The Energy Efficiency Directive (EED)

The Energy Efficiency Directive (2012/27/EC) was adopted and entered into force in 2012. In addition to EU 2020 energy savings target of 20%, it includes EU-wide provisions related to energy efficiency measures, such as:

•   A mandatory 1.5% annual energy savings target for each Member State. The implementation of this provision started in January 2014 and runs until 2020.

•   An obligation to renovate 3% of the floor area covered by buildings owned and occupied by central government each year, starting in 2014. Alternatively, Member States can take other measures in their central government buildings to achieve an equivalent level of savings.

•   A requirement for Member States to prepare long-term strategies in 2014 for the renovation of their whole national building stock and report on their progress every three years, with a focus on mobilising investments in this sector.

•   A requirement for large enterprises to go through an energy audit at least every four years. Small and medium size enterprises are also encouraged to do the same.

•   A compulsory assessment of the potential to implement highly efficient cogeneration, including for district heating and cooling, to be carried out by each Member State by 2015.  Depending on the outcome of the assessment, Member States need to develop measures to facilitate the exploitation of this potential.

The EED adds significant value to the existing European legislative framework, helping create a level playing field among Member States. This is especially true for the mandatory 1.5% annual energy savings target in the EED, which is the main tool to stimulate national action on energy efficiency. The provision is set to be revised in 2016, as it currently runs only until the year 2020. This revision is an excellent opportunity to extend the requirement beyond 2020 and strengthen it further by eliminating the loopholes that reduce its impact by around a half.

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