ANNEX

1. INTRODUCTION

Directive 2010/31/EU (‘EPBD’) promotes improvement in the energy performance of buildings, including of technical building systems. In particular, the Directive clarifies the systems to which the requirements are to be applied and includes specific provisions to ensure that those systems are designed, dimensioned, installed and adjusted in a way that optimises performance. For those systems that have a particularly significant impact on energy performance, the Directive also requires inspections that regularly monitor system efficiency. It considers electronic monitoring and control as a possible alternative to inspections.

Directive 2012/27/EU (‘EED’) contained provisions on building renovation and long-term strategies for mobilising investment in the renovation of national building stocks.

The EPBD and the EED have been amended by Directive (EU) 2018/844, which entered into force on 9 July 2018, strengthens the above elements and, increases the types of system whose performance are to be optimised. It also strengthens the role of electronic monitoring, automation and control and includes additional requirements that support the deployment of electric vehicle recharging infrastructure in building car parks.

Expanding the scope of the definition of technical building systems to include more systems and, more generally, the need to reflect the evolution of buildings and the energy system have made it necessary to update the EPBD's framework for calculating the energy performance of buildings. Most notably, this means improving the transparency of energy performance calculations and energy performance certificates, in particular in relation to the calculation of primary energy factors.

The aim of this Recommendation is to help ensure full implementation and enforcement of Union energy legislation. It provides guidance on how to understand and transpose the EPBD, specifically those provisions that concern technical building systems and their inspections, including: requirements on installing self-regulating devices and building automation and control systems (Article 8 and Articles 14 and 15 of the EPBD), electromobility recharging infrastructure (Article 8 of the EPBD), and the calculation of primary energy factors (Annex I to the EPBD).

The guidelines set out in this Annex present the view of the Commission services. It does not alter the effects of the Directive and is without prejudice to the Court of Justice binding interpretation of Articles 2, 8, 14, 15 and Annex I of the EPBD.

2. TECHNICAL BUILDING SYSTEMS AND THEIR INSPECTIONS, INCLUDING REQUIREMENTS ON THE INSTALLATION OF SELF-REGULATING DEVICES AND BUILDING AUTOMATION AND CONTROL SYSTEMS

2.1. Aim: to ensure optimal performance of technical building systems and support the management of energy and the indoor environment

The EPBD includes provisions on requirements for technical building systems and on the assessment and documentation of system performance, whose aim is twofold. Firstly, the assessment and documentation of system performance aims to ensure that technical building systems are adequately designed, installed and commissioned in order to optimise their actual performance. Secondly, it aims to ensure that any intervention that can have an impact on the performance of a technical building system is tracked and documented. This is important as such information is valuable to the owner and to facilitate the assessment of the performance of the building as a whole (e.g. in the context of energy performance certification).

The amendment to the EPBD expands the scope of the regular inspection of technical building systems. The aim of these inspections is to evaluate system performance. Inspections should also identify issues or problems, propose solutions or improvement measures, and log the results of the inspection in a report for future reference.

The EPBD includes requirements for the installation of self-regulating devices that are able to regulate indoor temperature in buildings, with the aim of improving the management of energy consumption while limiting costs. It also includes a requirement to install building automation and control systems (BACS) in all (existing and new) non-residential buildings over a certain effective rated output of heating, ventilation and air-conditioning systems. This is because BACS lead to significant energy savings, improve the management of the indoor environment and, as such, are beneficial to both building owners and users, in particular in large non-residential buildings.

2.2. Scope of provisions on technical building systems and their inspections, self-regulating devices and BACS

This sub-section recalls the scope and content of these provisions and highlights the differences introduced by amendments from Directive (EU) 2018/844 where relevant.

2.2.1. Technical building systems: system requirements, assessment and documentation of overall energy performance (Article 2, Article 8(1) and 8(9) of the EPBD)

Before amendment: before the amendment, Article 8(1) of the EPBD required Member States to set system requirements in respect of the overall performance, proper installation and appropriate dimensioning, adjustment and control of technical building systems. This obligation applied to technical building systems installed in existing buildings and Member States could also apply it to technical building systems installed in new buildings. In addition, before amendment, Article 2(3) of the EPBD defined a technical building system as ‘technical equipment for the heating, cooling, ventilation, hot water, lighting or for a combination thereof, of a building or building unit’.

After amendment: with regard to technical building systems, Article 8 of the EPBD was replaced, with the following to be noted:

(a) the provisions on technical building system requirements in Article 8(1) remain substantially unchanged (with the exception of the systems for which the system requirements had to be applied, listed in subparagraph 2, which has been repealed);

(b) the amendment updates and extends the definition of ‘technical building systems’ (Article 2(3));

(c) the amendment introduces new provisions on the assessment and documentation of the overall performance of technical building systems (Article 8(9)).

2.2.2. Technical building systems: inspections (Articles 14 and 15 of the EPBD)

Before amendment:

Article 14 of the EPBD set inspection requirements for heating systems with a rating over 20 kW. Member States had to determine inspection frequencies based on the type of the system, effective rated output, the costs of inspections and estimated energy savings. Heating systems with an effective rating of over 100 kW had to be inspected at least every 2 years. Member States could also allow for reduced inspection frequency for systems with electronic monitoring and control systems in place. As an alternative to inspections, Article 14(4) allowed Member States to opt to take measures that would ensure that users receive advice concerning the replacement of boilers, other modifications to the heating system and alternative solutions to assess boiler efficiency and appropriate size. The overall impact of this approach had to be equivalent to the expected impact of inspections.

Article 15 of the Directive set inspection requirements for air-conditioning systems with a rating over 12 kW. Member States had to determine inspection frequencies based on the type of the system, effective rated output, the costs of inspections and estimated energy savings. Member States could allow for reduced inspection frequency for systems with electronic monitoring and control systems in place. As an alternative to inspections, Article 15(4) allowed Member States to opt to take measures that would ensure that users receive advice concerning the replacement of air-conditioning systems and other related modifications, including inspections to assess the system's efficiency and appropriate size. The overall impact of this approach had to be equivalent to the expected impact of inspections.

After amendment:

Article 1(7) of Directive (EU) 2018/844 replaces the provisions related to inspections in Article 14 and 15 of the EPBD.

Under Article 14 of the EPBD, heating systems and combined heating and ventilation systems with an effective rating of 70 kW or lower no longer require inspections. Under the same Article, heating systems and combined heating and ventilation systems with an effective rating over 70 kW must still be inspected at regular intervals. The EPBD allows for exemptions for: (a) systems that are under energy efficiency contractual arrangements (or similar), in accordance with Article 14(2); (b) systems operated by a utility or a network operator, in accordance with Article 14(2); (c) systems in non-residential buildings equipped with automated and control systems, in accordance with Article 14(4) and 14(6); (d) systems in residential buildings with specific monitoring and control functionalities, in accordance with Article 14(5) and 14(6).

Under Article 15 of the EPBD, air-conditioning systems and combined air-conditioning and ventilation systems with an effective rating of 70 kW or lower no longer require inspections. Under the same Article, air-conditioning systems and combined air-conditioning and ventilation systems with an effective rating over 70 kW must still be inspected at regular intervals. The EPBD allows for exemptions for: (a) systems under energy efficiency contractual arrangements (or similar), in accordance with Article 15(2); (b) systems operated by a utility or a network operator, in accordance with Article 15(2); (c) systems in non-residential buildings equipped with automated and control systems, in accordance with Article 15(4) and 15(6); (d) systems in residential buildings with specific monitoring and control functionalities, in accordance with Article 15(5) and 15(6).

2.2.3. Requirements related to the installation of self-regulating devices (Article 8(1) of the EPBD)

Before amendment: Not applicable (these provisions were introduced with the amendment)

After amendment: Article 1 of Directive (EU) 2018/844 introduces new requirements related to the installation of self-regulating devices and building automation and control systems in buildings that meet specific conditions. More precisely, under the third subparagraph of Article 8(1) of the EPBD, Member States must require the installation of self-regulating devices in all new buildings and in existing buildings when heat generators are replaced, where technically and economically feasible.

2.2.4. Requirements related to the installation of building automation and control systems (Article 14(4) and 15(4) of the EPBD)

Before amendment: Not applicable (these provisions were introduced with the amendment)

After amendment: Under Article 14(4) and Article 15(4) of the EPBD, Member States must require the installation of building automation and control systems in all non-residential buildings in which the effective rated output of heating, air-conditioning, combined heating and ventilation and combined air-conditioning and ventilation is more than 290 kW. In accordance with Article 14(4) and 15(4) of the EPBD, this must be done by 31 December 2025 where technically and economically feasible (see section 2.3.4 for more guidance on the feasibility of meeting requirements).

2.3. Understanding provisions on technical building systems and their inspections, self-regulating devices and BACS

2.3.1. Technical building systems requirements and assessment and documentation of overall energy performance of technical building systems (Article 2, Article 8(1) and 8(9) of the EPBD)

2.3.1.1. Extension of the definition of a ‘technical building system’ (Article 2(3) of the EPBD)

The obligations arising from Article 8(1) and 8(9) of the EPBD apply to technical building systems as defined in Article 2(3). According to this definition, the term ‘technical building system’ means ‘technical equipment for space heating, space cooling, ventilation, domestic hot water, built-in lighting, building automation and control, on-site electricity generation or a combination thereof, including those systems using energy from renewable sources, of a building or building unit.’

