Nearly 48 million Europeans are struggling to heat their homes, and rural households are at the forefront of the crisis, according to a new report from the European Commission’s Joint Research Centre (JRC)
The study emphasises how rural areas across the EU face higher levels of energy poverty, driven by a mix of socio-economic and infrastructural challenges, but also have strong potential for sustainable, long-term solutions.
Rural households hit hardest by energy poverty.
Energy poverty, defined as the inability of households to afford the energy required for essential services such as heating and cooling, has significant implications for health and well-being, particularly during prolonged winters or increasingly frequent summer heatwaves. The JRC report, “Exploring Rural Energy Poverty and Needs,” provides a comprehensive look at how the issue unfolds differently across European regions.
Rural areas are particularly vulnerable due to lower-than-average incomes, combined with a housing stock that is often older, larger, and less energy-efficient than homes in urban areas. On average, rural households spend about 7% of their income on energy.
However, the report reveals that rural communities are leading the way in energy efficiency upgrades. Between 2018 and 2023, 29% of rural residents undertook renovations to improve energy performance, compared to 23% in cities. These upgrades included better insulation, new windows, and more efficient heating systems.
Rural regions are also particularly well-suited for renewable energy installations, especially rooftop solar panels. The combination of larger roof space and a higher rate of homeownership— 78% in rural areas compared to 55% in cities —makes them ideal candidates for self-consumption solar energy systems. According to the JRC, rural rooftop solar could generate approximately 2,200 kWh per person annually, accounting for over a third of the average household’s energy needs.
Eastern and Southern Europe were most affected.
Despite these opportunities, the energy challenge is incredibly high in parts of Eastern and Southern Europe. The report identifies Bulgaria, Romania, and Greece as having the highest rural energy poverty rates, with countries like Portugal, Cyprus, Croatia, and Lithuania also facing significant challenges. In Northern nations such as Latvia, Estonia, and Sweden, the combination of cold climates and ageing buildings intensifies the need for improved insulation and heating.
A new tool to measure the problem
To better understand these patterns, JRC researchers developed a new energy poverty index, combining energy expenditure with four key indicators: inability to keep homes warm, arrears on utility bills, poor housing conditions, and income levels below 60% of the national average.
The EU has made tackling energy poverty a core goal of its just energy transition strategy. Energy use in buildings accounts for 40% of the EU’s total energy consumption and 35% of greenhouse gas emissions.
Improving building efficiency and increasing the use of renewable energy are crucial for achieving both climate goals and social equity.
The JRC’s findings are contributing to the EU’s Rural Observatory initiative, which gathers data and insights to support targeted, place-based policies. “Addressing energy poverty in rural areas is not just a social priority,” the report states. “It’s a major opportunity to boost energy resilience and accelerate decarbonisation across Europe.”
As the EU pushes for climate neutrality, the rural energy transition could become a cornerstone of a greener Europe.
