Proposal for Energy Efficiency Directive published

Proposal for a Directive on energy efficiency aiming to create a common framework for the promotion of energy efficiency in the EU to reach the target of 20% primary energy savings by 2020 has been published. It sets several energy efficiency requirements for end-user sectors such as the cement industry. High efficiency standards would have to be applied by the public sector for the renovation of owned buildings, and for the purchase of buildings, products and services.

These measures are minimum requirements; Member States can adapt them according to their own national circumstances and decide whether or not to include binding targets in their national energy efficiency plans. However, the European Commission will monitor the implementation of the national energy efficiency targets, and check by 30 June 2014 whether they will deliver the European 20% savings objective.

The proposal would also repeal the Cogeneration Directive and the Energy Services Directive, and extend their scope to all sectors with energy savings potential.

The Proposal contains important requirements related to public building refurbishment rates; to public spending and to cogeneration. As from 1 January 2014, 3% of the total floor area of buildings owned by public bodies is to be renovated each year. A derogation for social housing has been removed from the Proposal. Member States would be able to allow public bodies to count towards their annual renovation rate the excess of renovated building floor area in a given year as if it had instead been renovated in any of the two previous or following years.

Finally, Article 9 on penalties could have an indirect impact on electricity prices, as power companies could be fined by Member States if they fail to help customers reduce their energy consumption.

The proposal can be found here: http://ec.europa.eu/energy/efficiency/eed/doc/2011_directive/com_2011_0370_en.pdf