The Recovery and Resilience Facility (RRF) is delivering concrete results across the EU, supporting large-scale reforms and investments, and contributing substantially to Europe’s green transition.
Around 40% of the EU's total final energy consumption is attributable to the building sector (including indirect emissions of electricity use in buildings). Roughly three-quarters of buildings in Europe have poor energy performance [1].
Buildings are crucial for energy security. Energy efficiency has been identified as one of the most effective and sustainable ways for the EU to discontinue its reliance on foreign fossil fuel imports.
The reforms and investments in energy efficiency in Member States’ Recovery and Resilience Plans (RRPs) are essential to meet our climate objectives and strategic autonomy. Under their national plans, Member States are renovating the equivalent of more than 420 million m2 (or 4.7 million dwellings) and 76 million m2 of non-residential space – €66 billion overall [2]. These renovations will help to reduce overall energy consumption while also improving present and future energy affordability and security.
For the residential sector alone, they are projected to lead to annual energy savings of 18.2 terawatt hours (TWh), equivalent to a yearly primary energy consumption of more than 1.2 million households, and savings of almost 4 million tonnes of CO2-equivalents per year. Savings for households, which will be dependent on the energy mix of the Member States, are modelled to be up to €3.8 billion per year and up to €881 for each household on average.
Complementing investments, reforms in different Member States unlock private investments, bring renovation closer to citizens and enable energy saving, which will ensure that the benefits of the RRF extend well beyond 2026.
Investments in Energy Efficiency
A significant share of the Recovery and Resilience Facility is dedicated to energy efficiency improvements of the private and public building stock.
Almost €103 billion in estimated costs are allocated to energy efficiency measures.
Discover more about how the RRF is transforming Europe in the dedicated factsheets on sustainable mobility and clean power.
Member States are supporting renovation schemes, targeting insulation, heating systems, and digital energy controls in both public and private buildings. The following section covers energy efficiency interventions in the existing residential building stock. In addition to the renovation of existing buildings, the RRF contributes around €13.4 billion in construction of highly efficient buildings; given the different impact on energy savings, these measures are out of the scope of this note.
Key results for the residential sector
Thanks to the RRF, millions of dwellings and square meters of residential buildings will undergo energy efficiency interventions. 20 Member States have included in their plans RRF-financed measures to increase the energy efficiency of residential dwellings, retrofitting almost 420 million m2 [3] or almost 4.7 million dwellings [4]. This is enabled by more than €45 billion in estimated costs for the energy efficiency investments in private, residential buildings [5].
| Figure 2: Projected number of square meters to undergo energy efficiency interventions under the RRPs [m2] | |
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Smart technologies and heating systems
 | The investments in retrofits and energy efficiency interventions are complemented by efforts to replace fossil fuel heating sources with sustainable alternatives. The RRPs will replace more than 3 million heating and cooling systems with sustainable alternatives. |
| In addition, more than 14 million smart meters have been included in the RRPs, enabling real-time monitoring of energy consumption. This will allow consumers to adjust their consumption in relation to lower electricity prices and will significantly contribute to enhancing the security of the electricity system as well as make the energy transition more cost-efficient. This also enables more grid flexibility, allowing for the integration of additional variable generation from renewables - For more information on how the RRF is supporting deployment of renewable energy, see the Clean Power Factsheet. |
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Energy Savings Impact
Energy efficiency interventions translate into decreases in energy consumption, which benefits not only households, but also helps to phase out fossil fuels, reduces import dependencies from third countries and thereby supports the REPowerEU Plan’s goal of decreasing energy dependencies.
The energy efficiency interventions in residential dwellings and buildings are projected to lead to a yearly reduction in primary energy consumption of 18.2 TWh [6], equivalent to the entire annual primary energy consumption of almost 1.2 million households [7].
| Figure 3: Projected residential primary energy savings under the RRPs [MWh/year] | |
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Reducing emissions from energy consumption
| Based on the emissions intensity of residential energy consumption in the Member States, the modelling of the energy efficiency retrofits leads to yearly greenhouse gas emissions (GHG) savings of almost 4 million tonnes of CO2-equivalents a year. These measures therefore not only contribute to national energy efficiency targets but also ensure progress towards the EU’s objectives of at least 55% GHG emission reductions by 2030 and climate neutrality by 2050. |
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Cost savings for households
Improving the energy performance of homes is both a climate imperative and a social opportunity. Through targeted investments in energy efficiency renovations, the RRF is helping households, including those living in energy poverty or more vulnerable circumstances, significantly reduce their energy consumption - and with it, their energy bills.
Annual energy savings resulting from RRF supported energy efficiency interventions for residential buildings are projected to reach 18.2 TWh. While energy savings translate into greater financial security and resilience, cost savings depend on households’ energy sources, in particular related to heating. We present below stylised examples, which assume savings relate to electricity and/or gas.