A ‘technical building system’ was already defined in the EPBD before the last amendment. The EPBD updates this definition by: using a different wording for some systems, in order to clarify their scope; and extending it to include additional systems (‘technical equipment for building automation and control’ and ‘technical equipment for on-site electricity generation’).

The following table summarises the changes made to the definition under the EPBD:

Table 1

Changes to the definition of a ‘technical building system’ introduced under the EPBD

Before the amendment With the amendment Type of change heating space heating clarification of scope cooling space cooling clarification of scope ventilation ventilation no change hot water domestic hot water clarification of scope lighting built-in lighting clarification of scope (1) n/a building automation and control new technical building system n/a on-site electricity generation new technical building system

The concept of ‘on-site electricity generation’ under the EPBD should be subject to interpretation in the light of Article 15 of the Electricity Directive (2) on common rules for the internal market in electricity that regulates the status, rights and obligations of electricity customers that also own generation units, and of the notion of ‘active customers’ within the meaning of the same Directive.

2.3.1.2. New technical building systems in the EPBD (Article 2(3) and 2(3a) of the EPBD)

Technical equipment for building automation and control and technical equipment for on-site electricity generation have been added to the definition of technical building systems.

(a) ‘Building automation and control systems’ are defined in Article 2(3a) of the EPBD: ‘“building automation and control system” means a system comprising all products, software and engineering services that can support energy-efficient, economical and safe operation of technical building systems through automatic controls and by facilitating the manual management of those technical building systems’;

(b) ‘On-site electricity generation systems’ refers to systems that are designed to produce electricity, that are installed in or within confined boundaries of the premises where the building is located and that have some level of integration with the building and its electrical installation (3). Such systems include, in particular, photovoltaic panels (e.g. roof-mounted photovoltaics panels), micro combined heat and power (CHP) installations and small wind turbines.

2.3.1.3. Useful definitions: ‘heating system’ and ‘air-conditioning system’ (Article 2(15a) and 2(15) of the EPBD)

In addition to the definition of a technical building system, Article 2 of the EPBD includes definitions of a heating system and air-conditioning system (4):

(a) ‘“Heating system” means a combination of the components required to provide a form of indoor air treatment, by which the temperature is increased (5)’.

(b) ‘“Air-conditioning system” means a combination of the components required to provide a form of indoor air treatment, by which temperature is controlled or can be lowered (6)’.

2.3.1.4. When do the obligations apply? (Article 8(1) and 8(9) of the EPBD)

The technical building system provisions under Article 8(1) and 8(9) of the EPBD apply when a technical building system is installed, replaced or upgraded.

Note that the conditions that need to be met for these obligations to apply relate only to the technical building systems themselves and not to the type of building or building unit under consideration. The definition of a technical building system makes it clear that a technical building system is equipment in a building or building unit, meaning that provisions that apply to technical building systems are applicable in the buildings or building units concerned, regardless of building type or characteristics.

However, the provision on setting system requirements is obligatory only with regard to technical building systems in existing buildings. It is up to Member States whether they choose to extend the obligation to technical building systems in new buildings.

2.3.1.5. Meaning of terms (Article 8(1) and 8(9) of the EPBD)

The new provisions on the documentation of system performance (Article 8(9) of the EPBD) use some of the same concepts as the provisions on setting system requirements: ‘overall energy performance’, ‘installation’, ‘replacement’ and ‘upgrading’. The meaning of these terms remains the same in the new provisions. These terms should therefore be transposed at national level in the same way as in the provisions on setting system requirements.

The provisions on the documentation of system performance also use the term ‘altered part’, which refers to the specific part (i.e. component) of a system that is affected when the system is upgraded. This is only relevant in the context of a system upgrade, not when a system is installed or replaced.

2.3.2. Inspection of heating, air-conditioning, combined heating and ventilation and combined air-conditioning and ventilation systems (Article 14 and 15 of the EPBD)

2.3.2.1. Evolution of provisions on inspections under the EPBD (Article 14 and 15 of the EPBD)

In summary, the main changes in inspection requirements introduced under the EPBD are: (1) the different thresholds for inspections; (2) introduction of inspections of ventilation systems for combined heating (air-conditioning) and ventilation systems; (3) a greater focus on normal operating conditions; and (4) a greater role for building automation and control systems (BACS) and electronic monitoring and control systems.

As an alternative to inspections, Articles 14(3) and 15(3) of the EPBD include the possibility for Member States to opt to take alternative measures that would ensure that users receive advice. The EPBD's provisions on alternative measures are similar to those set out in the EPBD before the last amendment.

However, Member States that choose to apply alternative measures must ensure that their impact is equivalent to the impact that inspections carried out under Article 14(1) and Article 15(1) of the EPBD would have had (this includes elements such as the new thresholds, combined heating and ventilation systems, exemptions, etc.).

The provisions in Article 15 of the EPBD are almost identical to those in Article 14. The only difference is that Article 14 applies to heating systems while Article 15 applies to air-conditioning systems. Member States should therefore apply the recommendations provided for the inspection of heating systems in Article 14 to the inspection of air-conditioning systems in Article 15 (or their alternative measures if applicable). It follows that references to heating systems also apply to air-conditioning systems, and references to heat generators or boilers also apply to cooling generators or chillers. In order to avoid redundancies, the following sections mainly address the inspection of heating systems under Article 14; separate references to air-conditioning systems under Article 15 are only made where necessary.

2.3.2.2. Effective rated output (Article 2(17), 14 and 15 of the EPBD)

The definition of ‘effective rated output’ is given in Article 2(17) of the EPBD.

For heating and air-conditioning, the effective rated output means the maximum output (in kW) during operation, as specified by the system manufacturer (7):

(a) rated heat output for a heating system;

(b) rated cooling output for an air-conditioning system.

Where applicable, the threshold for the effective rated output applies to each system individually (heating, air-conditioning, combined heating and air-conditioning and ventilation).

Where combined systems are in place, the effective rated output should reflect the capacity of the combination of systems, as clarified in sections 2.3.2.3 and 2.3.2.4.

Usually, a system will comprise more than one unit that operate jointly. In this case, the effective rated output corresponds to the sum of the effective rated outputs of the individual units.

2.3.2.3. Heating and combined heating and ventilation systems (Article 14 of the EPBD)

The last amendment to the EPBD expands the scope of inspection to also include the ventilation part of combined heating and ventilation systems.

For those Member States which already have inspection regimes in place, the scope of the heating system itself should have already been defined in the context of transposition. In accordance with Article 14(1) of the EPBD, it must include all accessible parts, such as the heat generator, control system and circulation pumps.

The EPBD also requires the inspection of the ventilation in combined heating and ventilation systems. Since this is a new requirement, Member States should define the types of systems that will now be considered as combined heating and ventilation systems.

The notion of combined heating and ventilation systems should be understood as including the following categories:

(a) Type 1: ventilation systems connected to the heating system. These are systems where the ventilation system is composed of one or more air handling units (AHUs) delivering treated air to the heated space(s) and where these AHUs are connected to one or more heat generators in order to use its heat to treat the air. Examples of this type of system: boiler + AHU + terminal units (fan coils/fan convectors/radiators) or boiler + variable air volume system;

(b) Type 2: ventilation systems coordinated with the heating system. These are systems where there are one or several air handling units delivering treated air to the heated space(s). The ventilation system is connected to an independent heat source (e.g. dedicated boiler or heat pump) or uses an internal heat source (e.g. electrical resistance). Space is heated mostly by a system that uses a different heat source. Even though the heating and ventilation systems do not share heat sources, they operate in an integrated and coordinated way (e.g. in terms of schedules, flow temperatures or flow rates). Examples of this type of system: rooftop units (variable refrigerant volume or variable refrigerant flow) + AHUs;

(c) Type 3: ventilation systems independent from the heating system. These are systems where the ventilation system is completely independent from the heating both in terms of heat source and operation. Examples of this type of system: extract-only systems, supply and extract systems (without pre-heating).

Type 1 systems should be considered as combined heating and ventilation systems. This means that the requirements of the EPBD apply (recital 35 of Directive (EU) 2018/844 helps establish this). Regardless of the share of heat used by the ventilation system, both the heating and the ventilation system are fully involved in the delivery of the heat within the building. This type of system requires careful integration between ventilation and heating to adequately provide for the indoor environment in the most efficient way, particularly under typical or average operating conditions. Inspections carried out on such systems are a good opportunity to identify ways to save energy at a reduced cost (low hanging fruit).

Type 2 systems should also be considered as combined heating and ventilation systems. This is mainly because of the need to adequately integrate the operation of the heating and ventilation systems. Similarly to Type 1 systems, an inspection is a good opportunity to identify ways to save energy at a reduced implementation cost.

Type 3 systems should not be considered as combined heating and ventilation systems. The heating system and the ventilation system should be dealt with as individual and separate systems for the purposes of the EPBD.

In general, Type 1 and Type 2 systems are more common in non-residential buildings (such as offices, shopping centres, etc.), whereas Type 3 systems are more common in residential buildings.

