Changes

An unfortunate drawback of renewable energy sources is the uneven supply and demand of electricity. The demand for electricity fluctuates throughout the day<ref>https://www.eia.gov/todayinenergy/detail.php?id=830</ref>, as well as throughout the year, and with renewable sources being used, so does supply - with solar panels, for example producing energy only during the day, and a much greater volume during the warmer months). Thus, it is important to balance the grid and match supply to demand, meaning that either renewable power stations must limit their production during times of low demand, or that energy is not consumed and eventually wasted.

Another major issue faced by the Union, in terms of energy production is the lack of market liberalisation in terms of the electricity production sector in many Member States. For example, in small States such as Cyprus or Malta, the largest power generator held 100% of the market share for electricity in 2014, according to Eurostat<ref>http://ec.europa.eu/eurostat/statistics-explained/index.php/Electricity_production,_consumption_and_market_overview</ref>. This is an area of concern for the issue of energy efficiency, as it means that the production of electricity in the country is subject to limited or no investment in the free market, potentially hindering the sector’s growth.  Energy monopolies in Member States, have a lot to do with the public sector, as well. In many cases monopoly in the energy sector exists due to the fact that the biggest electricity production company in the country is state-owned, such is the case in France, for example, where Electricité de France (EDF) currently provides 90% of the country's net electricity<ref>http://www.economist.com/node/3485202</ref>, especially for residential consumption. The most common argument in favour of this is protection of consumers, as state-owned enterprises are less likely to hold consumers to ransom by cutting supply when the monthly fee is not payed, or raise prices unaccountably. There is also the issue of infrastructure development, an often very costly enterprise, which is not easily taken up by private firms, unless a private monopoly is guaranteed. For this reason, the state often builds energy infrastructure and subsequently also manages it.  However, market liberalisation is nevertheless, one of the key goals of the Commission when it comes to the energy market, as it would allow consumers to choose their providers freely, instead of being forced to abide by the standards of a single- or in any case, very few- companies.

In order to be able to match demand to supply in power , and ensure that countries are safeguarded and can guarantee energy to their citizens (even in the case of a spontaneous halt in the use of imported fossil fuels), it is tantamount for MS to co-operate with each other and invest in infrastructure which will allow energy to flow freely and efficiently throughout the EU. In this way, the vision of the Energy Union is achieved and the existence of ‘energy islands’ throughout the Union is addressed.

Smart grids are the latest technology in the energy sector. The current grid system present in most MS is considered outdated, as it allows only a one-way flow of electricity from production stations and storing facilities to the consumers. HoweverAs mentioned above in the uneven demand and supply challenge, conventional grids cannot respond to the unequal demand and supply of energy at different times of the day or the year. In contrast, the smart grid establishes a two-way communication line, involving the consumers, production facilities and storage facilities, in order to balance the demand and supply of energy more effectively. As part of smart grids, the energy demands of the country are measured and recorded, and energy is better distributed to consumers. Specifically, digital meters allow consumers to have in-depth information on their energy consumption. This could help consumers, themselves, monitor their consumption and limit it where possible, to curb costs as well as harmful effects on the environment. Other gadgets available as part of Smart grids include*PMUs, which allow processors to assess grid stability, thus preventing malfunctions *automated feeder switches, which can reroute energy traffic around any possible problems in the system*and batteries, able to store excess energy produced during hours of low demand and re-supply it to the system when demand rises.<ref>https://energy.gov/oe/services/technology-development/smart-grid</ref> ==== Increasing Energy Efficiency in Households ====In recent years, the EU has placed increasing importance in energy efficiency in households. As part of this ambition to cut down energy consumption by households, the EU endorses and provides incentives for the creation of energy efficient household appliances, meeting minimum energy efficiency targets, for example. Ecodesign regulations require that manufacturers ensure that their products consume the lowest amount of energy possible. The regulations, set at a European level, under [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:285:0010:0035:en:PDF Directive 2009/125/EC of the European Parliament and of the Council], ensure that manufacturers of products mentioned in the Directive, such as (but not limited to): air heating and cooling tools, computers, televisions, domestic cooking appliances, etc. abide by the energy efficiency regulations. The Directive monitors the implementation of this Directive, as well as managing any bilateral agreements with manufacturers of other types of goods.

Specifically, digital meters allow consumers to have Another way in which the EU encourages energy efficiency in-depth information on their Household products sold within the Union is through the introduction of harmonised energy consumptionlabels, PMUs allow processors to assess grid stabilityhelp consumers determine which products are most energy efficient, thus preventing malfunctionsand in effect, automated feeder switches can reroute energy traffic around any possible problems most cost efficient for them. The scale proposed by the Commission in the system2015, whilst batteries are able goes from A to store excess G, with the most energy produced during hours -efficient products being labelled A. Indeed, since the introduction of low demand labels in 1995, energy efficient products have attracted more and re-supply it more customers, effectively urging manufacturers to create increasingly energy efficient products. The result of these labels, combined with the system when demand rises.<ref>https://Energy Efficiency Directive is predicted to save around 175 million tonnes of oil, as well as 465 euros per year in each household's energycosts.gov/oe/services/technology-development/smart-grid</ref>