Assuming RRF supported energy renovations would only decrease electricity consumption and based on Member State specific average electricity prices for a typical household in the second half of 2022 [8], energy efficiency retrofit efforts would lead to electricity cost savings between €297 and €2 011 per year. On average, households would save €881 per year [9]. At the RRF level, 18.2 TWh of primary energy savings, when applied to electricity only given the energy mix of Member States, would result in 15.1 TWh of electricity savings, resulting in €3.8 billion cost savings per year [10]. The rest will come from savings of other energy sources [11].
Key Results - Non-residential sector
The concerted effort to enhance energy efficiency is not only a step towards sustainability but also profitability as a result of the energy savings. Thanks to the RRF, thousands of public buildings, offices, schools and hospitals are undergoing energy efficiency renovations. This is enabled by almost €21 billion in RRF allocation for the energy efficiency investments in public infrastructure and more than €24 billion in RRF allocation for energy efficiency investments in SMEs and large enterprises [12].
18 RRPs include investments to increase the energy efficiency of non-residential buildings. Under the RRPs, Member States are retrofitting the equivalent of more than 76 000 non-residential buildings, such as schools, hospitals, public offices or commercial buildings or approximately 76 million m2 of non-residential space [13].
| Figure 4: Projected non-residential area to undergo energy efficiency interventions under the RRPs [m2][14] | |
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Energy Savings Impact
The energy efficiency interventions in non-residential buildings is modelled to lead to a yearly reduction in primary energy consumption of 2.4 TWh, equivalent to the entire annual consumption of approximately 170 000 households[15].
| Figure 5: Projected non-residential primary energy savings under the RRPs [MWh/year] | |
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Reducing emissions from energy consumption
| Based on the emissions intensity of residential energy consumption in the Member States, the modelling of the energy efficiency retrofits leads to yearly savings of almost 464 000 tonnes of CO2-equivalents a year. |
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Cost savings for the non-residential sector
Improving the energy performance of non-residential buildings is both a climate necessity and an economic opportunity. Through targeted investments in the retrofitting of schools, hospitals, and commercial buildings, Member States are supporting businesses and public services in significantly reducing their energy consumption - and with it, their operational costs. These upgrades, which include better insulation, efficient heating and cooling systems, and smart energy management technologies, enhance comfort, indoor air quality, and working conditions, while reducing dependence on fossil fuels.
For many businesses and public entities, interventions to improve the energy efficiency of the building stock can lead not only to lower energy costs but also to enhanced resilience against energy price shocks. Annual energy savings resulting from RRF supported energy efficiency interventions for non-residential buildings are projected to reach 2.4 TWh.[16] While energy savings translate into greater financial security and resilience, cost savings depend on non-residential customers’ energy sources, in particular related to heating.
Reforms and Long-Term Impact: Laying the Foundation for Lasting Change
The full power of the Recovery and Resilience Facility lies not only in the investments it funds, but in the reforms it enables. Investments go hand-in-hand with reforms. The interplay between reforms and investments is central to the RRF’s novel framework: reforms create the enabling framework for investments to deliver measurable and lasting improvements in energy efficiency, while investments in turn reinforce the reforms by generating demand, capacity, and demonstration effects. Across Member States, the RRF has accelerated changes in three main areas: long-term renovation strategy and introduction of binding requirements for energy efficiency, regulatory and administrative frameworks such as reforms to simplify procedures for energy efficiency renovations, the creation of one-stop-shops to provide assistance and training to support citizens to pursue energy efficiency renovations.
One fifth (68) of the green reforms concern modernisation of buildings, and predominantly improving the energy efficiency of these, and these reforms are unlocking private investment, reducing regulatory barriers, and ensuring the benefits of the RRF extend well beyond 2026. Together, they form a lasting foundation for a clean, secure, and competitive European energy system. To gain a comprehensive view of the RRF’s impact across major green sectors, see also our factsheets on sustainable mobility and clean power.
The RRF's contribution to improving the energy performance of EU buildings and increasing overall energy efficiency extends beyond providing an unparalleled investment stimulus. The RRF brings together reforms and investments to accelerate the green transition and enhance the energy performance of Europe’s building stock. Reforms address long-standing regulatory and administrative barriers - for instance by simplifying permitting, strengthening building codes, and improving access to financing - while investments support large-scale renovation programmes and the deployment of energy-saving technologies. The examples below illustrate how structural reforms in the RRPs contribute to creating impacts beyond 2026 and the commitments outlined in the RRPs.
Italy's streamlining procedures and energy efficiency interventions boostsItaly's streamlining procedures and energy efficiency interventions boosts 
Energy efficiency renovations closer to citizensEnergy efficiency renovations closer to citizens 
Spanish urban agenda and housingSpanish urban agenda and housing
Footnotes
Note on methodology: This factsheet presents projections of results and impacts of RRF investments, including contributions to broader policy goals. The analysis is based on a structured review of RRP milestones and targets, using standardised conversion factors and assumptions to convert the physical outputs into meaningful impact indicators. These estimates are based on quantifiable commitments included in the RRPs. Additional RRPs may also have relevant investments contributing to the impacts, but where these cannot be quantified, they are not reflected here. This means that the estimates are likely underreported. Importantly, all figures presented are estimations and thus cannot be taken to reflect actual impact. The data cutoff is March 2025.