The effective rated output of a combined heating and ventilation system should be the sum of the effective rated output of the different heat generators installed in the system (8).

The calculation of the effective rating of a system depends on the type of system. In Type 1 and Type 3 systems, the size of the heat generator is the determining factor. In Type 2 systems, the size of the heat generator should be added to the size of the separate heat generator in the ventilation system (e.g. electric heaters, solar thermal panels, etc.). This is because the heating capacity of both elements is used to compensate for the heat losses in the treated space.

The EPBD does not specify to what extent the inspection applies to the air management and treatment aspects of the system (such as ductwork, dampers or air filters). However, it would be good practice that the independent expert still includes them in the inspection, at least to a certain degree, based on the accessibility of the system and the energy-saving opportunities available. In practice, in a combined heating and ventilation system, the different parts of the system may be located together or in close proximity. Since the inspector is physically visiting the building, the added workload and cost are limited, while the opportunities to save energy are good.

2.3.2.4. Combined heating and air-conditioning and ventilation systems (Article 14 and 15 of the EPBD)

It is common for a ventilation system to be connected to both the heating and the air-conditioning system.

In Member States that have decided to implement inspections for both heating and air-conditioning systems, the ventilation could be subject to a double inspection (once with the heating system and once more with the air-conditioning system). This scenario of double inspections should be avoided to limit the burden on building and users.

Combined heating and air-conditioning and ventilation systems should preferably be inspected in a single visit by an expert qualified to inspect both. Failing that, it is recommended that the ventilation system is inspected by an expert qualified to carry out inspections of air-conditioning systems.

In Member States that have decided to implement inspections for one type of system and alternative measures for another, the risk of double inspection does not exist. However, the inspection should ensure that the heating or cooling cycle in the ventilation system do not fight each other.

To establish whether a system is over or under the 70 kW threshold, the respective heating and cooling effective rated outputs should be considered separately. For example, a combined heating and air-conditioning system with a heating rated output of 50 kW and a cooling rated output of 30 kW would be below the threshold for both heating and air-conditioning inspections. A combined system with a heating rated output of 80 kW and a cooling rated output of 30 kW would be over the threshold for heating inspections, and below the threshold for air-conditioning inspections.

The reason for this separate treatment is that the EPBD treats heating and air-conditioning systems separately (Article 14 and Article 15, respectively). There are no provisions in the EPBD that treat such systems together. Consequently, even though in practice such combined systems may well exist, according to Article 14 and 15 of the EPBD, they nonetheless must be treated separately, with their respective inspection requirements, reporting obligations, periodicity, certification of inspectors, etc.

2.3.2.5. Heat pumps and rooftop units (Article 2(18), 14 and 15 of the EPBD)

Article 2(18) of the EPBD defines heat pumps as ‘a machine, a device or installation that transfers heat from natural surroundings such as air, water or ground to buildings or industrial applications by reversing the natural flow of heat such that it flows from a lower to a higher temperature. For reversible heat pumps, it may also move heat from the building to the natural surroundings’. Heat pumps are therefore capable of acting as generators for both heating and air-conditioning systems, although in some applications they may provide only one or the other function. Because of this capacity to provide both heating and cooling, heat pumps could fall under both Article 14 and Article 15.

If a heat pump is used as the heat generator in a system that provides only heating, then the system should fall under Article 14. For example, this would be the situation of a heat pump generating heat for heating and domestic hot water.

If a heat pump is used as the heating or cooling generator in a system that provides both heating and air conditioning, then the system should fall under Article 15.

Rooftop units are a special category of heat pump and are commonly used in relatively large non-residential buildings. They work as heat pumps and have the added capability of providing heating and cooling simultaneously. They should always be considered as falling under Article 15.

2.3.2.6. Performance under typical or average operating conditions (Recital 36, Article 14(1) and 15(1) of the EPBD)

Before the amendment, recital 26 of the EPBD stated that ‘regular maintenance and inspection of heating and air-conditioning systems by qualified personnel contributes to maintaining their correct adjustment in accordance with the product specification and in that way ensures optimal performance from an environmental, safety and energy point of view’ and Article 14(1) stated that the inspection must include an assessment of the boiler size compared with the requirements of the building.

With the amendment, the EPBD refers not only to the boiler, but to the system as a whole and in particular the heat generator. Therefore, there is a greater emphasis on normal operating conditions. Recital 36 of Directive (EU) 2018/844 indicates that it is preferable for inspections to focus on real-life use conditions, with varying operating conditions that may require only a part of the nominal output capacity. This is because only a small fraction of the energy consumption in a heating system takes place under conditions approaching design conditions. Instead, the greatest proportion of energy is consumed when the system is running under ‘part load’ (i.e. when the system does not operate at full capacity). Therefore, the objective should be to ensure that the system can perform efficiently and effectively under all conditions.

Under Article 14(1) of the EPBD, the inspection of heating systems includes, where relevant, an assessment of the system's capability to optimise its performance under typical or average operating conditions. Member States must update their legislation to ensure that this performance assessment is included, where relevant, in the scope of inspections.

The operation of a heating system depends on many factors, including: outdoor conditions, building characteristics, building use and system characteristics. It is complex and possibly impractical to define typical or average operating conditions for all possible combinations.

Systems rarely operate at full capacity, operating instead at what is known as part load. It is possible to provide some rough guidelines on typical or average operating conditions based on the percentage of system output over a given period. For example, as a rule of thumb, it could be said that typical or average conditions result in a system operating between 20 % and 40 % of its design output over a period of time (e.g. a day). However, this gives an incomplete picture. Even in a typical or average day, the most efficient settings for a system may differ substantially throughout the day. As a result, it is not recommended that typical or average operating conditions are defined as a function of system load in national legislation.

It is also possible to provide some general guidelines for defining typical or average operating conditions based on outdoor temperature and specify how these differ from design conditions. For example, if design conditions were set at – 10 °C, one could define typical or average operating conditions as a function of a less demanding outdoor temperature (e.g. between 5 and 10 °C) or based on the temperature difference between inside and outside (e.g. a 60 % temperature difference between inside and outside in the design conditions). However, the same system may behave completely differently depending on the building in which it is installed, how it is used, and the weather at a specific moment. As a result, it is not recommended that typical or average operating conditions are defined or tabulated as a function of outdoor conditions (e.g. standard day) in national legislation. The same can be said for building characteristics or building usage (e.g. 80 % occupancy).

The technical details on how to carry out the assessment can be set out in the training or documentation provided to inspectors.

The need to account for the operation of systems under typical or average conditions is well understood by technical bodies and associations. There are a number of published manuals and guidelines that address performance of systems under part load (as opposed to full load or design load). It is recommended that Member States follow or use these guidelines when developing their training material (9).

2.3.2.7. Electronic monitoring and effective control functionalities in residential buildings (Article 14(5) and 15(5) of the EPBD)

The installation of electronic monitoring and effective control functionalities in residential buildings can lead to significant energy savings, improve the management of the indoor environment and be beneficial to building owners and users. This is particularly the case for large buildings, where access to system controls and system information is limited for most users.

Article 14(5) of the EPBD on electronic monitoring and control functionalities covers only residential buildings. According to this Article, it is up to Member States to decide whether they will opt to establish requirements to ensure that residential buildings are equipped with such functionalities, introducing them into their national transposition measures.

Article 14(5)(a) of the EPBD concerns the provision of continuous electronic monitoring. Systems that do this measure their own energy consumption and use it to calculate system performance, which should be made available to the system owner or manager. If system performance falls significantly or if there is a service need, the system notifies the system owner or manager. The system should operate on a continuous basis, as opposed to a periodical basis (for example every 3 months).

Article 14(5)(b) of the EPBD concerns the provision of effective control functionalities to ensure optimum energy generation, distribution, storage and use. These control functionalities should take into consideration the scenario of a multi-apartment building with a single heating system, where the individual users would only be able to control the system within the boundaries of their building unit.

Article 14(5) of the EPBD concerns the optional introduction of both functionalities in residential buildings.

Unlike Article 14(1) and Article 14(4) of the EPBD, which provide for specific thresholds that trigger the mandatory obligations to be reflected in national transposition measures, Article 14(5) has an optional character (‘may’) and therefore does not include details on thresholds for effective rated output and implicitly covers all residential buildings regardless of their size. It is recommended that Member States take into consideration the differences in system and building type when setting out requirements.

2.3.2.8. Exemption from inspections (Article 14(2), 14(4), 14(5), 15(2), 15(4), and 15(5) of the EPBD)

Before the amendment, the Directive allowed the possibility for Member States to reduce the frequency of inspections or lighten them as appropriate where electronic monitoring and control systems were in place.

The amendment to the EPBD introduces exemptions if:

(a) the technical building system is covered by an energy performance contract (or similar) or is operated by a utility or a network operator (exemption laid down in Article 14(2)); or

(b) the heating system has specific control and monitoring features as defined in Article 14(4) and (5) (exemption laid down in Article 14(6)).

(a) Technical building systems covered by energy performance contracts (or similar) (Article 14(2) and 15(2) of the EPBD)

Article 14(2) of the EPBD excludes from inspections those technical building systems that are explicitly covered by an agreed energy performance criterion or a contractual arrangement specifying an agreed level of energy performance improvement. An energy performance contract as defined in Article 2(27) of the EED fulfils these requirements.

