Intelligent Energy Europe (IEE) is a programme for the promotion of energy efficiency and use of renewable energy sources. The programme's aim is to contribute towards secure, sustainable energy for Europe whilst enhancing European competitiveness. There are many untapped opportunities to save energy and encourage the use of renewable energy sources in Europe, but market conditions do not always help. The objective of the programme is to create the policy and market conditions needed for improved energy efficiency and use of renewable energy.

The programme focuses on three main areas:

• Fostering energy efficiency and the rational use of energy resources. Actions include the improvement of energy efficiency and the rational use of energy, in particular in construction and industry;
• Promoting new and renewable energy sources and supporting energy diversification. Actions cover the promotion of new and renewable energy sources for the centralised and decentralised production of electricity, heat and cooling, thus supporting the diversification of energy sources; and
• Promoting energy efficiency and the use of new and renewable energy sources in transport. Actions support initiatives relating to all energy aspects of transport and the diversification of fuels. The programme also includes the promotion of renewable fuels and energy efficiency in transport.

IEE provides the elements necessary for the improvement of sustainability. Its purpose is to support the legislative measures needed to attain the objective of sustainability and to develop the means and instruments to follow up, monitor and evaluate the impact of these legislative measures.

The programme aims at boosting investment across the EU in new and best performing technologies in the fields of energy efficiency, renewable energy and energy diversification. This includes the transport sector, focusing on the need to bridge the gap between successful demonstrations of innovative technologies and their effective and broad market uptake, in order to attain leverage of public and private sector investment. The key here is to promote new technologies to bring down costs and increase market experience. This is an important contribution towards the reduction of the financial risks and other perceived threats and barriers that hinder this type of investment.

The programme supports the removal of non-technological barriers to efficient and intelligent patterns of energy production and consumption by promoting institutional capacity building at both local and regional level. The key here is to raise awareness through the education system, to encourage exchanges of experience and know-how among the main players concerned and to stimulate the spread of best practices and best available technologies.

An annual work programme is compulsory for those who intend to participate in IEE. The work programme must include specific details such as funding priorities, budgets, funding types and conditions, procedures and plans. The calls for proposals are then assessed and selected by the Intelligent Energy Executive Agency. One of the general criteria for applying for funding is that the project has to have a European added value and does not just represent singular actions on a national or local level. In addition, projects must involve at least three partners from different countries and last a maximum of three years.

IEE started its second phase in 2007. Altogether, EUR 730 million is available to fund projects promoting energy efficiency and renewable energy sources. This is a significant increase from previous years.