- [1] Eurostat energy balances and EEA Greenhouse Gas Inventory, 2023 ⬆
- [2] Formally, 4 million dwellings and 54 million square meters (m2) of residential area – if aggregated under a single metric, 420 millions m2 or 4.7 millions dwellings ⬆
- [3] Note: This estimate includes the committed number of dwellings to undergo energy efficiency interventions, recalculated into the square meters of residential area to undergo energy efficiency interventions, using the average size of dwellings in the Member State. ⬆
- [4] Note: This estimate includes the committed m2 of residential area to undergo energy efficiency interventions, recalculated into the number of dwellings to undergo energy efficiency interventions, using the average size of dwellings in the Member State. ⬆
- [5] This figure has been obtained by summing the estimated expenditure associated with measures tracked with intervention fields 025 and 025bis. These intervention fields have been assigned in accordance with the methodology for climate tracking included in Annex VI of the RRF Regulation. ⬆
- [6] Using the average primary energy consumption per dwelling of EU Member States from Odyssee-Mure (2022), limited to specific end-uses (space heating, water heating, air conditioning, electrical appliances and cooking), for the Member States concerned by energy efficiency renovations of residential buildings. Based on the Member State–specific average primary energy use per end-use, we derive the estimated total energy consumption prior to the energy efficiency interventions. Depending on the assumed level of retrofit-light or medium depth, in line with the Commission Recommendation on Building Renovation (EU) 2019/786 - this corresponds to an assumed 15% or 30% reduction in primary energy consumption for the included end-uses. Applying these reductions to the specific consumption patterns allows us to estimate the associated energy savings. These savings are then aggregated to obtain a total estimated primary energy saving. ⬆
- [7] Based on average specific consumption of households by end-use, Odyssee-Mure, 2022. ⬆
- [8] Defined for the purpose of this factsheet as medium-sized consumers with an annual consumption between 2 500 KWh and 5 000 KWh. The utilisation of 2022 data is to reflect the annual consumption data, which is also from 2022. Data from RRPs, Electricity consumption per dwelling | Electricity dwelling | ODYSSEE-MURE, and Product - Datasets - Eurostat ⬆
- [9] Note: assuming the 15 or 30% savings are solely related to electricity consumption. Energy savings applied only to electricity are taken as the minimum between 30% energy savings and average electricity consumption, so savings cannot exceed average consumption. ⬆
- [10] Different from the overall 18.2 TWh of overall energy savings since savings applied only to electricity cannot exceed households’ consumption. ⬆
- [11] For modelling purposes, savings are calculated using a stylised approach that considers only electricity as the relevant energy carriers. It should be noted, however, that actual household end-use energy consumption is supplied by a wider mix of fuels. According to Odyssee-Mure (2022), space heating in EU households is met by a diverse set of energy sources: approximately 36.5% natural gas, 6.08% electricity, 13.1% oil, 31.3% wood (i.e. biomass), 9.72% derived heat (e.g. district heating) and 3.34% coal. Stylised examples abstract from this broader fuel mix. Heating Energy Consumption by Energy Source | ODYSSEE-MURE ⬆
- [12] These figures have been obtained by summing the estimated expenditure associated with measures tracked with intervention fields 024, 024bis, 024ter, 026 and 026bis. These intervention fields have been assigned in accordance with the methodology for climate tracking included in Annex VI of the RRF Regulation. ⬆
- [13] Note: This estimate combines commitments expressed in number of buildings and in square metres (m²) of non-residential space. For consistency, figures have been recalculated into a single unit using the average size of non-residential buildings in the Member State. Formally, 27 000 buildings and 44 million square meters (m2) of non-residential area – if aggregated under a single metric, 76 million m2 or 76 000 buildings. ⬆
- [14] Note: This estimate includes the committed square meters of non-residential area to undergo energy efficiency interventions, recalculated into the number of buildings using the average building size of service sector buildings in the Member State. Using the average MS specific primary energy use per sqm of non-residential buildings, we can derive the total energy consumption prior to the energy efficiency interventions. Depending on the level of the retrofit (assumed to reflect either a light- or a medium-depth level renovation, as defined in Commission Recommendation on Building Renovation (EU) 2019/786), this is taken to reflect either a 15% or 30% reduction in primary energy consumption. ⬆
- [15] Considering average yearly primary energy consumption of residential buildings, per MS concerned by energy efficiency renovations of non-residential buildings. The implicit ratio energy consumption / number of households slightly differs from the ratio for household savings (18.2 TWh / 1.2 m households) due to differences in countries covered by residential / non-residential energy efficiency measures. ⬆
- [16] Derived from data from RRPs and from EU Building Stock Observatory (service buildings) ⬆