Buildings operated by a utility or network operator that are therefore subject to performance monitoring on the system side are also exempt.

The exemptions specified in Article 14(2) of the EPBD only apply if the overall impact of the approach is equivalent to the impact resulting from the application of inspections under Article 14(1) of the EPBD.

The EPBD does not indicate how this equivalence should be established. One possibility could be to determine whether the technical building system is already undergoing a regular inspection as part of the contract or agreement, and that this is similar in nature to inspections under Article 14(1). If the technical building system undergoes such inspection, an exemption from the requirements set out in Article 14(1) could be established.

It is safe to assume that most energy performance contracts or agreements already include some level of regular inspection. However, the full extent of such inspections may not be completely in line with the requirements of the EPBD. Under normal circumstances, it would not be feasible for Member States to individually check each energy service contract to determine whether they are equivalent or not. In addition, since such contracts may be signed by two private companies, the terms and conditions may differ widely between contracts. As a result, Member States may decide to streamline and normalise such contracts.

Article 2(27) of the EED defines energy performance contracting as ‘a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract, where investments (work, supply or service) in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or other agreed energy performance criterion, such as financial savings.’

Amongst other measures, the EED also introduces provisions on energy services. Article 16 of the EED requires Member States to, where necessary, develop certification and/or accreditation schemes.

Article 18 of the EED requires Member States to support the public sector by providing model contracts for energy performance contracting. Under Article 18 of the EED, these model contracts must include at least the items which are listed in Annex XIII.

For the purposes of the equivalence requirements indicated in Article 14(2) of the EPBD, energy performance contracts signed by an accredited/certified company which adequately follows a model such as the one specified by Annex XIII to the EED could be considered to have an equivalent impact to that of inspections.

Member States would therefore need to have a publicly available list of accredited or certified companies together with publicly available model contracts.

For the purposes of record keeping, the status of a system exempt from inspections due to an energy performance contract should be recorded in the inspection database. This should include a reference to the duration of the contract and, therefore, the period for which the exemption applies.

In Member States where model contracts and a list of accredited or certified companies are not publicly available, authorities will need to check contracts individually to verify whether there is equivalence or not. The contracting parties could facilitate this by adding an annex to their contract, clearly and unequivocally indicating at least the following points listed in Annex XIII to the EED:

(a) guaranteed savings to be achieved by implementing the measures of the contract;

(b) duration and milestones of the contract terms and period of notice;

(c) reference date to establish achieved savings;

(d) obligation to fully implement the measures in the contract and documentation of all changes made during the project;

(e) clear and transparent provisions on measuring and verifying the guaranteed savings achieved, quality checks and guarantees (ideally with reference to national or EU standards).

Member States may find it useful to refer to existing standards (10), guidelines (11) and contract models (12).

(b) BACS, continuous electronic monitoring and effective control functionalities (Article 14(4), 14(5), 15(4) and 15(5) of the EPBD)

Article 14(6) of the EPBD exempts from the inspections provided for in Article 14(1) those buildings that comply with the requirements of Article 14(4) and Article 14(5).

Under Article 14(4) of the EPBD, non-residential buildings with heating or combined heating and ventilation systems with an effective rated output of over 290 kW are required to have BACS installed by 2025, wherever technically and economically feasible (13).

Non-residential buildings with systems that have an effective rated output between 70 kW and 290 kW are not affected by the requirement to have BACS installed, although Member States may decide to lower the threshold and require heating systems with smaller systems to also have BACS installed. Buildings that fall under the new requirement and have BACS installed should also be exempt from inspections.

Individual building owners may decide to install a BACS that is in compliance with the substantive requirements set out in Article 14(4) of the EPBD. In such cases, Member States may decide to exempt those buildings even if their systems do not reach the 290 kW threshold. If Member States decide to do this, they should however include it in their transposition measures for the EPBD.

Article 14(5) of the EPBD introduces the possibility for Member States to ensure that residential buildings are equipped with continuous electronic monitoring and effective control functionalities. In a similar scenario to BACS, some of these elements may already be present in the market in some form or other. However, they might not completely fulfil the requirements of Article 14(5) of the EPBD. Therefore, the definition of these systems and how they are introduced in national legislation should clearly address the differences.

As indicated in recital 39 of Directive (EU) 2018/844, Member States may choose to continue applying the inspection regimes which are already in place. Nevertheless, the exemptions applicable under Article 14(2) and Article 14(6) should still be considered.

2.3.2.9. Alternative measures

Article 14(3) of the EPBD sets out the provisions and obligations for Member States to opt to take alternative measures concerning heating systems or combined heating and cooling systems. In such cases, Member States are required to ensure that the measures have an overall impact that is equivalent to the impact that would have been achieved had an inspection scheme been in place, as set out in Article 14(1). This means that a baseline of what would be achieved under the measures set out in Article 14(1) should be calculated, in order to know whether the alternative measures will have the same impact.

There are four scenarios that reflect the different situations that Member States may encounter when applying alternative measures.

(a) Scenario 1: Member States already applied alternative measures before the amendment and decide to continue to apply these measures

The amendment to the EPBD does not substantially change the provisions on alternative measures to inspections. However, they are affected by the amendments to the provisions in the other paragraphs of Article 14. Those provisions have different effects on Article 14(3) of the EPBD, as described in the subsequent paragraphs.

The introduction of the new threshold (70 kW) in the EPBD means that Member States that opt to apply alternative measures must apply these measures in relation to the systems that are covered by the new increased threshold. This could result in a reduction in the number of systems to be covered by the alternative measures and, consequently, might result in a reduction in the energy savings achieved.

In contrast, the new requirement to inspect the ventilation part of combined heating and ventilation systems should increase the impact in terms of energy savings per inspection. Member States should consider this when setting the baseline that they should achieve with their alternative measures.

The provisions on exemptions specified in Article 14(2) of the EPBD (exemptions of systems covered by energy performance criteria) and Article 14(6) (exemptions of systems with BACS) could also result in a reduction in the number of inspections.

Under Article 14(5) of the EPBD, Member States may set out requirements related to electronic monitoring and enhanced control functionalities in residential buildings. Under Article 14(6) of the EPBD, buildings covered by systems providing those functionalities would be exempt from inspections. As a result, Member States that apply alternative measures would have to exclude this group of buildings if they decide to apply such requirements.

The range of measures that Member States may take in order to apply Article 14(3) of the EPBD has not changed with the amendment.

In view of the above, Member States that decide to continue applying alternative measures under the EPBD are under an obligation to ensure that these measures have an overall impact that is equivalent to the impact that would have been achieved had an inspection scheme been in place, as set out in the Article 14(1). This requires that the baseline of what would be achieved under an inspection regime set up under Article 14(1) be re-calculated in light of the Article 14(1), as well as in view of the above-mentioned amendments and requirements in the EPBD. Such a re-calculation will enable the Member State concerned to know whether the alternative measures that it has in place have the same impact as an inspection would or if they fall short, and to modify the measures accordingly in order to ensure equivalent impact.

Member States should include the results of this process in the report documenting equivalence that must be submitted, in accordance to Article 14(3), to the Commission before the alternative measures are applied by the Member State.

(b) Scenario 2: Following transposition, Member States that already applied alternative measures decide to change the nature of their alternative measures

This scenario reflects a situation where, following the initial transposition of Article 14(3) into national law, a Member State decides to change the scope and/or nature of the equivalent alternative measures that it has put in place. For example: a Member State applying measures A, B and C decides to change them and start applying measures C, E and D.

As explained under Scenario 1 above, Article 14(3) of the EPBD states that requires Member States to notify the Commission of their intention to take alternative measures before the alternative measures are applied. In order to do so, according to Article 14(3), a Member State must submit to the Commission an additional report that shows that the impact of the amended alternative measures is equivalent to the impact of the inspection schemes referred to in Article 14(1). The Commission will then evaluate this additional report to ensure that the Member State in question continues to achieve an equivalent level of savings.

(c) Scenario 3: Changes to the building stock affect the scope of Article 14(1) and consequently have an impact on the scope of the alternative measures

As the building stock changes and evolves, the scope of an inspection scheme as set out under Article 14(1) will change accordingly. For example, as more and more Nearly Zero-Energy Buildings (NZEBs) enter the market, it is likely that the proportion of buildings with systems over 70 kW will decrease. In addition, buildings with BACS installed (see Chapter 2.8) will be exempt from inspections. Over time, these two elements could have a significant impact on the scope of inspection schemes and therefore on any equivalent alternative measures that Member States already have in place.

Member States may for example identify such changes through a standalone study or through ongoing evaluation of the alternative measures scheme. They may also notice such changes as part of the integrated national energy and climate progress report which, according to Article 17 of Regulation (EU) 2018/1999 of the European Parliament and of the Council (14) (‘Regulation (EU) 2018/1999’), must be submitted every 2 years.

If the changes in national building stock are such that the scope or intensity of alternative measures is no longer equivalent to those of an inspection regime, then the Member State in question should adapt the alternative measures. Member States can do this either by amending the existing measures or introducing new ones.

