Europe’s biggest energy risk is not a lack of solutions but complacency, Schneider Electric has warned as it called for faster action on efficiency and electrification.
The energy technology company said Europe remains dangerously exposed to global fossil fuel markets with energy prices expected to rise 24% this year, the biggest spike since 2022.
Laurent Bataille, Executive Vice President, Europe Operations at Schneider Electric, said: “The call to action for policymakers to prioritize energy efficiency and electrification is as relevant today as it was four years ago. The solutions haven’t changed.
Yet in that time, Europe has lurched from one energy crisis to another – without making the progress it should have to shield itself from the price shocks and sky-high costs making its businesses, households and industry so vulnerable.”
He added: “Complacency is Europe’s biggest energy risk.”
Schneider said Europe’s energy costs are typically two to four times higher than other major regions, leaving households, public services and industry more vulnerable to market shocks.
The company warned the EU still imports almost 60% of its energy, costing €336.7bn (£282bn) in 2025.
It argues energy efficiency and electrification should no longer be treated as climate add-ons but as Europe’s only scalable domestic energy resources.
Schneider said accelerating both could unlock at least €250bn (£209bn) a year by 2040 by cutting demand, reducing fossil fuel reliance and strengthening competitiveness.
The company is calling for five major policy actions, starting with rapid deployment of energy efficiency measures that can cut demand within months.
It wants interest-free loans to expand building energy management systems, connected controls and real-time optimisation of heating, cooling, ventilation and lighting.
In industry, it is calling for targeted support for SMEs to scale energy management systems and low-cost efficiency measures that could deliver savings of up to 30% over time.
Schneider also urged the EU to move faster on existing buildings legislation, including the rollout of Building Automation and Control Systems.
It said that alone could deliver 450TWh of annual final energy savings, cut 64 million tonnes of CO2 and reduce bills by €36bn (£30bn).
The company also wants faster electrification through heat pumps, corporate EV fleets, lower taxes on electricity and smarter grids.
It said Europe must stop using temporary fossil fuel subsidies as a comfort blanket and start building a system that cuts exposure to volatile imported fuels.
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