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Energy Efficiency Directive (EED)

 

 

 

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency (Energy Efficiency Directive - EED) was published in the Official Journal of the European Union on 14 November 2012.

 

The deadline for the Directive's transposition into the EU Member States' national laws was 5 June 2014.

 

EED requires the EU Member States to set indicative national energy efficiency targets ensuring that the EU reaches its target of saving 20 % of primary and final energy consumption by 2020 compared to business-as-usual projections.

 

It also introduces a set of binding measures to help Member States achieve this target.

 

The main instruments of the Energy Efficiency Directive are energy efficiency obligation schemes (EEOS), requiring obligated parties determined by Member States – energy distributors and/or retail energy sales companies – to reduce the volume of energy sales to final customers by 1.5 % annually.

 

This has to go beyond the existing energy efficiency standards regulated by other EU legislation.

 

 

Energy efficiency obligation schemes

 

  

Energy sales in the transport sector can be excluded from the calculation.

 

Gradual phase-in is allowed, as are some exemptions (for instance, the calculation can exclude energy for industrial activities), provided that the exemptions do not add up to more than 25 % of required savings.

 

Member States can decide to achieve the same savings by alternative measures, such as CO2 taxes, financing schemes, fiscal incentives, training and education, energy efficiency standards, norms and labelling that goes beyond those mandated by EU law.

 

Ultimately, Member States are free to choose how they will achieve the savings; currently, according to the European Parliament 2017 data, there are 477 diferent measures in use.

 

 

Metering and billing information

 

 

The directive contains a number of provisions on metering and billing for electricity, natural gas, district heating and cooling, and domestic hot water.

 

It requires that individual meters for final customers’ consumption of electricity, natural gas, district heating, cooling, and domestic hot water be introduced whenever a new connection in a new building is made or when the meter is replaced, provided this is technically possible and cost-effective.

 

The deadline for introducing individual meters for heating and cooling in all multi-apartment/multi-purpose buildings was 31 December 2016 (unless technically impossible or not cost-efficient).

 

Alternatively, individual heat-cost allocators can be used, unless this would also not be cost-efficient.

 

The EED sets requirements for the billing information available to customers with smart and regular electricity and gas meters, and requires that this information be accessible free of charge.

 

 

Public procurement

 

 

The EED requires the EU Member States’ central governments to purchase only highly energy efficient products, services and buildings, and to encourage local and regional authorities to do the same.

 

Public bodies are required to do so, provided it is cost-effective and economically feasible.

 

 

Buildings

 

 

Central governments are required to lead by example in the feld of buildings and to renovate 3 % of the total foor area of buildings occupied or owned by central government each year from 2014 onwards.

 

The EU Member States can choose to achieve the same savings by alternative measures.

 

The EED requires the EU Member States to establish long-term strategies for mobilising investment in energy-efficient renovation of national public and private building stock (under the Winter Energy Package these provisions are intended to be moved to the revised Energy Performance of Buildings Directive).

 

 

Other measures

 

 

The Energy Efficiency Directive also requires the EU Member States:

 

- to introduce mandatory energy audits of companies, excluding small and medium-sized enterprises;


- to monitor the efficiency of new energy generation capacity;


- to assess and use the potential for high-efficiency cogeneration (combined heat and power, CHP) and efficient district heating and cooling;


- to ensure priority access and dispatch of CHP electricity (under the Winter Energy Package these provisions are intended to be moved to the new proposals on electricity market legislation);


- to encourage and promote demand response (under the Winter Energy Package these provisions are intended to be moved to the new proposals on electricity market legislation);


- to support a market for energy services; and


- to ensure training, accreditation and certifcation of people working in the new energy market.

 

 

EED’s state of transposition

 

 

Report of 23 November 2017 from the Commission to the European Parliament and the Council, 2017 assessment of the progress made by Member States towards the national energy efficiency targets for 2020 and towards the implementation of the Energy Efficiency Directive refers to the following facts as regards EED’s state of transposition:

 

- the EED is fully transposed in all Member States, although there are delays in implementing some of the measures or the measures are subject to checks to ensure their conformity;

 

- the European Commission closed all the infringement proceedings for missing or partial notification;

 

- under EED Article 7, the EU Member States have reported their savings for 2015 which across the EU amounted to 28.5 Mtoe in cumulative terms;

 

- this is 15% more overall than the estimated amount of savings for 2015, assuming a linear delivery of the savings requirements to be achieved by the end of 2020;

 

- Energy Efficiency Obligation Schemes have been introduced in 15 EU Member States and are responsible for the highest share of energy savings (35%);

 

- while the majority of the policy measures target the buildings sector, other end-use sectors (e.g. transport, industry) are also targeted.