Article 14(3) of the EPBD requires Member States to notify the Commission of their intention to take alternative measures before they apply the alternative measures. Changes in the building stock might require a Member State to amend its equivalent measures; in such cases, according to Article 14(3) of the EPBD, the Member State in question must notify the Commission of any changes before the amended alternative measures are applied.

According to Article 14(3) of the EPBD, Member States must notify the Commission by submitting a report that shows that the impact of the amended alternative measures is equivalent to the impact of the inspection schemes referred to in Article 14(1). The Commission will then evaluate this additional report to ensure that the Member State in question continues to achieve an equivalent level of savings.

(d) Scenario 4: Member States opt to take alternative measures for the first time

This scenario concerns a situation where a Member State that had so far used inspection schemes decides to switch to alternative measures for the first time.

Article 14(3) of the EPBD requires Member States to notify the Commission of their intention to use this option before they apply the alternative measures. In order to do so, according to Article 14(3) of the EPBD, Member States must submit to the Commission a report which shows that the impact of the alternative measures is equivalent to the impact of the inspection schemes referred to in Article 14(1). The Commission will then evaluate the report to ensure that the Member State in question will in fact achieve an equivalent level of savings.

(e) Submission of reports

According to Article 14(3) of the EPBD, a Member State must submit an equivalence report to the Commission before they apply any alternative measures. The Commission will evaluate the report and take appropriate action vis-à-vis the Member State.

Under Article 14(3) of the EPBD, Member States must also submit any equivalence report as part of their integrated national energy and climate plans (NECPs). Under Article 17 of Regulation (EU) 2018/1999, each Member State is to submit this at the next appropriate step of the reporting cycle (15). If the timing of the reporting cycle fits in with the timing of introducing the new or amended alternative measures, the Member State can simply submit the equivalence report as an annex to the NECP.

If the timing does not fit in the way described above, the Member State must in any case, under Article 14(3) of the EPBD, submit their report to the Commission before the measures are put in place. Member States can submit their report directly to DG ENER, although they must, under Article 17 of Regulation (EU) 2018/1999, also submit it during the next NECP cycle.

2.3.3. Requirements related to the installation of self-regulating devices and BACS (Article 8(1), 14(4) and 15(4) of the EPBD)

2.3.3.1. Building automation and control systems (BACS) (Article 2(3a), 14(4) and 15(4) of the EPBD)

Building automation and control systems (BACS) are a widely known and used concept whose meaning can vary significantly. Before addressing BACS requirements, it is important to underline what this term refers to in the specific scope of Articles 14 and 15 of the EPBD.

First of all, a BACS is a system that complies with the definition given in Article 2(3a) of the EPBD, which reads as follows (16):

‘3a. “building automation and control system” means a system comprising all products, software and engineering services that can support energy efficient, economical and safe operation of technical building systems through automatic controls and by facilitating the manual management of those technical building systems;’

In addition, a BACS within the scope of Articles 14 and 15 of the EPBD are required to have all of the capabilities listed in Articles 14(4) and 15(4) of the EPBD, which read as follows:

(a) ‘continuously monitor, log, analyse and allow for adjusting energy use;

(b) benchmark the building's energy efficiency, detect losses in efficiency of technical building systems, and inform the person responsible for the facilities or technical building management about opportunities for energy efficiency improvement; and

(c) allow communication with connected technical building systems and other appliances inside the building, and be interoperable with technical building systems across different types of proprietary technologies, devices and manufacturers.’

Building automation and control systems that are installed in non-residential buildings under the obligations of Articles 14(4) and 15(4) of the EPBD must both comply with the definition of Article 2(3a) of that Directive and include the capabilities listed above. Those capabilities should be ensured at least for the technical building systems that fall under the scope of Articles 14 and 15 of the EPBD: heating systems, air-conditioning systems, combined heating and ventilation systems, combined air-conditioning and ventilation systems.

Although automation and control systems have been common for some categories of buildings (e.g. non-residential), most buildings do not have such advanced capabilities and the ones that must comply with the above obligations will therefore require upgrades, which can be a significant undertaking.

It is therefore of particular importance that the interested parties (e.g. facility managers of buildings that must comply with the obligations) are made aware of the fact that the scope of the requirements goes beyond what such systems usually cover.

2.3.3.2. Self-regulating devices (Article 8(1) of the EPBD)

The EPBD refers to ‘self-regulating device’ without giving any specific definition of what it is. However, Article 8(1) of the EPBD clarifies that such a device must allow for the separate regulation of the temperature in each room (or, where justified, in a designated zone) of the building unit. The devices installed as a result of the implementation of these provisions should therefore:

(a) allow for the automatic adaptation of heating output depending on the indoor temperature (and optionally additional parameters (17));

(b) allow for the regulation of heating output in each room (or zone), in accordance with the heating settings of the considered room (or zone).

This means in particular that:

(a) any solution based on the manual regulation of heating output would not fulfil the requirements, even if the adjustment can be performed at room (or zone) level;

(b) any solution that allows for the automatic regulation of temperature but not at room (or zone) level, e.g. automatic regulation at dwelling-level, would not fulfil the requirements.

It is important to note that, regardless of the number or types of system(s) installed, what matters is that the systems make it possible for users to adjust temperature settings and ensure that these settings are respected (18).

The following table gives some indicative examples of devices that fulfil the requirement for different types of systems (19):

Table 2

Examples of self-regulating devices

Device Type of system Regulation capability Thermostatic radiator valve Hydronic heating system and radiators Regulation of hot water flow in emitters according to temperature setting Room thermostat Hydronic heating system and surface heating (e.g. floor heating) Regulation of hot water flow in the surface heating thanks to the room's mixing valve Fan coil unit thermostat Hydronic heating/cooling system Control of hot/cool water- and air-flow based on temperature setting Individual thermostat Standalone heaters or air-conditioners Control of heat output depending on temperature setting

(a) Heating, air conditioning, or both?

The second and third subparagraphs of Article 8(1) of the EPBD refer to technical building systems in the broad sense, i.e. as in the definition given in Article 2 of the EPBD. As regards the specific provisions on self-regulating devices (subparagraph 3), the text does not specify which type of system is concerned but does refer to regulation of temperature, which applies both to heating and systems for space cooling.

Therefore, not only heating systems but also air-conditioning systems and systems for space cooling should meet the requirements related to self-regulating devices.

In particular, the reference to ‘heated zone’ in the text should not be interpreted as implicitly restricting the requirements to only heating systems.

However, the focus of these provisions is effectively on heating, as the vast majority of air-conditioning/cooling systems are already equipped with room- or zone- level monitoring and control.

In addition, when heat generators are replaced in existing buildings, the requirement to install self-regulating devices should apply only to heating systems (20).

Also, the third subparagraph of Article 8(1) of the EPBD does not require the installation of self-regulating devices in cases where cooling generators are replaced in existing buildings. However, Member States may consider establishing such an additional requirement (21), as it would be consistent with the general objective of these provisions: to ensure adequate regulation capability and avoid wasting energy.

The following table summarises the different cases that may arise.

Table 3

Cases that should trigger the requirement to install self-regulating devices

New or existing building Type of intervention Should requirement to install self-regulating devices apply? New Installation of heating system Yes New Installation of space cooling system Yes Existing Replacement of heat generators Yes, only for heating system Existing Replacement of cool generators Up to Member State

(b) Room- or zone-level?

The principal requirement is the possibility to regulate temperature at room-level. The installation of self-regulating devices at zone-level, however, has to be justified.

A ‘room’ is to be understood as a part or division of a building enclosed by walls, floor and ceiling.

A ‘heated zone’ is to be understood as a zone of a building or building unit, located on a single floor, with homogeneous thermal parameters and corresponding temperature regulation needs (i.e. the equivalent of a ‘thermal zone’, a common concept in the scope of energy performance calculation).

Here are two examples of cases (22) where it may be justified to consider zone-level instead of room-level for the application of requirements:

(a) adjacent offices with identical indoor environment requirements in an office building;

(b) adjacent rooms/spaces that are not physically separated one from the other (e.g. open-plan kitchen and living room in an apartment).

The assessment of the most appropriate scope of the regulation (room or zone) will generally depend on the design and intended use of the specific building or building unit, and of the spaces therein. In making this assessment, the main parameter to consider will generally be whether several rooms can share the same indoor environment requirements and, therefore, could be merged into a single zone (from a temperature regulation perspective). Such cases should be well justified.

However, taking into account certain national, regional or local specificities, Member States may allow zone-level temperature regulation for some categories of buildings or building units, when there is sufficient justification for doing so. In such cases, Member States should clarify the categories of buildings or building units targeted and the national, regional or local specificities considered. They should also justify (23) allowing an upfront deviation from the principal requirement for these categories of buildings or building units.

2.3.3.3. When do the obligations apply? (Article 8(1), 14(4) and 15(4) of the EPBD)

(a) Self-regulating devices (Article 8(1) of the EPBD)

The text requires that new buildings are equipped with self-regulating devices. It requires the same for existing buildings when heat generators are being replaced.

The obligations apply to all types of buildings and all types of systems unless meeting them is not technically and economically feasible (see section (b)).

