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Power electronics is a key technology for the efficient conversion, control, and conditioning of electric energy from the source to the load. In this paper, the potential of power electronics for energy savings in four major application fields, buildings and lighting, power supplies, smart electricity grid, and industrial drives, is investigated. It is shown that by wider adoption of power electronics in these areas, the current European Union electricity consumption could be reduced by 25%. The technology challenges for exploiting this potential for all the four areas are identified in the paper.