Energy dependency shows the extent to which an economy relies upon imports in order to meet its energy needs. The indicator is calculated as net imports divided by the sum of gross inland energy consumption plus bunkers. From a research and innovation perspective, a high energy dependency ratio may provide incentives for technological innovation that reduces energy demand or shifts supply towards domestically available resources (often renewable, given the maturity of European fossil fuel production). Such shifts can have a significant impact on the overall resource efficiency of the economy and can contribute to mitigating climate change.
Innovation can decrease dependency in a variety of ways. Innovation in fossil fuel production could theoretically increase security of supply while not serving resource efficiency or climate action. For example, innovations in extraction from tight gas and oil formations in the United States could potentially lead to new production of these resources in the EU, though this potential looks minor in the short term.