 

 

Accompanying legislation

 

 

Implemented via dedicated obligation schemes and alternative measures, the EED is a key element of the EU energy efficiency framework, although not alone.

 

Complementary legislative pieces are directives that set efficiency standards for products and buildings:

 

- Ecodesign Directive (Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products),


- Energy Efficiency Labelling Directive (Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products), and


- Energy Performance of Buildings Directive (Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings).

 

 

2030 framework

 

 

The EU legal framework for energy efficiency needs to be adapted to a 2030 perspective due to existing shortcomings: 

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Energy savings obligation according to the Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency, 30.11.2016, COM(2016) 761 final 2016/0376 (COD)

 

 

numbering blue the 1.5% annual energy savings obligation is extended from 2020 to 2030 and possibly beyond


numbering blue the EU Member States can achieve the savings obligation by introducing energy savings obligation schemes, alternative measures or a combination of the two


numbering blue energy sales in transport can still be excluded from the calculation, but the revised directive allows the EU Member States also to exclude the energy installation of new renewable energy generation on or in buildings for own use


numbering blue all other exemptions are retained


numbering blue calculation of energy savings stipulated in the Annex V has been modifed to clarify which savings are eligible


numbering blue savings from renovation of existing buildings can now be claimed in full


numbering blue while previously Member States could choose to include social requirements in savings obligation schemes, including the one foreseeing that a share of energy savings obligation schemes be implemented in energy poor households or in social housing, now they have an obligation to include such requirements


numbering blue the EU Member States also need to take into account the efect of alternative policy measures on energy-poor households

 

- the absence in the EED of a defined level of energy efficiency ambition for 2030,

 

- the need to specify the nature of the level of energy efficiency ambition for 2030 (binding or indicative), 

 

- the fact that under the existing framework of Article 7 (energy savings obligations) and Articles 9-11 (metering and billing) a substantial amount of economically viable energy savings will not be taken up,

 

- the expiry of Article 7 after 2020, and

 

- the need to reflect technical progress in metering and billing to the benefit of energy consumers.

 

On 30 November 2016, the European Commission presented a proposal for a revised Energy Efficiency Directive (European Commission's Proposal of 30 November 2016 for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency (COM(2016) 761 final 2016/0376 (COD)), as part of the Winter Energy Package.

 

The said EED revision focused on those parts that needed to be brought into line with the 2030 energy and climate targets and those whose evaluation was mandated by the current directive.

 

In particular, the European Commission proposed a 30 % binding EU energy efficiency target for 2030, to be achieved by means of indicative national targets.

 

Although more demanding than the 27 % efficiency target approved by the European Council in 2014, it is less ambitious than the 40 % target called for by the European Parliament.

 

If the 30% target was finally adopted it would mean that in 2030 EU energy consumption would have to be no more than 1 321 Mtoe of primary energy and no more than 987 Mtoe of final energy.

 

The European Commission can propose additional measures, should its assessment of the Member States’ progress in implementing their plans show that the EU is not on track to achieve the 2030 target.

 

The revised directive proposed to extend beyond 2020 the application of the energy savings obligation scheme, which required utility companies to help their consumers use 1.5 % less energy each year.

 

The possibility to use both energy efficiency obligation schemes and alternative measures was retained.

 

The European Commission Proposal also aimed to make the rules on energy metering and billing clearer.

 

feather

Metering and billing information according to the Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency, 30.11.2016, COM(2016) 761 final 2016/0376 (COD)

 

✅ provisions on metering and billing have been amended to exclude electricity (which have been moved to the new electricity market legislation)

 

✅ new provisions refer mainly to district heating, cooling and domestic hot water

 

✅ as of 1 January 2020, all newly installed district heating and cooling meters and domestic hot water meters, as well as cost allocators at individual radiators, have to be remotely readable

 

✅ old meters and allocators will have to add such capabilities or be replaced by 1 January 2027, unless a Member State shows this would not be cost-efficient

 

✅ while previously the EU Member States were free (but not obliged) to introduce transparent rules on the allocation of heating and cooling costs in multi-apartment and multi-purpose buildings, now such rules are a requirement

 

✅ the wording of the provisions for billing and consumption information has been changed, with a distinction now being made between ‘final consumers’ and ‘final users’

 

✅ the right to accurate information on actual consumption in the proposal refers to all ‘final users’, while previously it referred to the ‘final consumers’, potentially excluding sub-metered consumers

 

 

The modified framework envisioned, moreover:

 

- the extension of Article 7 to 2030; simplifying and updating this Article (e.g. on what savings can be counted and on-building renewable energy production);


- clarification and updating of the provisions of Articles 9-11, including consolidation of the provisions on electricity and gas with the internal energy market legislation to ensure coherence.

