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DDR3 memory differs from DDR2 primarily in its lower power consumption. Specifically, DDR3 operates at a voltage of 1.5 volts, which is lower than the typical 1.8 volts used by DDR2. This reduction in voltage leads to less power being used during operation, making DDR3 more energy efficient. This efficiency not only helps to extend battery life in portable devices but also reduces heat generation, which can be a significant factor in the performance and longevity of computer systems.

The options suggesting that DDR3 uses more power or has the same power consumption do not account for the efficiency improvements realized with the newer DDR3 technology. The mention of variable power settings is also not a defining characteristic between DDR3 and DDR2 in this context, as both types of memory can have advanced power management features, but the fundamental difference in power consumption is primarily due to the lower operating voltage of DDR3.