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Published on: 22. August 2023

(EED) Energy Efficiency Directive Sets out rules and targets for achieving 11.7% improvement in energy efficiency by 2030. The Energy Efficiency Directive (EED) is a European Union (EU) legislative instrument that aims to promote energy efficiency and the rational use of energy resources within the member states. The directive sets out a range of measures to improve energy efficiency across various sectors, including industry, transportation, and buildings.

Key objectives and provisions of the Energy Efficiency Directive include:

Energy Savings Targets: The EED establishes binding energy savings targets for EU member states to collectively achieve. The directive sets out a long-term target to improve energy efficiency by 20% by the year 2020 and includes provisions for setting subsequent targets.

Energy Efficiency Obligations: The directive requires member states to introduce energy efficiency obligation schemes or alternative measures to ensure that energy distributors and retail energy sales companies achieve annual energy savings targets. These obligations encourage companies to promote energy efficiency measures among their customers.

Energy Efficiency Plans: Member states are required to develop and implement national energy efficiency plans outlining the policies and measures they intend to implement to achieve the energy savings targets.

Renovation of Public Buildings: The EED includes provisions to encourage the renovation of public buildings to improve their energy performance and contribute to energy savings.

Energy Audits and Energy Management Systems: The directive mandates regular energy audits for large enterprises to identify energy-saving opportunities. It also encourages the adoption of energy management systems to promote continuous improvement in energy performance.

Metering and Billing Information: The EED requires member states to ensure that energy consumers have access to accurate and transparent information about their energy consumption, enabling them to make informed decisions about energy use.

Promotion of High-Efficiency Cogeneration and District Heating and Cooling: The directive promotes the efficient use of energy by encouraging the development of high-efficiency cogeneration and district heating and cooling systems.

Support for Energy Services Companies (ESCOs): The EED encourages member states to support energy services companies that provide energy efficiency services to end-users.

Implementation and Reporting: Member states are required to transpose the directive’s provisions into national law and report on their progress toward achieving energy savings targets to the European Commission.

The Energy Efficiency Directive is a significant tool in the EU’s efforts to enhance energy security, reduce energy consumption, and mitigate climate change by improving energy efficiency. It forms part of the EU’s broader energy and climate policy framework.

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