Updated: February 2018

The energy efficiency directive (EED) supplements the other EU energy efficiency directives to increase energy efficiency and reach the EU 2020 target of 20% increase in energy efficiency. Its main elements are that it mandates national (indicative) energy efficiency 2020-targets and national energy efficiency action plans, require energy supply companies to increase energy savings at least 1.5% per year of the energy they sell, require better information to consumers on their consumption, require central governments to energy renovate 3% of their buildings annually, energy audits every four year for large companies, and energy efficiency in energy supply with promotion of cogeneration (CHP), district heating and use of waste heat.
The requirements of the directive are entering into force in 2014 and 2015 and most of them are in force until end of 2020. The directive replaces the energy service directive and the cogeneration directive.
The Directive is under revision in 2016-18 read more Revised Energy Efficiency Directive.

Reaching Energy Efficiency Targets for 2020

In 2013, the EU countries presented their indicative national energy efficiency targets for 2020, as required by EED. Some targets require large additional measures like those for Slovakia and Belgium's while some targets are below the "business as usual" developments of the countries, like Estonia's Adding up the national targets does not meet the overall EU target of 20% reduction of energy efficiency below baseline in 2020, but rather a 14-17% reduction. Because the national targets do not add up to the EU target, the EU Commission is expected to propose additional actions.

The EU 20% energy efficiency target for 2020 is defined as 20% reductions compared with a baseline of increased consumption. To make this operational the target is defined as an energy consumption in 2020 of no more than 1 474 Mtoe primary energy or no more than 1 078 Mtoe of final energy for the 27 EU countries ' This is 15% below the actual consumption in 2007 when the baseline was developed. When Croatia entered EU the target was revised to "1 483 Mtoe primary energy or no more than 1 086 Mtoe of final energy''.

National Energy Efficiency Action Plans (NEEAPs)

Starting April 2014, the EU countries shall every three years develop National Energy Efficiency Action Plans (NEEAPs). The NEEAPs shall describe the national energy efficiency actions, realised and expected energy savings and progress towards reaching the national energy efficiency targets. You can find the 28 NEEAPs here.

Many of them describe not only the energy efficiency policy measures of the country, but also how it will implement the requirements of the EED into national legislation and how the country succeeded to implement the previous Energy Service Directive (ESD).

Main Elements of EED in national legislation

The EED was agreed on the 13th June 2012 as directive 2012/27/EU. Its main binding measures to be implemented in national legislation are:

Energy distribution companies shall achieve energy savings of at least 1,5% each year of their energy sales, in average for each country 2014-2020. However, a quarter part of that 1,5 % reduction can be achieved through these measures:
- ETS (EU Emission Trading System of carbon dioxide);
- Early Action, the member states will be able to include in their saving goals the saving measures launched before the law comes into force;
- Future Actions will be able to count in their national energy saving schemes, not only current real savings.
- Savings at source: Countries will also be able to count energy savings made at the source, in the energy transformation sector, before it is distributed to clients.
Companies distributing energy (petrol, diesel) to transport can be excluded from this requirement

Consumers shall have easy access to their energy consumption data in real-time and historically energy consumption through good information systems and more accurate individual metering

Large enterprises shall carry out energy audits at least every four years, with a first energy audit at the latest by 5 December 2015. The countries shall set incentives for SMEs to undergo energy audits to help them identify their potentials for reduced energy consumption.

Central governments shall renovate 3% annually of the buildings they owned and use. They shall also include energy efficiency considerations in public procurement, covering purchase of energy efficient buildings, products and services.

Efficiency shall be increased in energy generation with a number of measures:
- monitoring of efficiency levels of new energy generation capacities,
- national assessments for co-generation and district heating potential
- national measures must be in place for the uptake of cogeneration and district heating potentials as well as recovery of waste heat must be developed until 31 December 2015, including recovery of waste heat

- Each member state will draw up a roadmap to make its entire buildings sector more energy efficient by 2050.

Read the text of the EED and EU Commission information on EED

Large Gains of EED
On 19-20 April 2012, the Commission Services presented a non-paper on the Energy Efficiency Directive at the Informal Energy Council. It concluded that the total cost impacts of the Directive over the period 2011-2020 would be negative with an annual average reduction in overall spending on energy of about €20 billion.See it here.

It was noted with the development of the EED proposal that the public sector uses large amounts of energy and therefore offers a great opportunity for savings in both energy and money. Similarly the public sector is quite visible to citizens and could create a more positive image for energy efficiency. One scenario estimated that investments in energy efficiency in the public sector will cost the EU €1.6 billion in while potentially saving €1.92 billion This analysis os behind the directive requirements for a 3% per annum rate of renovation for central government buildings and the the stricter requirements for public bodies to buy more energy efficient supplies and equipment.

Energy Efficiency Directive Proposed
On June 26, 2011, the new Energy Efficiency proposal was announced. The proposal effectively repeals Combined heat and power (CHP) (2004/8/EC), Energy Services Directive (2006/32/EC), and also the articles 9(1), 9(2) of Energy Performance in Buildings (2010/32/EC).
In sum the new directive (EED) is proposed to combine energy efficiency into one coherent structure. The proposal underscores primary reasons for including a robust strategy for energy efficiency in accordance with the EU´s commitment to reach its goals for 2020. EED was meant to be the legislation to realise the EU 20% energy efficiency target by 2020.

New Methodology for Energy Efficiency in Cogeneration (CHP)
The methodology for determining CHP is outlined in Annex I of this directive. The methodology includes some guidelines for high efficiency co-generation, primary energy savings, and an alternate calculation of energy savings. This methodology is included in the national, annual progress reports and in statistics on national electricity and heat production, as well as statistics on primary energy saved with co-generation.

Read more:

Revised Energy Efficiency Directive - New targets for 2030

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