CLEAN ENERGY FOR ALL EUROPEANS Proposals on energy efficiency

1. STRUCTURE OF THE PACKAGE INDEX 1. STRUCTURE OF THE PACKAGE 2. ENERGY UNION GOVERNANCE 3. RENEWABLES 4. ENERGY EFFICIENCY 5. NEW ELECITRICITY MARKET DESIGN

Energy Efficiency FIRST PRINCIPLE Why? The cheapest energy is the one that we do not consume Energy efficiency should be considered as a source of energy in itself: It is endless It is available everywhere

… while promoting growth, jobs and investment Energy Efficiency is the most cost-effective way of achieving Energy Union objectives… Security of supply Global leadership in renewables Decarbonization (Paris Agreement) … while promoting growth, jobs and investment

WhAT pieces of legislation? Amending Directive 2012/27/EU on Energy Efficiency Amending Directive 2010/31/EU on Energy Performance of Buildings Ecodesign Working Plan 2016-2019

ENERGY EFFICIENCY DIRECTIVE (EED) OBJECTIVES Adapting to Energy and Climate 2030 Framework Streamlining, simplifying and increasing coherence with other elements of the package, namely: New governance regulation New electricity market design Update of legislation on renewables

ENERGY EFFICIENCY DIRECTIVE (EED) OTHER INSTITUTIONS' POSITIONS WHERE WE ARE TODAY OTHER INSTITUTIONS' POSITIONS WHAT WE SUGGEST 2020 Framework: 20% non-binding national target … at national level EUCO Conclusions 2014: at least 27% target for 2030 to be reviewed by 2020 having in mind a 30% target EP 2015 Resolution: binding 40% target … at EU level 30% binding target

THE 30% ENERGY EFFICIENCY TARGET (Articles 1 and 3) What are the positive impacts compared to a 27% target? Security of supply: avoided oil & gas imports = €70 billion Creation of 400,000 more jobs Lower electricity price for households and energy intensive industries Increase in GDP of around 0.4% (€70 billion) Decarbonisation is cheaper in the long run (2021-2050): €9 billion/year less Reduction in pollution control costs & health damage costs by €4.5 – 8.3 billion SUSTAINABLE GROWTH SAVINGS NOW (b.a.u.) 27% 30% 158€ MWh 161€ 157€

ENERGY SAVINGs (Article 7 EED) Extending existing energy saving obligations beyond 2020 (1.5%/year) Improving coherence with the EPBD Strengthening the social dimension Attracting private investment for energy efficiency renovations Lower energy bills for consumers and reduced energy demand Requiring MS to consider energy poverty in designing energy efficiency obligations schemes or alternative measures Increasing buildings renovation rate Simplifying and streamlining

METERING AND BILLING PROVISIONS (Articles 9-11 EED) Contribute to deliver a New Deal for Energy Consumers: Clarification of the EED provisions on metering and billing for thermal energy (district heating/cooling, central supply of heat/cooling/hot water). Ensuring access to clearer consumption information and more frequent feedback for consumers in multiple-apartment buildings. New meters to be remotely readable by 2020, and existing meters to be adapted to be remotely readable by 2027 where this is cost effective. Contribute to deliver a New Deal for Energy Consumers: "…providing consumers with frequent access, including in near real-time, to partially standardised, meaningful, accurate and understandable information on consumption and related costs as well as the types of energy sources" Clarification that the EED provisions will focus only on metering and billing will be centrally provided thermal energy (district heating/cooling, central supply of heat/cooling/hot water). Metering and billing for gas and electricity will be covered in the forthcoming Market Design Initiative. Clarification that that consumers includes households in multi-apartment buildings equipped with "sub-metering" – they should have access to clearer consumption information and more frequent feedback. New meters to be remotely readable by 2020, and existing meters to be adapted to be remotely readable by 2027 where this is cost effective. This will allow more frequent information to be provided to consumers and is a cheaper and less intrusive way of reading meters

ENERGY PERFORMANCE OF BUILDINGS DIRECTIVE (EPBD) SMARTER AND MORE SUSTAINABLE BUILDINGS FASTER Smart To encourage the use of ICT and smart technologies ensuring buildings operate efficiently: By introducing building automation and control systems as alternative to physical inspections; By encouraging the roll out of the required infrastructure for e-mobility (with focus on large commercial buildings and excluding public buildings and SMEs); By introducing a smartness indicator to assess the technological readiness of the building to interact with the occupants, the grid, while managing itself efficiently Simple By streamlining outdated or cumbersome provisions that have not delivered the expected output

SMART FINANCE FOR SMART BUILDINGS (EPBD) LINKING REGULATORY MEASURES WITH FINANCIAL SUPPORT Creating national energy efficiency platforms in Member States Providing reinforced technical support by the EU Assistance and aggregation De-risking Building on EFSI II blending with ESIF funds Increasing transparency Understanding the risks and benefits for financiers and investors More effective use of public funds

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