A new Directive on Energy Efficiency

- Challenges addressed
& solutions proposed -

DG Energy
22 June 2011
AS DEPENDENCE ON ENERGY IMPORTS IS LIKELY TO GROW

Business as usual scenario based on 2009 figures

OIL GAS
in % 2005 2008 2020 2030 2005 2008 2020 2030

100 94 %
93 %
84 %
80 82 % 83 %
76 %
62 %
60 58 %

40

20

Today, Europe imports more than half of the energy it uses. If nothing
changes, our dependence on fossil fuel imports will rise by 2030.
Source: European Commission
AND ENERGY USE IS A MAJOR SOURCE OF EMISSIONS

Share of greenhouse gas emissions in 2008

Agriculture
10%
Industry
Processes
8% Waste
3%

Other
0%
Energy
79%

Source: EEA 2010

MEETING ALL THREE 20-20-20 BY 2020 GOALS BECOMES A
MATTER OF URGENCY
Reduce greenhouse Increase share of Reduce energy
gas levels by 20% renewables to 20% consumption by 20%
100%
Current Current
trend to
2020
-20% trend to -10%
2020

Current
trend to
2020
20%
 SO FAR THE EU IS NOT ON TRACK TO MEET ITS 20% ENERGY
SAVING TARGET BY 2020
1900
Projections from 2007 business
1842 Mtoe
1850 Projections from 2009 as
20% Energy saving objective
Primary energy consumption*, Mtoe

usual
1800

1750

1700 1678 Mtoe Status

1650
today

1600
GAP
1550
1474 Mtoe
1500 -20%
objective
1450

1400
2005 2010 2015 2020

* Gross inland consumption minus non-energy uses

DESPITE ITS CRUCIAL BENEFITS FOR EUROPE
Reduce EUs energy bill by about 200 bn annualy in 2020
Create up to 2 million new jobs by 2020
Boost R&D & markets for EU global leadership

Competitiveness

Security
of Sustainability
supply

Reduce EUs energy dependence

Reduce CO2 emissions
Reduce investments in energy infrastructures
Limit environmental degradation
Improve the energy trade balance
AND THE COMPREHENSIVE SET OF EUROPEAN POLICIES & MEASURES IN
PLACE TO ADDRESS ENERGY EFFICIENCY IN ALL ITS ASPECTS

EUROPEAN ENERGY EFFICIENCY

POLICIES & MEASURES

Energy Efficiency Plan

International Programmes
Targets & networks
cooperation

Financial
R&D
tools
Energy
efficiency
legislation
Soft laws Fiscal tools
COMBINED WITH NATIONAL INTENTIONS WILL NOT SUFFICE

in
Mtoe 400
350
EU 20%
300
250
200
150 Existing
national EE
100 targets as
of 2011
50
0
TO TAP THE REMAINING ECONOMIC ENERGY SAVING POTENTIALS
FOR 2020 THROUGHOUT THE SECTORS
Savings expected to be achieved with already
existing measures

Remaining saving potential to be addressed with

new measures

29%
11%
16%
2%

5%
A NEW IMPETUS IS NEEDED: COMMISSION PUTS FORWARD A NEW
ENERGY EFFICIENCY DIRECTIVE

Public Sectoral House- Energy

Services Industry
sector measures holds supply

Indicative General
national EE New measures
targets EED promoting EE

Monitoring &
Reporting
PUBLIC SECTOR TO LEAD BY EXAMPLE

Status EED proposals

Public sector Purchase of products, services

19% consumption makes & buildings with high energy
important share of efficiency performance
EUs GDP

12% Share of public

buildings in building Annual renovation target of 3%
stock for public buildings above 250
m

Low average energy

performance of
Local energy efficiency plans
existing buildings
and introduction of energy
stock, incl. public
management systems
buildings
Cost optimal
renovation can bring
More systematic use of Energy
up to 60% energy
Performance Contracting
savings
CREATING BENEFITS FOR CONSUMERS THROUGH THE PROVISION
OF TAILORED ENERGY SERVICES AND INFORMATION

Status EED proposals

Considerable saving National energy efficiency
potential unused in obligation scheme for utilities
the residential and
services sectors
Obligation for individual energy
Slow uptake of market meters, reflecting actual energy
for energy efficiency consumption & information on
services actual time of use
Lack of awareness &
access to appropriate
information on EE Ensure accuracy & frequency of
benefits billing based on actual
Technological consumption
developments (e.g.
smart meters/ grids)
Appropriate information with the
not sufficiently
bill providing comprehensive
reflecting households
account of current energy costs
interests
IMPROVING ENERGY EFFICIENCY IN TRANSFORMATION AND
DISTRIBUTION OF ENERGY

Status EED proposals

Fragmented 10-year national heat & cooling plans:

regulations &
Remaining incentives to address
potential
waste across supply
chain
Achieved
savings CHP uses 30% less fuel
for the same amount of
heat & power but level of
use in EU low: 11% vs.
21%.
New generation
installations not
systematically
reflecting level of Best
Available Technologies
transparency, predictability &
alignment of policies for
investments
Waste heat recovery (CHP)
obligation for new and existing
power & industrial plants
Network tariffs design to encourage
offering services for consumers
allowing them to save energy &
control consumption
National annual inventories of
generation installations to monitor
efficiency levels
INCREASE AWARENESS FOR BENEFITS STEMMING FROM ENERGY
EFFICIENCY IMPROVEMENTS IN INDUSTRY

Status EED proposals

Important share in Member States to create

28% overall final energy incentives for SMEs to undergo
consumption energy audits

Remaining Considerable Dissemination of best practices on

potential
progress made but benefits of energy management
potential remaining systems for SME businesses
Achieved
savings

Energy efficient Mandatory audits for large

technologies and companies & incentives for the
EE best practices implementation of recommended
readily available measures and the introduction of
Energy Management Systems
Thank you!

For further information on energy efficiency please consult
our website:
http://ec.europa.eu/energy/efficiency/
POSSIBLE TIME PLANNING AFTER ADOPTION

European Parliament to nominate a rapporteur

First presentation & discussions in the Council Energy
July 2011 Working Group under Polish Presidency

September Continuation of discussions in the Council Energy

- December Working Group
2011 Discussion in the EP
Energy Council (November)
January Achieving of political agreement
June 2012
June Finalization of the legislative text under the Cyprus
December Presidency
2012 Entering into for force of Energy Efficiency Directive
by the end of 2012
December Implementation of the new Directive in the MS
2013
June 2014 Assessment of progress towards 20% saving
objective