Energy Efficiency

Energy efficiency

Directive 2012/27/EU on energy efficiency

Directive (EU) 2018/2002 amending Directive 2012/27/EU on energy efficiency

Directive 2012/27/EU, together with its amendment, aims to adapt EU energy law in line with the 2030 energy efficiency and climate goals and contribute towards the Energy Union strategy to:

reduce the EU’s dependence on imported energy;
cut emissions;
drive jobs and growth;
strengthen consumer rights; and
alleviate energy poverty.

KEY POINTS

Directive 2012/27/EU aimed to improve energy efficiency by 20% by 2020 compared to 1990 levels and included a requirement for all EU countries to set national energy efficiency targets to achieve this. It promotes energy efficiency* across the EU through a common framework of measures covering every stage of the energy chain, from generation to distribution and final consumption.

This directive, as revised by Directive (EU) 2018/2002, along with the revised Renewable Energy directive and a new Governance Regulation are part of the Clean Energy for All Europeans package.

The main amendments to the 2012 directive include:

meeting a 32.5% energy efficiency target by 2030 and anticipating further improvements after that;
removing barriers in the energy market that obstruct efficiency in the supply and use of energy;
EU countries to set their own national contributions for 2020 and 2030;
from 2020, EU countries will require utility companies to help their consumers use 0.8% less energy each year (for Malta and Cyprus 0.24%), which will attract private investment and support new competitors in the market;
clearer rules on energy metering and billing, strengthening consumer rights, in particular for people living in multi-apartment buildings;

EU countries must have transparent, publicly available national rules on the allocation of the cost of heating, cooling and hot water services in multi-apartment and multi-purpose buildings where these services are shared;
strengthening social aspects of energy efficiency by taking energy poverty into account in designing energy efficiency schemes and alternative measures.

FROM WHEN DOES THE DIRECTIVE APPLY?

Directive 2012/27/EU has applied since 4 December 2012 and had to become law in the EU countries by 5 June 2014.

Directive (EU) 2018/2002 has applied since 24 December 2018 and mostly has to become law in the EU countries by 25 June 2020. This is the case except for certain amended rules for which the deadline is 25 October 2020.

These concern:

metering for gas and electricity;
metering for heating, cooling and domestic hot water;
sub-metering and cost allocation for heating, cooling and domestic hot water;
remote reading requirement;
billing information for gas and electricity;
billing and consumption information for heating, cooling and domestic hot water;
costs of access to metering and billing information for electricity and gas;
cost of access to metering and billing and consumption information for heating, cooling and domestic hot water;
minimum requirements for billing and billing information based on actual consumption of electricity and gas (in Annex VII); and
new Annex VIIa on minimum requirements for billing and consumption information for heating, cooling and domestic hot water.

DOCUMENTS

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, pp. 1-56)

Successive amendments to Directive 2012/27/EU have been incorporated into the original document. This consolidated version is of documentary value only.

Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency (OJ L 328, 21.12.2018, pp. 210-230)

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank — Clean Energy For All Europeans (COM(2016) 860 final, 30.11.2016)

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank — A framework strategy for a resilient energy union with a forward-looking climate change policy (COM(2015) 80 final, 25.2.2015)

Communication from the Commission to the European Parliament and the Council — Implementing the Energy Efficiency Directive – Commission Guidance (COM(2013) 762 final, 6.11.2013)

Promotion of the use of energy from renewable sources

Directive (EU) 2018/2001 recasts and repeals previous legislation (Directive 2009/28/EC, Directive (EU) 2015/1513 and Council Directive 2013/18/EU).It has applied since 24 December 2018 and has to become law in EU countries by 30 June 2021.

It establishes a common system to promote energy from renewable sources* across the different sectors. In particular, it aims to:
set a binding EU target for its share in the energy mix in 2030;
regulate self-consumption for the first time; and
establish a common set of rules for the use of renewables in electricity, heating and cooling, and transport in the EU.

The increased use of energy from renewable sources will be crucial to combat climate change, protect our environment and reduce our energy dependency, as well as to contribute to the EU’s technological and industrial leadership and the creation of jobs and growth, including in rural and isolated areas.

KEY POINTS

Promoting renewable forms of energy is one of the goals of EU energy policy. The increased use of energy from renewable sources is an important part of the package of measures needed to reduce greenhouse gas emissions and to comply with the 2015 Paris Agreement on Climate Change and the EU policy framework for climate and energy (2020 to 2030).

This recast directive, along with the revised Energy Efficiency Directive and a new Governance Regulation, is part of the Clean Energy for All Europeans package, which aims to provide new, comprehensive rules on energy regulation for the next decade.

The directive:

ensures that the EU’s binding target is achieved cost-effectively;
establishes a stable, market-oriented European approach to renewable electricity;
provides long-term certainty for investors and speeds up procedures for permits to build projects;
enables consumers to take part in the energy transition with the right to produce their own renewable energy;
increasing the use of renewables in the heating and cooling and the transport sectors;
strengthens EU sustainability criteria for bioenergy.

