies. These improvements can be attributed to gains made since the year 2000.

The survey issued on November 20, 2025, was conducted among respondents in 14 countries. A striking thing is that the perception is that energy efficiency is critical to maintain competitiveness. Twenty-one percent of companies expressed this, while thirty-one percent indicated a strong impact. According to IEA, energy costs can represent up to 35 percent of the value of total sales in food manufacturing, around 20 percent in textiles, and 25 percent in the non-metallic manufacturing sector.