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Addressing energy poverty in rural Europe: Insights and opportunities from a new JRC Report

A new report highlights energy poverty in rural areas—where homes are older, less efficient, and incomes lower. Yet these communities are also making strides in renovations and renewables. What does this mean for Europe’s small municipalities?

  • News article
  • 30 July 2025
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A new report from the Joint Research Centre (JRC) provides a detailed assessment of the challenges and opportunities related to housing energy needs across the EU, highlighting the specific situation of rural areas. For many of the Covenant of Mayors' signatories – small municipalities located in rural regions – these findings are especially relevant.

Energy poverty risks in rural areas

The report confirms that rural households in Europe face a higher risk of energy poverty. Contributing factors include generally lower average incomes, combined with housing stock that tends to be older, larger, and less energy efficient compared to that in urban and suburban areas. These conditions increase the burden of heating and cooling homes, especially during periods of extreme temperatures.

Energy renovation efforts by rural municipalities  

At the same time, the report points to encouraging trends. Rural areas are making notable progress in energy efficiency renovations: 29% of households have taken steps to improve energy performance between 2018 and 2023. This includes measures such as improving thermal insulation, upgrading heating systems, and installing double- or triple-glazed windows.

Energy self-consumption in rural communities

Moreover, rural communities are well positioned to benefit from self-consumption renewable energy systems. With more available land, rooftop space, and higher home ownership rates, these areas have strong potential for installing rooftop photovoltaics, which could cover up to 37% of an average household's energy consumption annually.

Resources for Covenant signatories in rural areas

To support informed, place-based policymaking, the JRC sets out a method that integrates data on building efficiency, household income and energy expenditure, and socio-economic indicators. This approach allows for a more accurate understanding of how energy poverty manifests across different territories.

For Covenant signatories working toward a just energy transition in remote areas, this data offers a valuable starting point. Tailored, local solutions, especially those that combine building renovations with renewable energy deployment, can help address both social and climate priorities in rural areas.

Explore the latest Rural Pact resources on energy to learn more about how municipalities can respond to these challenges and unlock new opportunities for their communities.

Details

Publication date
30 July 2025