The directive includes:

a binding EU overall target for 2030 of at least 32% of energy from renewable sources;
rules for cost-effective and market-based financial support for electricity from renewable sources;
protection of support schemes from modifications which put existing projects at risk;
cooperation mechanisms between EU countries, and between EU countries and non-EU countries;
simplification of administrative procedures for renewables projects (including one-stop-shops, time-limits, and digitalisation);
an improved guarantee of origin system, extended to all renewables;
rules allowing consumers to produce their own electricity, individually or as part of renewable energy communities, without undue restrictions;
in the heating and cooling sector:
an annual increase of 1.3 percentage points in the share of renewable energy in the sector
the right for consumers to disconnect from inefficient district heating and cooling systems and
third-party access for suppliers of renewables and waste heat and cooling to district heating and cooling networks;
in the transport sector:
a binding target of 14% with
a specific sub-target for advanced biofuels of 3.5% and
caps on conventional biofuels and on high indirect land use change risk* biofuels;
strengthened EU sustainability criteria for bioenergy, by extending their scope to cover all fuels produced from biomass regardless of their final energy use.

KEY TERMS

Energy from renewable sources: energy from renewable non-fossil sources, such as wind, solar (thermal and photovoltaic), aerothermal, geothermal, hydrothermal, ambient heat, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases.
Indirect land use change risk: changes in land use are brought about by growing more crops for ethanol or biodiesel production in response to the increased global demand for biofuels. There can be unintended consequences, including releasing more carbon emissions.

DOCUMENT

Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (OJ L 328, 21.12.2018, pp. 82-209)

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1-77)

Directive (EU) 2018/2002 of the European Parliament and of the Council of 11 December 2018 amending Directive 2012/27/EU on energy efficiency (OJ L 328, 21.12.2018, pp. 210-230)

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, pp. 16-62)

High-performance, low-cost, low-carbon and sustainable energy

The EU’s strategy for innovation and energy technology is an integral part of the EU’s energy policy. It aims to further develop energy technology and innovation.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Energy technologies and innovation (COM(2013) 253 final of 2 May 2013)

The EU’s strategy for innovation and energy technology is an integral part of the EU’s energy policy. It aims to further develop energy technology and innovation.

WHAT DOES THIS COMMUNICATION DO?

It lays out a strategy that complements existing legislation to ensure the EU continues to have a leading technology and innovation sector that can tackle the energy challenges for 2020 and beyond.

It aims to bring high performance, low-cost, low-carbon and sustainable energy technologies to the market, thus achieving objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth.

KEY POINTS

This communication encapsulates the principles of:

looking at the whole energy system when setting priorities (i.e. how an individual technology impacts on the entire energy system);
strengthening the link between innovation and energy policy;
pooling financial resources for research and innovation; and
focusing on technologies for post-2020.

The European Commission, alongside stakeholders in the EU’s strategic energy technology (SET) plan*, seeks to ensure the development (under the guidance of the SET plan steering group) of an integrated roadmap that:

1.consolidates technology roadmaps of the SET plan;

2.covers the entire research and innovation chain (from basic research to market roll-out); and

3.identifies clear roles and tasks for the various stakeholders, such as the European Energy Research Alliance (EERA) and the European Institute of Innovation and Technology (EIT).

Furthermore, an action plan of joint and individual investments in support of the integrated roadmap is to be defined.

The Commission and EU countries are to strengthen the reporting and monitoring of the integrated roadmap and the action plan by means of the strategic energy technologies information system (SETIS) of the SET plan.

The Commission is to establish a coordination structure (under the steering group of the SET plan) to promote investments in research and innovation on energy efficiency.

The communication calls on the European Parliament and the European Council to:

reaffirm their support of the SET plan;
endorse the key principles and developments needed for energy technology and innovation across the EU; and
support aligning EU, national and private resources to contribute to this strategy.

BACKGROUND

Low-carbon technologies (i.e. solar power, wind power or carbon capture and storage) have great potential in reducing greenhouse gas emissions (GHG), improving sustainable energy, creating jobs, economic growth and decreasing European reliance on external energy suppliers. However, innovation in this field is generally expensive, risky and slow, which is why a strategy for its development is needed.

For more information, see technology and innovation and the strategic energy technology plan on the European Commission’s website.

KEY TERMS

The SET plan aims to accelerate the development and deployment of low-carbon technologies. It promotes research, innovation and cooperation across Europe whilst seeking to improve technologies and bring down their costs.

SET-Plan for the development of low-carbon technologies

As part of its strategy to develop a low-carbon economy, the European Union (EU) has set itself climate and energy targets for 2020. Technology can play a major role in helping to meet those objectives. The SET-Plan is the technology pillar of the EU’s energy and climate policy.

Investing in the development of low carbon technologies

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – (SET-Plan) (COM(2009) 519 final of 7 October 2009)

The European strategic energy technology plan (SET-Plan) aims to boost the development and use of low-carbon technologies by 2020. It promotes cooperation between EU countries, companies and research institutions, which by pooling skills and facilities, can reduce costs. It also helps to finance projects.

KEY POINTS

European industrial initiatives exist for various forms of energy. The percentage of electricity they could produce by 2020 is given in brackets: wind (20 %), solar (15 %), bioenergy (14 %).

