Energy security

Energy efficiency can help mitigate energy security risks by reducing the reliance on fossil fuel imports, improving grid reliability, and acting as a buffer to supply shocks.

• Efficiency gains from the last two decades avoided the need for 20% more fossil fuel imports in IEA countries.
• Energy efficiency and demand response can support grid reliability by reducing peak demand. For instance, more efficient air conditioners in India could lower the impact of heatwaves on peak demand by 20% by 2030 and help reduce the risk of blackouts.
  

Energy efficiency policies in different sectors have been effective in reducing fossil fuel imports. In the European Union, the strongest reduction was in gas imports, driven by strong energy efficiency improvements in the industrial sector. Meanwhile, in Japan the strongest reductions were in oil imports, due to some of the most stringent fuel economy standards both for passenger and commercial vehicles. 

Energy efficiency and demand response policies can also contribute to electricity security by reducing the risk of outages resulting from peak demand.

Different programmes have demonstrated success in reducing peak electricity demand and preventing outages. Studies in the United Kingdom and the United States show that real-time feedback and pre-event communications lead to reductions in consumption and peak demand of about 3%.

This is especially relevant in regions where grid reliability is a significant concern. For instance, in India, increased electrification, combined with a rapid adoption of appliances such as air conditioners, is putting additional strains on power grids and leading to new peak demand records and resiliency challenges. In 2019, 1°C in outdoor temperature increase was associated with a 5 GW increase in peak electricity demand; with rising air‑conditioner ownership and increasing temperatures, this value rose to 7 GW in 2024 and could further rise to 12 GW in 2030 without further efficiency action. If India were to experience similar heatwaves as in recent years – with temperature anomalies of over 4°C – the additional peak load would amount to 47 GW. However, if all new air conditioners in India were highly efficient (e.g. through increased minimum energy performance standards), peak load during a heatwave could be reduced by almost 9 GW or about 20%, significantly decreasing the risk of blackouts or brownouts.

• IEA (2025), Energy Security.