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Energy Efficiency Directive

Intro

The Energy Efficiency Directive (EED) is a crucial component of the European Union’s strategy to improve energy efficiency and reduce overall energy consumption.It establishes ‘energy efficiency first’ as a fundamental principle of EU energy policy. In practical terms, this means that energy efficiency must be considered by EU countries in all relevant policy and major investment decisions taken in the energy and non-energy sectors.

The Directive on Energy Efficiency was first adopted in 2012, established a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. It was substantially revised in 2018 setting a binding energy efficiency target for a reduction in final energy consumption of at least 32.5% by 2030.

The provisions of the Directive are not directly applicable but must be transposed into national legislation to become effective. The Member States have until October 2025 to complete the transposition process, though specific articles have earlier transposition deadlines.

Timeline

Highlights

Solar thermal accounted for energy savings

The heat produced by solar thermal technologies can be excluded from the end-use energy consumption. This provision confirms the relevance of solar thermal, not only as recognized solution for energy generation but also as energy efficiency measure.

Energy efficiency targets

The directive sets binding targets for EU countries to collectively ensure an additional 11.7% reduction in energy consumption by 2030, compared to the projections of the EU reference scenario 2020. As a result, overall EU energy consumption by 2030 should not exceed 992.5 million tonnes of oil equivalent (Mtoe) for primary energy and 763 Mtoe for final energy. Before this 2023 revision, the targets were 1 273 Mtoe for primary energy and 956 Mtoe for final energy in 2030.

Exemplary role for public authorities

The directive includes an annual energy consumption reduction target of 1.9% for the public sector, and a 3% building renovation obligation extended to all levels of public administration. It also includes a requirement for the Renovation of Public Buildings, which sets (in general) that Member States shall ensure that at least 3% of the floorspace of buildings owned by public bodies shall be renovated each year to at least nearly zero-energy buildings (NZEB).

 Improved data and planning for H&C

Member States must conduct a comprehensive assessment of the potential for the application of high-efficiency cogeneration and efficient district heating and cooling, considering the overall potential for energy efficiency improvements in the national energy system. Member States must also ensure that national or regional heating and cooling plans are in place. EU countries will also have to promote local heating and cooling plans in large municipalities having populations above 45 000 (Art. 25.6).

Minimum requirements for Efficient District Heating networks

The text sets that an efficient district heating and cooling system) shall, until 2050, progress towards using only renewable energy, only waste heat, or only a combination of renewable energy and waste heat. The article sets milestones, starting in 2027 until 2045 with increasing thresholds for the proportion of RES and/or waste heat.

Consumer Information and empowerement

The directive, in its article 22, also emphasises the creation of one-stop shops, technical and financial advice and consumer protection via out-of-court mechanisms for the settlement of disputes.

Relevant Documentation

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