Article 2(15b) of the EPBD defines a ‘heat generator’ as follows:

‘“heat generator” means the part of a heating system that generates useful heat using one or more of the following processes: (a) the combustion of fuels in, for example, a boiler; (b) the Joule effect, taking place in the heating elements of an electric resistance heating system; (c) capturing heat from ambient air, ventilation exhaust air, or a water or ground heat source using a heat pump;’

It is important to note that this definition does not differentiate between heat generators that are distinct from heat emitters (e.g. boiler and radiators) and those that are integrated with the heat emitter in a standalone heating system (e.g. electric resistance heaters). This means that the obligations (on self-regulation) should also apply in the latter case (i.e. when a standalone heating system is replaced in an existing building).

When buildings are equipped with multiple heat generators, situations may arise where only a part of the heat generators is replaced. In such situations, the requirement to install self-regulating devices should also apply, where technically and economically feasible. In particular, if several heat generators are coupled together and serve the same space, and at least one of the heat generators is replaced, then the requirement applies. If a building is equipped with several heat generators that are independent and serve different spaces, Member States may allow the requirement to apply only to the space(s) served by the replaced heat generator(s).

Where existing buildings are connected to district heating and are not equipped with any heat generators at building level, the requirement to install self-regulating devices would normally apply when district heat generators are replaced. In some cases, this could lead to difficulties, e.g. related to ownership (24) or to economic feasibility (25). In such cases, Member States may investigate alternative paths to ensure that self-regulating devices are installed, for instance:

(a) requiring that self-regulating devices are installed when heat exchangers in buildings are replaced;

(b) drawing up and implementing a roadmap for the progressive deployment of self-regulating devices, aiming at full coverage of buildings but spreading the costs over a sufficient time period.

The installation of a new heating system in an existing building or building unit that was already equipped with a heating system (e.g. installation of a central heating system that replaces individual heating systems in a building) should trigger the requirement to install self-regulating devices, as it implies the replacement of heat generators.

The installation of a heating system in a construction that was formerly not a building within the meaning of the EPBD but which, for example subsequently, due to restoration works, becomes a building in the sense of the EPBD, should also trigger the requirement to install self-regulating devices.

(b) BACS (Article 14(4) and 15(4) of the EPBD)

The provisions on installing building automation and control systems apply to all (i.e. new and existing) non-residential buildings with heating, air-conditioning, combined heating and ventilation, combined air-conditioning and ventilation systems with an effective rated output over 290 kW.

The 290 kW threshold applies to each system individually, i.e. the obligations apply in all of the following cases, according to Article 14(4) and 15(4):

(a) when the effective rated output of the heating system is above 290 kW;

(b) when the effective rated output of the combined heating and ventilation system is above 290 kW;

(c) when the effective rated output of the air-conditioning system is above 290 kW;

(d) when the effective rated output of the combined air-conditioning and ventilation system is above 290 kW.

Additional clarifications on how to determine effective rated output are given in section 2.3.2.2.

2.3.4. Technical, economic and functional feasibility (Article 8(1), 14(4) and 15(4) of the EPBD)

The notion of ‘feasibility’ is relevant for:

(a) the application of system requirements under Article 8(1) of the EPBD, which states that system requirements must be applied ‘in so far as these are technically, economically and functionally feasible (26)’; and

(b) the installation of self-regulating devices (Article 8(1)) of the EPBD and BACS (Article 14(4) and 15(4) of the EPBD), as related requirements apply only ‘where technically and economically feasible’.

Note that it is for Member States to detail in which specific cases meeting the requirements is not feasible from a technical, economic and/or functional perspective. Member States should ensure that these cases are clearly identified, framed and justified (27).

The interpretation of technical, economic and functional feasibility should not be left to the sole judgement of interested parties (e.g. owners or system installers (28)). The conditions under which feasibility is evaluated should be defined at Member State level or, where regional conditions affect only part of a Member State's territory, at regional level. However, in the latter case, regional conditions should be defined in national transposition measures. In all cases, these conditions should be documented (e.g. as part of technical guidelines) and should apply uniformly on the national, or, where applicable, regional, territory. Finally, the non-application of system requirements should be assessed using clear procedures established and supervised by public authorities.

These procedures may differentiate between different types of buildings, in particular to address specific types for which technical, economic or functional feasibility is an issue.

One example is historical or listed buildings, which can have specific constraints that make it more difficult to apply some of the requirements. In this context, note that compliance with these requirements would not, in principle, alter the character or appearance of historical or listed buildings.

To avoid any doubt, also note that the requirements are also applicable to all categories of buildings for which the Directive allows Member States to introduce derogations in the application of minimum energy performance requirements (Article 4(2) of the EPBD).

Nevertheless, the specificities of certain buildings can be taken into account when evaluating the technical, economic and/or functional feasibility of meeting the requirements. In exceptional cases, where the evidence points to the conclusion that compliance with the requirements is technically, economically or functionally impossible for a specific building, the requirements can be disregarded. Such a conclusion can only be reached on a case-by-case basis, and Member States should not introduce systematic exemptions for any category of buildings.

The following table sets out how each type of feasibility can be interpreted and gives examples.

Table 4

Interpretation of technical, economic and functional feasibility

Type of feasibility (29) Meaning Examples Technical feasibility There is technical feasibility when the technical characteristics of the system and the building (or building unit) make it possible to apply the requirements. There is no technical feasibility when it is impossible to apply them from a technical perspective, i.e. when the system's technical characteristics prevent the requirements from being applied. Technical feasibility would be an issue if a system does not allow for the installation of the devices needed to comply with the requirements, for example if: — for requirements on heat recovery for ventilation systems, the inlet and exhaust are not located in the same areas; — for requirements on the insulation of pipes, portions of pipes are not accessible. Economic feasibility Economic feasibility relates to the costs of applying the requirements and whether: (i) these costs are proportionate with regard to the costs of the planned intervention (e.g. system upgrade); (ii) the expected benefits outweigh the costs (30) taking into account the expected lifetime of the system. Economic feasibility can e.g. be calculated based on: — a maximum ratio between the costs of applying the requirements and the costs of the planned intervention (e.g. heat generator replacement); — a maximum recovery period, taking into account monetary benefits of applying the requirements. Functional feasibility (31) It is functionally not feasible to apply requirements if these would lead to changes that would impair the operation of the system or the usage of the building (or building unit), taking into account the specific constraints (e.g. regulations) that may apply to the system and/or building. The application of system requirements may not be functionally feasible for example when: — applicable regulations (e.g. on safety) contradict the requirements; — applying the requirements would result in a significant loss of usability of the building or building unit (e.g. substantial loss of building space).

(a) Additional considerations related to the technical and economic feasibility of installing self-regulating devices

In the vast majority of cases, the question of technical and economic feasibility of installing self-regulating devices will not apply to new buildings, as the need for temperature self-regulation at room (or zone) level can be addressed in the design phase, which prevents technical barriers from appearing in subsequent steps and ensures that related costs are optimal. One straightforward example of a case where it would not be technically feasible to install self-regulating devices in a room or a zone is when this room or zone will not be heated (or cooled).

For existing buildings, technical feasibility can be an issue where it is not possible to install self-regulating devices without carrying out substantial alterations to the systems and/or to the building, which would inevitably lead to prohibitive costs (this can e.g. be the case for some types of floor heating systems in existing buildings).

Economic feasibility can be an issue for existing buildings as well, when the cost of installing the self-regulating devices is excessive as compared to the cost of replacing the heat generator. When they choose to evaluate feasibility based on costs, Member States should clarify how the costs are calculated and how they compare. The two following approaches may be considered:

(a) Comparing the upfront costs of installing self-regulating devices with the costs of replacing the heat generators and setting a threshold for the maximum ratio between the two. This approach is in line with recital 21 of Directive (EU) 2018/844, which reads as follows: ‘The installation of self-regulating devices in existing buildings for the separate regulation of the temperature in each room or, where justified, in a designated heated zone of the building unit should be considered where economically feasible, for example where the cost is less than 10 % of the total costs of the replaced heat generators.’

(b) Comparing the upfront costs of installing self-regulating devices with the expected energy cost savings resulting from their installation and setting a threshold for the maximum cost recovery period (e.g. 5 years).

While both approaches are possible, the latter option should be preferred, as in the vast majority of cases the initial costs will be recovered within a short period of time (typically 2 to 3 years).

Table 5

Possible interpretation of technical and economic feasibility for the installation self-regulating devices

Type of feasibility How it can translate Can apply to New buildings Existing buildings Technical feasibility The room (zone) has no heating/cooling. Yes (but rare) Yes (but rare) The heating system makes it impossible to install self-regulating devices. No Yes (but not frequent) Economic feasibility The upfront costs are too high compared to other costs. No Yes (but not frequent) The investment cannot be sufficiently recovered. No Yes (but rare)

(b) Additional considerations related to the technical and economic feasibility of installing BACS

In the vast majority of cases, the question of whether installing self-BACS is technically and economically feasible will not apply to new buildings, as:

(a) the building- and system design can ensure that there are no technical barriers to installing BACS;

(b) the building- and system design can ensure that the costs of installing BACS are minimised;

(c) installing BACS is already part of common practice for new large non-residential buildings.

