Energy efficiency targets and rules to be upped in Europe

A provisional agreement has been reached with the European Parliament and the Council to reform and strengthen the EU Energy Efficiency Directive.

The agreement establishes an EU energy efficiency target of 11.7% for 2030 – up from the 9% of the Commission’s original ‘Fit for 55′ proposal.

The annual energy savings obligation nearly doubles, with EU countries required to achieve new savings each year of 1.49% of final energy consumption on average from 2024 to 2030, up from the current level of 0.8%.

The requirement is to reach 1.9% by the end of 2030.

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A statement from the Commission reads that for the first time, the energy efficiency first principle is given legal strength with a clear requirement for EU countries to take energy efficiency into consideration in policy, planning and major investment decisions in the energy sector and beyond.

The revised rules give a greater responsibility to the public sector to increase energy efficiency, with public bodies needing to systematically take into account energy efficiency requirements in their public procurement of products, services, buildings and works.

A new annual energy consumption reduction target of 1.9% is introduced for the public sector, while EU countries’ obligation to renovate each year at least 3% of the total floor area of buildings owned by the public administration now also covers the regional and local levels.

The revised directive also requires companies to become more energy efficient, with energy management systems to become a default obligation for large energy consumers that exceed 85TJ of annual energy consumption.

Otherwise, companies with consumption exceeding 10TJ will be subject to an energy audit.

A reporting scheme for the energy performance of large data centres is also introduced.

Heating and cooling and finance

Under the new rules, EU countries will have to promote local heating and cooling plans in large municipalities having populations above 45,000. Also, with the revised definition of efficient district heating and cooling, minimum requirements will be gradually changed to ensure a fully decarbonised district heating and cooling supply by 2050.

Support to new high efficiency cogeneration units using natural gas and connected to district heating in efficient district heating and cooling systems will only be possible until 2030, whereas any other fossil fuel use will be banned for new heat generation capacities in such systems.

The deal also further strengthens provisions on energy efficiency financing to facilitate the mobilisation of investments. EU countries will be required to promote innovative financing schemes and green lending products for energy efficiency by ensuring their wide and non-discriminatory offer by financial institutions. Countries also will have to report on the volume of energy efficiency investments.

Finally, the agreement includes the first EU definition of energy poverty and countries will have to implement energy efficiency improvement measures as a priority among people affected by energy poverty, vulnerable customers, low income households, and where applicable, people living in social housing.

Among these is the creation of one-stop-shops for technical and financial assistance and out-of-court mechanisms for the settlement of disputes.

With the agreement reached, it must now be formally adopted by the European Parliament and Council and then published to enter into force.