The European electricity grid initiative is designed to enable 50 % of networks in Europe to integrate renewables and effectively match supply and demand by 2020.
The carbon capture and storage initiative aims to make the technologies involved commercially viable.

The sustainable nuclear fission initiative is looking to have the first generation-IV prototypes in operation by 2020.

The energy efficiency initiative should ensure 25-30 ‘smart’cities (i.e. cities that use digital technologies which allow them to offer better public services for citizens and better use of resources with less impact on the environment) take the lead in the move to a low carbon future.

The European energy research alliance promotes coordinated cooperation between national research institutes on joint programmes. It is accompanied by moves to create science and research poles.

The Commission is exploring other technology options such as offshore renewable energy (such as wind energy, tidal power generators, etc.), energy storage, renewable heating and cooling. In the nuclear field, it is addressing the challenges of lifetime extension of facilities and disposal of nuclear waste.

The EU is actively cooperating with many of its international partners in, for instance, the strategic forum for international science and technology cooperation.
For more information, see the strategic energy technology plan website.

RELATED ACTS

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy technologies and innovation (COM(2013) 253 final of 2.5.2013)

A strategy for competitive, sustainable and secure energy

The world’s energy systems are undergoing major changes. These will have a permanent impact. It is vital that the European Union (EU) steers its various sources of energy onto a secure and sustainable path.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy 2020 – A Strategy for competitive, sustainable and secure energy (COM(2010) 639 final of 10.11.2010)

It proposes a new energy strategy for the run-up to 2020. This builds on the progress already made, identifies ways to address new challenges and sets out the steps needed to attain the EU’s medium-term policy objectives. The new energy strategy focuses on five priorities.

KEY POINTS

Achieving an energy-efficient Europe. The existing link between economic growth and rising energy use must be broken. Buildings and transport can play a major role, while public authorities should lead by example.

Ensuring the free movement of energy. A more integrated, interconnected and competitive market must be created. This can be done by fully implementing existing EU legislation and developing a blueprint to enable energy to move from one country to another.

Providing secure, safe and affordable energy for the public and businesses. Many users are unaware of the opportunities a liberalised energy market can provide. A more consumer-friendly policy, based on the benefits competition brings, would drive home the advantages.

Extending Europe’s lead in energy technology and innovation. Without a major technological shift, the EU will fail in its 2050 ambitions to shift electricity and transport away from fossil fuels. The Strategic Energy Technology Plan and the 6 European Industrial Initiatives (wind, solar, bio energy, smart grids*, nuclear fission and carbon capture and storage*) aim to spur the necessary innovation.

Securing strong international partnerships. Many of the challenges the EU faces – climate change, access to oil and gas, technology development and energy efficiency – are shared by other countries. Working together, with strong EU input, will make it easier to find the right answers.

KEY TERMS

Smart grids: energy networks that automatically monitor energy flows and adjust to changes in supply and demand.

Carbon capture and storage (CCS): capturing waste carbon dioxide (CO2), transporting and storing it, usually underground, where it will not enter the atmosphere.

For more information, see the European Commission’s 2020 Energy Strategy website.

RELATED ACTS

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy Roadmap 2050 (COM(2011) 885 final of 15.12.2011)

Making energy secure, affordable and sustainable – Energy union package

The global challenges posed to the energy system of the European Union (EU) require that EU countries unite and work together to ensure that energy becomes secure, affordable and sustainable for consumers.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank – A framework strategy for a resilient energy union with a forward-looking climate change policy (COM(2015) 80 final of 25 February 2015)

It sets out the strategy behind the EU’s proposed energy union package. As energy in the EU is regulated at national level, the aim of the energy union is to transform the EU’s energy system that currently comprises 28 national frameworks into one EU-wide framework.

The communication sets out 5 main dimensions underlying the energy union’s strategy to bring greater security, sustainability and competitiveness.

Security of supply

To ensure security of energy supply, the EU needs to:

diversify energy sources, including using its indigenous sources more efficiently;
work closely with its neighbours (including 8 non-EU countries that are members of the Energy Community) in times of energy shortages or crises;
create a body responsible for collective purchasing of gas during a crisis.

Emissions reduction

The EU energy targets to the year 2030 include a 40 % reduction in greenhouse gas (GHG) emissions from 1990 levels. Actions needed to achieve this include:

reviewing the EU’s emissions trading scheme (ETS) and encouraging investment in new technologies and infrastructure;
becoming a world leader in renewable energy, such as solar and wind power.
A fully integrated internal market

Completing a fully integrated EU internal energy market will be achieved through:

more interconnectors between EU countries to encourage fast and free energy flow;
increased work and maintenance on essential infrastructure;
greater competitiveness between suppliers that should allow for lower prices.

Energy efficiency

The EU believes that reductions in energy consumption will reduce energy imports, reduce pollution and increase preservation of domestic energy resources. The communication particularly stresses the need for increased investment and awareness of the potential of energy savings in the building and transport sectors.

Research and innovation

The EU envisages breakthroughs in low-carbon technologies. These should be achieved through coordinating research and financing projects in partnership with the private sector.