For existing buildings, the only cases where technical feasibility can be an issue are those where the technical building systems cannot be controlled, or when making them controllable would require substantial alterations to the system and/or the building, which would inevitably lead to prohibitive costs. Such situations are limited to buildings that are equipped with old systems and should rarely arise.

The economic feasibility of installing BACS in existing buildings can also be linked to the upfront and running costs and/or to the cost recovery period required. A possible approach is to evaluate economic feasibility based on the expected energy cost savings generated by the BACS and to compare them to the upfront and running costs of installing the BACS, over the system's lifetime. This can be supplemented by an evaluation of the proportionality of the upfront costs of installing BACS in the building in question, based on such parameters as e.g. building size or energy consumption (32).

Table 6

Possible interpretation of technical and economic feasibility for the installation of BACS

Type of feasibility How it can translate Can apply to New buildings Existing buildings Technical feasibility The technical building systems cannot be controlled without substantial alterations. No Yes (but rarely) Economic feasibility The upfront costs are excessive compared to the building's characteristics. No Yes (but rarely) The investment cannot be sufficiently recovered. No Yes (but rarely)

2.4. Guidelines on transposition of provisions on technical building systems and their inspections, self-regulating devices and BACS

2.4.1. Technical building systems requirements, and assessment and documentation of overall energy performance of technical building systems (Article 2, 8(1), 14 and 15 of the EPBD)

2.4.1.1. Transposition of definitions (Article 2 of the EPBD)

Where relevant, Member States should consider giving additional clarifications to supplement the definitions of technical building systems, for instance to describe in more detail the capabilities that building automation and control systems are expected to achieve.

2.4.1.2. Establishment of system requirements (Article 8(1) of the EPBD)

(a) New technical building systems

For systems that were not considered before the amendment (building automation and control systems and on-site electricity generation), Member States will have to define and lay down system requirements at national level and ensure that these requirements cover all the aspects referred to in Article 8(1) of the EPBD: ‘overall energy performance’, ‘proper installation’, ‘appropriate dimensioning’, ‘adjustment’ and ‘control’. The following table outlines the meaning of each of these requirement areas, giving examples (for illustration purposes only) for the two types of systems that have been added to the list of technical building systems in the EPBD.

Table 7

Different system requirements areas

Type of requirement Refers to Examples BACS On-site electricity generation ‘overall energy performance’ The performance of the system as a whole (not to be confused with the performance at product or component level and the performance of the whole building) Control capabilities that have an impact on building energy performance (e.g. following EN 15232 standard (33)) System performance factor of a photovoltaic (PV) system (e.g. following EN 15316-4-6 standard (34)) ‘appropriate dimensioning’ The appropriateness of the system size or capacity given the needs and characteristics of the building under expected use conditions Determine the optimal control capabilities based on the type of building, expected usage, potential energy savings Determine the optimal size of the PV system based on electricity cost reduction, available mounting area and other constraints that could apply ‘proper installation’ The way the system should be installed in the building in order to operate properly Installation by a trained and/or certified installer Installation by a trained and/or certified installer ‘appropriate adjustment’ Testing and fine-tuning actions on the system, once installed, under real usage conditions Sequence of tests to be performed after installation to check that the system operates in accordance with its specifications Sequence of tests to be performed after installation to check that the system operates in accordance with its specifications ‘appropriate control’ Desired or required control capabilities of systems Scope of control functions (Where applicable) control of electricity feed (e.g. to grid, self-consumption, or storage)

(b) Systems already covered before the amendment

For systems already covered before the amendment, Member States could consider using the transposition of Directive (EU) 2018/844 as an opportunity to review and possibly update applicable system requirements. This review could in particular be an opportunity to check that the applicable requirements cover sufficiently the different areas listed in the EPBD and assess whether the requirements could be further developed. Feedback from the Concerted Action EPBD (35) European network suggests that: (i) the focus of applicable requirements is generally on component-level performance requirements; and (ii) the way other areas (i.e. proper installation, appropriate dimensioning, adjustment and control) are addressed can vary across the EU. Member States are therefore encouraged to take part in this review and, where relevant, draw on available good practices.

(c) Consideration of product-specific Regulations under the ecodesign Directive

Technical building systems include many products that are regulated under product-specific Regulations that implement Directive 2009/125/EC (‘ecodesign Directive’). In relation to product-specific Regulations implementing the ecodesign Directive which concern products that can be part of technical building systems as defined in Article 2(3) of the EPBD, it is worth emphasising that requirements under Article 8(1) of the EPBD apply to whole systems, as installed in buildings, and not to the performance of standalone components, which falls under the scope of product-specific Regulations implementing the ecodesign Directive. By way of example, the scope of requirements of Article 8(1) of the EPBD for a building hydronic heating system would cover the whole system (boilers, distribution and emission components), whereas the scope of ecodesign requirements for products being part of the same system would be limited to those applying to boilers.

It is generally beneficial to encourage the installation of high-performance products, however, where requirements under Article 8(1) of the EPBD would apply to products already covered by product-specific Regulations implementing the ecodesign Directive, these requirements must not go beyond the requirements set by the latter, as product-specific Regulations implementing the ecodesign Directive are directly applicable harmonisation measures.

Banning specific types of products which comply with the applicable ecodesign requirements would go beyond what the EPBD requires and allows, because products from other Member States which comply with all ecodesign requirements could not be sold on other national markets, in breach of the basic principle of free movement of goods.

However, Member States may, in certain cases, restrict the free movement of goods for environmental reasons, but only after having notified the Commission (36). This is consistent with recital 35a (37) and Article 6 (38) of the ecodesign framework.

2.4.1.3. Transposition of the provisions on assessing and documenting system performance (Article 8(1) of the EPBD)

(a) System or altered part?

Article 8(9) of the EPBD stipulates that when a technical building system is installed, replaced or upgraded, the overall performance ‘of the altered part and, where relevant, of the complete altered system’, must be assessed and documented.

This means that:

(a) in all cases, the performance of the altered part has to be assessed and documented. For example, if the heat generator of a heating system is replaced — which corresponds to a system upgrade, the performance of the new heat generator should be assessed and documented;

(b) in some cases (i.e. ‘where relevant’), the performance of the whole system must be assessed and documented. This should be required in the following three situations: (i) a new system is installed; (ii) a whole system is replaced; (iii) a part, or parts, of a system undergo a major upgrade that can significantly affect that system's overall performance.

Cases referred to in points (i) and (ii) of subparagraph (b) are straightforward: when a whole new system is installed or replaced (whether in a new building or in an existing building), there is a clear need to assess and document the performance of the whole (new) system.

In the case referred to in point iii of the subparagraph (b), a part or parts of the system are replaced or improved, thereby upgrading their energy performance. Because the part is so important, this results in an upgrade in the performance of the whole system. In this scenario, the whole system performance should be assessed. For instance:

(a) replacing a major component (e.g. the heat generator in a system) or a large number of minor components (e.g. all heat emitters in a building) should be considered in principle as a major upgrade as it has a potentially significant impact on overall performance.

(b) altering aspects of the whole system (e.g. improved insulation of pipes, replacement of pipes, replacement of all light sources, replacement of all radiators) should be considered in principle as a major upgrade.

(c) the same applies to any upgrade or alteration that affects the balance of the system.

In the following examples, the assessment obligation should not be triggered:

(a) maintenance and repairs that only aim to ensure the safe and optimal operation of the system;

(b) replacement of a minor system component (e.g. replacement of a heat emitter).

In any case, it is up to Member States (and not to building and dwelling owners) to set out in their national legislation the cases where it is relevant to assess the performance of the whole system, as opposed to those where only the assessment of the performance of the altered part is required.

In this context, Member States may differentiate between the different buildings and building units that can be affected by these provisions. This can concern for example the type of buildings (for example, residential or non-residential, individual dwelling or multi-family building). This can also possibly relate to system size, as it may be more appropriate to perform a more detailed assessment when a system is larger and more complex.

(b) Overall performance

Within the scope of the provisions on assessing and documenting system performance, assessing the overall performance (of the altered part or of the whole system) means taking the necessary steps to evaluate and express the energy performance (of the altered part or of the whole system).

The term ‘overall’ emphasises the need — where it applies — to assess the performance of the system as a whole opposed to performance at product or component level. This is less relevant when it is the performance of the altered part that is being assessed.

Member States should ensure that the scope of overall energy performance of a technical building system under Article 8(9) of the EPBD includes for assessment and documentation purposes at least the scope of overall energy performance under Article 8(1) for system requirements, and also those aspects that can affect overall energy performance under the other requirement areas (in particular control). This will ensure that compliance with system requirements is assessed and documented, that the owner is made aware of this compliance and that compliance can be proven (e.g. when the building or building unit is sold to a new owner).

Performance can be assessed in different ways; Member States should clarify which approach should be followed. These can vary depending on different factors (e.g. type of system considered, type of intervention: installation, replacement, upgrade, etc.) Upgrades that are limited in scale and impact could lead to lighter assessment approaches e.g. recording the intervention and ensuring that all relevant technical documents on the component(s) impacted are collected. More substantial interventions (typically installation or replacement) could require a more thorough assessment of the impact on the system as a whole e.g. based on the simulation of system performance when the system is designed and on verification of key system capabilities after instalment.