 

Provisional Agreement of 17 July 2018 of the European Parliament (Committee on Industry, Research and Energy) resulting from Interinstitutional Negotiations on the Proposal for a directive European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency (COM(2016)0761 – C8-0498/2016 – 2016/0376(COD)) sets:

 

- a headline EU target of at least 32.5 % efficiency improvements by 2030, a non-binding goal to be achieved through indicative national contributions reflecting final and/ or primary energy consumption (this is consistent with a maximum limit of 1 273 Mtoe of EU primary energy consumption or 956 Mtoe of EU final energy consumption by 2030, however, in case of substantial cost reductions or to meet international commitments, the headline target may be revised upwards (but not lowered), on the basis of a new European Commission proposal);

 

- energy savings obligations of 0.8 % per annum between 2021 and 2030, to be calculated in terms of final energy consumption.

 

Obligations may include policy measures enacted before 2020 that impact on energy savings in the 2021-2030 period.

 

More sectors would be covered by energy-savings obligations than under the existing EED, although the EU Member States could still choose to exclude transport, certain industrial activities and some energy use in buildings.

 

Efficiency measures that address energy poverty would be included in the integrated national energy and climate plans (under the Governance of the Energy Union Regulation).

 

The provisional agreement introduces a new remote reading requirement that would apply to all new meters installed after the date of transposition of the revised EED, as well as all other meters by 1 January 2027 (unless Member States can show this is not cost-effective).

 

The revised EED is to be transposed into national legislation within 18 months of its entry into force, ensuring the new provisions take effect before 2021.

 

The Commission is required to evaluate the functioning of the revised EED by 2023, and could accompany this review with a legislative proposal that raises the headline target. 

 

 

 


  

 

chronicle

 EED regulatory chronicle 

  

 

 

13 November 2018

 

Commission welcomes European Parliament adoption of key files of the Clean Energy for All Europeans package

 

17 July 2018

 

European Parliament, Committee on Industry, Research and Energy, Provisional Agreement Resulting from Interinstitutional Negotiations on the Proposal for a directive European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency (COM(2016)0761 – C8-0498/2016 – 2016/0376(COD))

 

19 June 2018

 

Political agreement on new rules for improving energy efficiency in Europe was reached between negotiators from the Commission, the European Parliament, and the Council 

 

20 December 2017

 

European Parliament, Committee on Industry, Research and Energy, Report on the proposal for a directive of the European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency COM(2016)0761 – C8-0498/2016 – 2016/0376(COD))

 

23 November 2017

 

Report from the Commission to the European Parliament and the Council, 2017 assessment of the progress made by Member States towards the national energy efficiency targets for 2020 and towards the implementation of the Energy Efficiency Directive as required by Article 24(3) of the Energy Efficiency Directive 2012/27/EU, COM(2017) 687 final

 

30 November 2016

 

Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency, , COM(2016) 761 final 2016/0376 (COD) and Annex

 

Commission Staff Working Document, Executive Summary of the Impact Assessment Accompanying the document Proposal for a Directive of the European Parliament and of the Council amending Directive 2012/27/EU on Energy Efficiency {COM(2016) 761 final} {SWD(2016) 405 final}, SWD(2016) 406 final

 

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

 

 

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, 14.11.2012, p. 1 as amended 

 

Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products


Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products


Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings

 

Briefing, EU legislation in progress, Revised Energy Efficiency Directive

 

Zygierewicz, A., Implementation of the Energy Efficiency Directive (2012/27/EU): Energy Effciency Obligation Schemes, EPRS, European Parliament, April 2016

 

 

 

 

 

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    Links    

 

 

 

 

 

Legislative observatory file (OEIL) on the revision of the Energy Efficiency Directive, Procedure 2016/0376(COD)

 

 

 

 

 

 

 

 

 

 

 

Last Updated on Friday, 16 November 2018 15:19
 

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