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Energy Efficiency Directive
The Energy Efficiency Directive (2012/27/EU) lays down rules designed to remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy. Its main provisions are organised within chapters on efficiency in energy use and in energy supply.
The directive was amended in 2018 by Directive 2018/2002 and it establishes an EU-wide target for 2030 of 32.5% energy efficiency. This means that the EU energy consumption should be of no more than 1,273 Mtoe of primary energy and/or no more than 956 Mtoe of final energy. Following the UK’s departure from the EU, the new target corresponds to no more than 1,128 Mtoe of primary energy and no more than 846 Mtoe of final energy consumption.
To achieve the EU-wide target, each Member State had to set an indicative national energy efficiency target expressed in terms of either primary or final energy consumption, primary or final energy savings, or energy intensity, in their national energy and climate plans.
A substantial revision of the EED came as part of the Fit for 55 legislative package in 2021 in order to deliver on the increased climate ambition of the EU Green Deal.
The revised EED made it binding for EU countries to collectively ensure an additional 11.7% reduction in energy consumption by 2030, compared to the 2020 reference scenario. This means the overall EU energy consumption by 2030 shall not exceed 992.5Mtoe for primary energy and 763 Mtoe for final energy. The recast EED aimed to greatly increase energy efficiency in EU Member States by focusing on sectors with high energy-savings potential (heating and cooling, industry and energy services) and expecting the public sector to lead by example.
The revised text also raised (in an increasing manner) the annual energy savings obligations that Member States are expected to meet over the 2024-2030 period (+1.3% in 2024-2025, +1.5% in 2026-2027 and +1.9% in 2028-2030 compared to +0.8 % under the 2018 EED).
The co-legislators also agreed that Member States could count in the calculation towards the target, energy savings realised through policy measures under the current and the revised Energy performance of buildings directive; measures stemming from the EU ETS (for installations and for buildings and transport); emergency energy measures.
As to the public sector leading by example, The Council and the Parliament agreed to a specific obligation for the public sector to achieve an annual energy consumption reduction of 1.9% that can exclude public transport and armed forces. In addition to this, member states would be required to renovate each year at least 3% of the total floor area of buildings owned by public bodies.
To achieve a fully decarbonised district heating and cooling sector by 2050, while avoiding undue burden on people affected by or at risk of energy poverty, minimum efficiency requirements will be gradually and progressively raised to integrate renewable and energy. Finally, Member States would need to monitor and publicly disclose data on the use of energy in data centres, so that the EU has a clearer picture of this concerning phenomenon.
What's in it for hydrogen?
The EED provides a regulatory framework that indirectly influences the hydrogen sector by promoting energy efficiency, sector integration, and building standards, among other measures. It is important to note that the precise impact of the EED on the hydrogen sector may vary depending on how it is implemented at national or regional levels, as well as other contextual factors.
Its provisions can affect the hydrogen sector in several ways:
- Demand for Low-Energy Solutions: The EED encourages the adoption of energy-efficient technologies and practices, which could lead to a higher demand for low-energy solutions. In the context of hydrogen technologies, this may favour the development and implementation of electrolysers with improved energy efficiency.
- Sector Integration: The EED emphasises the integration of different energy sectors, such as electricity, heating, and transportation, to optimize energy use. Hydrogen can play a crucial role and EED can drive the development and deployment of hydrogen technologies for applications like hydrogen-powered vehicles, hydrogen heating systems, or hydrogen-based energy storage.
- Building Efficiency Standards: The EED sets energy efficiency standards for buildings, including requirements for heating and cooling systems. This affecst the hydrogen sector by incentivising the adoption of hydrogen-based heating technologies, such as hydrogen boilers or fuel cells, in buildings.
- Local Heating & Cooling Plans: The EED introduces an obligation for municipalities with over 45,000 inhabitants to craft local heating and cooling plans. These plans take a comprehensive approach, encompassing all potentially available heating options at the city level, such as low-temperature district heating readiness, high-efficiency cogeneration, waste heat recovery, and other renewable energy applications. Recognizing that not everything can be electrified, these plans are essential for promoting a multi-technological approach and providing access to various options based on local conditions, building age, and specific neighbourhood requirements.
Links to the original document and additional information:
Proposal for a Directive of the European Parliament and of the Council on energy efficiency