When determining their approach to performance assessment, Member States should ensure consistency with the requirements in Article 14 and 15 of the EPBD on inspections of heating, air-conditioning and ventilation systems, in particular in relation to the requirement to assess (where relevant) the system's capabilities under typical or average operating conditions. For instance, where guidelines or templates for the inspection of technical building systems under Articles 14 and 15 of the EPBD are available, references to these guidelines or templates may be made in the performance assessment under Article 8 of the EPBD.

(c) Documentation of system performance

Article 8(9) of the EPBD requires that the results of the assessment of the system (or of an altered part of it) performance are documented and passed on to the building owner. Member States are free to determine the form and content of this documentation, which can vary depending on the type of intervention considered. However, in this context, Member States should ensure that the documentation covers the scope of the assessment performed and can be useful for the verification of compliance with the minimum requirements on energy performance laid down pursuant to Article 8(1) of the EPBD and for energy performance certification (see next sub-section). Member States are also free to determine how the documentation is to be passed on to the building owner.

(d) Relation with building energy performance requirements and energy performance certificates

The obligations in Article 8(9) of the EPBD on documenting system (or altered part) performance aim to ensure that up-to-date information on technical building system performance is made available to building owners. Such information can be used, for instance, for energy performance certification or to verify compliance with minimum energy performance requirements (e.g. when a building undergoes a major renovation). It is up to Member States to decide whether a new energy performance certificate (EPC) will have to be issued as a result of the energy performance assessment of the technical building system (or an altered part of it).

2.4.2. Inspection of heating, air-conditioning, combined heating and ventilation, and combined air-conditioning and ventilation systems (Article 14 and 15 of the EPBD)

2.4.2.1. Inspections of heating and combined heating and ventilation systems (Article 14 of the EPBD)

(a) Systems to be inspected

The amendment to the EPBD expands the scope of systems to be inspected under Article 14(1), to include combined heating and ventilation systems.

Member States should include a definition of ‘combined heating and ventilation system’ in their national legislation.

Member States should ensure that the definition of such systems includes heat pumps and determine whether they fall within the scope of Article 14 or 15 of the EPBD (see Section 2.3.2.4).

(b) Effective rated output

Article 14(1) of the EPBD requires inspections of systems with an effective rated output over 70 kW. Before the amendment to the EPBD, the threshold laid down in its Article 14(1) for inspections of a boiler's effective output was only 20 kW.

This change affects both the threshold on output (increased from 20 kW to 70 kW) and the scope to consider when rating the output. Before the amendment, the rating made reference only to the boiler, while the rating in the EPBD now makes reference to the system as a whole. Systems with multiple heat generators (e.g. Type 1 and Type 2 systems as described in section 2.2) should also fall under the obligation laid down in Article 14(1) of the EPBD if the overall rating of multiple heat generators serving the same area or building unit exceeds 70 kW.

As indicated in recital 39 of Directive (EU) 2018/844, Member States may choose to continue applying the inspection regimes already in place, including inspections for smaller heating systems (i.e. of a threshold between 20 kW and 70 kW of effective rated output). If Member States decided to continue to operate those schemes, there would be no obligation on Member States to notify those more stringent requirements to the Commission.

(c) Performance under typical or average operating conditions

According to Article 14(1) of the EPBD, Member States must expand the scope of the inspection to include, where relevant, assessment of the system under typical or average operating conditions.

Member States should determine what changes are required in the inspection methodology. This should focus on inspection requirements and guidelines.

(d) Exemptions based on energy contracts or agreements

Member States may update their national legislation to include exemptions for buildings covered by an agreed energy performance criterion or a contractual arrangement specifying an agreed level of energy performance improvements. Member States may also include exemptions for buildings operated by a utility network or operator.

If Member States decide to allow such exemptions, they should ensure that new legislation addresses the definition of ‘energy performance criterion’ or ‘contractual arrangement specifying an agreed level of energy performance’.

If Member States decide to include the exemptions indicated under Article 14(2) of the EPBD, they must ensure that the overall impact of the approach is equivalent to those of inspections resulting from Article 14(1) of the EPBD.

To ensure this equivalence, it is recommended that Member States make use of the possibilities to implement Article 18 of the EED by creating a publicly available list of certified/accredited companies. In addition, Member States would need to produce publicly available models for energy performance contracts in line with Annex XIII to the EED.

For those Member States without a list of certified/accredited companies or without publicly available models for energy performance contracts, the equivalence should be established on a case-by-case basis. Under this scenario, the contracting parties could facilitate the process by introducing an annex in their contract clearly identifying the following points from Annex XIII to the EED:

(a) guaranteed savings to be achieved by implementing the measures of the contract;

(b) duration and milestones of the contract terms and period of notice;

(c) reference date to establish achieved savings;

(d) obligation to fully implement the measures in the contract and documentation of all changes made during the project;

(e) clear and transparent provisions on measurement and verification of the guaranteed savings achieved, quality checks and guarantees (ideally with reference to national or EU standards).

(e) Voluntary requirements for residential buildings

Article 14(5) of the EPBD refers to the option to introduce both functionalities (i.e. electronic monitoring and effective control functionalities) for residential buildings.

Member States that decide to introduce the requirements for residential buildings should include a clear definition of the meaning of continuous electronic monitoring and effective control functionalities.

Article 14(5) of the EPBD has an optional character (i.e. the term ‘may’ is used in its wording) and does not include details on thresholds in terms of effective rated output. Instead it implicitly refers to all residential buildings regardless of their size. It is recommended that Member States take into consideration the differences in types of systems or buildings when laying down the requirements.

(f) Exemptions based on BACS or continuous electronic monitoring and effective control functionalities

The EPBD exempts from inspection technical building systems that comply with Article 14(4) (building automation and control systems) and 14(5) (voluntary requirements for residential buildings).

Member States must update national legislation to introduce the definition of BACS.

Member States may decide to lower the threshold for the requirement on installing BACS indicated in Article 14(4) of the EPBD. Those buildings under the new requirement and with BACS installed should also be exempt from inspections.

Member States may decide to extend the exemption on inspections for individual building owners with systems under 290 kW that have BACS installed in compliance with Article 14(4) of the EPBD. Member States that extend this exemption should inform the Commission of this when they notify it of their transposition measures.

Member States that choose to introduce requirements for residential buildings should also consider exemptions to inspections.

(g) Alternative measures

The transposition of Article 14 of the EPBD for Member States that decide to apply alternative measures is to a large extent only affected by the changes in scope, thresholds and exemptions (see Section 2.3.2.8). Member States may continue to apply the same range of measures.

Member States already applying alternative measures must ensure, according to Article 14(3) of the EPBD, that the measures in place are equivalent to those set out in Article 14(1) of the EPBD. This may require adaptation of the alternative measures. According to Article 14(3) of the EPBD, Member States must document in a report to the Commission the equivalence of the measures and the report must be sent before any new or adapted measures are put in place.

If at some point after transposition of the EPBD, a Member State decides to modify the range or scope of existing measures or introduce new measures, it must notify the Commission of such changes. To do so, Member States must submit a report on the equivalence of the measures, before the new or adapted measures are put in place.

In accordance with Regulation (EU) 2018/1999, each Member State must submit equivalence reports required by the EPBD as part of its national energy and climate plan (NECP). The timeline for submitting NECPs and progress reports is indicated in Section 2.3.2.9.

If the timing of the NECPs is not suitable for a Member State, it may submit the equivalence report directly to the Commission. However, the Member State must ensure that the equivalence report is also included in the next step of the NECP.

2.4.2.2. Inspections of air-conditioning and combined air-conditioning and ventilation systems (Article 15 of the EPBD)

As with Article 14, the requirements of Article 15 of the EPBD must also be incorporated into national law. The obligations in Article 14 are the same as those for Article 15. The provisions in this Annex relating to Article 14 should also be applied by analogy in the context of Article 15.

Information on how to transpose Article 15 of the EPBD is provided in Sections 2.4.2.1(a) to 2.4.2.1(g) of this Annex:

(a) systems to be inspected (Section 2.4.2.1(a));

(b) effective rated output (2.4.2.1(b));

(c) performance under typical operating conditions (2.4.2.1(c));

(d) exemptions based on energy contracts or agreements (2.4.2.1(d));

(e) voluntary requirements for residential buildings (2.4.2.1(e));

(f) exemptions based on BACS or continuous electronic monitoring and effective control functionalities (2.4.2.1(f));

(g) ensuring transposition of Article 14(3) of the EPBD — alternative measures (2.4.2.1(g)).

2.4.3. Requirements on installation of self-regulating devices and BACS (Article 8(1), 14(4) and 15(4) of the EPBD)

2.4.3.1. Transposition of requirements on installation of self-regulating devices (Article 8(1) of the EPBD)

Under the obligations on installing self-regulating devices (Article 8(1) of the EPBD):

(a) every new building must be equipped with self-regulating devices by the transposition deadline. This should be ensured in the case of buildings for which permit applications are submitted after the transposition deadline.

(b) all existing buildings whose heat generators are replaced as from the date of the national transposition of these obligations must be equipped with self-regulating devices.

Those obligations apply except in infrequent/rare cases where it is not technically or economically feasible to install such devices.

Member States should advertise these requirements sufficiently in advance