Housing affordability in Europe cannot be addressed in isolation from energy costs. For citizens, both are part of a single reality: the monthly housing and energy bills. As highlighted by FEDARENE President Julije Domac at the European Parliament’s public hearing on “Housing Affordability in Times of High Energy Costs“, “we cannot build affordable housing on expensive energy.”
Today, much of the policy focus remains on new housing and flagship initiatives such as the New European Bauhaus. While important, these efforts need to be complemented by stronger attention to existing buildings and the energy performance of homes. Without tackling energy demand and costs, affordability gains will remain limited.
This is where energy agencies play a key role.
Delivering solutions on the ground
Energy agencies act as practical enablers of the transition. They connect European ambition with local implementation, supporting citizens, municipalities and regions in turning strategies into results.
Their work covers the full renovation journey: raising awareness, providing technical advice, facilitating access to financing and supporting project delivery. Through one-stop shops, local energy planning and citizen engagement, they offer trusted guidance that helps households navigate complex decisions.
This local presence is essential. Funding, regulation, and citizens’ motivation alone do not guarantee uptake. People need clear pathways and reliable partners to facilitate their renovation journey, as Julije highlighted in his intervention.
Renovation as an affordability tool
Improving Europe’s building stock remains one of the most effective ways to reduce costs for households. Renovation lowers energy demand, stabilises bills and improves living conditions. It also strengthens energy security by reducing dependence on external suppliers.
Energy agencies have long experience in scaling up renovation through integrated approaches that combine financial, technical and social support. Their work ensures that solutions are adapted to local contexts and reach those who need them most. This is clearly demonstrated by agencies such as REGEA, the North-West Croatia Regional Energy and Climate Agency, which has spent years delivering practical solutions that link climate action with affordability at the regional level.
Positioning renovation as a core affordability measure would bring immediate and lasting benefits, echoing the call to treat renovation as Europe’s primary affordability policy.
Empowering citizens
Beyond reducing costs, the transition offers an opportunity to involve citizens more actively. Energy communities, self-consumption and local renewable projects allow households to participate directly in the energy system.
Energy agencies facilitate this powershift from centralised energy models to decentralised ones by supporting collective initiatives and helping citizens become active contributors rather than passive consumers. This strengthens both social cohesion, social acceptance of renewable energy, and ordinary citizens’ agency .
Building on existing frameworks
Europe already has a strong foundation, from local climate plans to energy poverty tools and citizen engagement models developed through initiatives like the Covenant of Mayors and implemented by networks of energy agencies. The priority now is to align initiatives such as Social Climate Plans, housing strategies and local energy planning, ensuring they reinforce each other.
Avoiding fragmentation will accelerate impact.
A local success story
Ultimately, Europe’s transition is delivered where people live. Affordable housing, lower energy bills and energy security are closely linked and must be addressed together.
FEDARENE and its members, alongside partners such as REGEA and the Covenant of Mayors community, are actively working across Europe to make this happen. As implementers and facilitators, energy agencies help ensure that policies translate into tangible improvements for citizens.
Because Europe’s success is not measured in strategies, but in homes and communities where affordability becomes a reality.
