COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Energy Efficiency Plan 2011
Date: 2011-03-08
Institutions: European Commission
Subjects: consumer, energy consumption, energy policy, energy saving, energy transport, financial aid, innovation

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EUROPEAN COMMISSION 

Brussels, 8.3.2011 
COM(2011) 109 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Energy Efficiency Plan 2011 

SEC(2011) 280 final 
SEC(2011) 277 final 
SEC(2011) 275 final 
SEC(2011) 276 final 
SEC(2011) 278 final 
SEC(2011) 279 final 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Energy Efficiency Plan 2011 

1. 

A NEW PLAN FOR ENERGY EFFICIENCY 

Energy efficiency is at the heart of the EU’s Europe 2020 Strategy for smart, sustainable and 
inclusive growth1 and of the transition to a resource efficient economy. Energy efficiency2 is 
one  of  the  most  cost  effective  ways  to  enhance  security  of  energy  supply,  and  to  reduce 
emissions of greenhouse gases and other pollutants. In many ways, energy efficiency can be 
seen  as  Europe's  biggest  energy  resource3.  This  is  why  the  Union  has  set  itself  a  target  for 
2020  of  saving  20%  of  its  primary  energy  consumption  compared  to  projections4,  and  why 
this objective was identified in the Commission’s Communication on Energy 20205 as a key 
step towards achieving our long-term energy and climate goals.  

Substantial  steps  have  been  taken  towards  this  objective  –  notably  in  the  appliances  and 
buildings  markets6.  Nonetheless,  recent  Commission  estimates  suggest  that  the  EU  is  on 
course to achieve only half of the 20% objective7. The EU needs to act now to get on track to 
achieve its target. Responding to the call of the European Council of 4 February 2011 to take 
'determined  action  to  tap  the  considerable  potential  for  higher  energy  savings  of  buildings, 
transport  and  products  and  processes'8,  the  Commission  has  therefore  developed  this 
comprehensive new Energy Efficiency Plan.  

It  will  be  pursued  consistently  with  other  policy  actions  under  the  Europe  2020  Strategy's 
Flagship Initiative for a Resource Efficient Europe9, including the 2050 roadmap for a low-
carbon  economy10,  to  ensure  policy  coherence,  assess  trade-offs  between  policy  areas  and 

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COM(2010) 2020. 
Technically, 'energy efficiency' means using less energy inputs while maintaining an equivalent level of 
economic  activity  or  service;  'energy  saving'  is  a  broader  concept  that  also  includes  consumption 
reduction through behaviour change or decreased economic activity. In practice the two are difficult to 
disentangle and – as in this Communication – the terms are often used interchangeably.  
"Negajoules"  are  the  energy  consumption  avoided  through  enhanced  energy  efficiency.  For  example, 
the 13% improvement in the energy efficiency of final consumers that took place in the EU27 between 
1996  and 2007  was equivalent  to  energy  savings of  about  160  Mtoe  over  the  period (Overall  Energy 
Efficiency Trends and Policies in the EU27 - ADEME 2009).  
7224/1/07 REV 1: Presidency Conclusions of the European Council of 8/9 March 2007. This objective 
translates  into  a  saving  of  368  million  tons  of  oil  equivalent  (Mtoe)  of  primary  energy  (gross  inland 
consumption minus non-energy uses) by 2020 compared to projected consumption in that year of 1842 
Mtoe.  This  objective  was  reconfirmed  by  the  June  2010  European  Council  (17/6/2010  Nr:  EUCO 
13/10). 
COM(2010) 639. 
These steps were taken in the framework of the 2006 Energy Efficiency Action Plan - COM(2006) 545; 
progress is assessed in the accompanying Staff working document SEC(2011) 275. 
According to the most recent Commission estimates and taking into account energy efficiency measures 
implemented up to December 2009.  
European Council Conclusions 4/2/2011 Nr: EUCO 2/11. 
COM(2011) 21. 
COM(2011) 112. 

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benefit from potential synergies. The energy efficiency measures will be implemented as part 
of the EU's wider resource efficiency goal encompassing efficient use of all natural resources 
and ensuring high standards of environmental protection.  

The combined effects of full implementation of the existing and new measures will transform 
our  daily  life  and  have  the  potential  to  generate  financial  savings  of  up  to  € 1 000  per 
household11 every year; improve Europe’s industrial competitiveness; create up to 2 million 
jobs12; and reduce annual greenhouse gas emissions by 740 million tons13.  

The  greatest  energy  saving  potential  lies  in  buildings.  The  plan  focuses  on  instruments  to 
trigger  the  renovation  process  in  public  and  private  buildings  and  to  improve  the  energy 
performance of the components and appliances used in them. It promotes the exemplary role 
of the public sector, proposing to accelerate the refurbishment rate of public buildings through 
a binding target and to introduce energy efficiency criteria in public spending. It also foresees 
obligations for utilities to enable their customers to cut their energy consumption.  

Transport  has  the  second  largest  potential.  This  will  be  addressed  by  the  upcoming  White 
Paper on Transport.  

Energy  efficiency  in  industry  will  be  tackled  through  energy  efficiency  requirements  for 
industrial  equipment,  improved  information  provision  for  SMEs  and  measures  to  introduce 
energy audits and energy management systems. Improvements to the efficiency of power and 
heat generation are also proposed, ensuring that the plan includes energy efficiency measures 
across the whole energy supply chain.  

Targets  for  energy  efficiency  are  an  effective  way  to  trigger  action  and  create  political 
momentum.  The  "Europe  2020"  process  has  created,  with  the  application  of  the  "European 
semester",  a  new  governance  context  and  additional  tools  for  the  EU  to  steer  its  efforts  on 
energy efficiency. The Commission therefore proposes a two step approach to target setting. 
As  a  first  stage,  Member  States  are  currently  setting  national  energy  efficiency  targets  and 
programmes. These indicative targets and the individual efforts of each Member State will be 
evaluated  to  assess  likely  achievement  of  the  overall  EU  target  and  the  extent  to  which  the 
individual efforts meet the common goal. The Commission will support and provide tools for 
the  Member  States  in  the  elaboration  of  their  energy  efficiency  programmes  and  closely 
monitor  their  implementation  through  its  revised  legislative  framework  and  within  the  new 
framework provided under the Europe 2020 process. In 2013, the Commission will provide an 
assessment of the results obtained and whether the programmes will, in combination, deliver 
the European 20% objective. If the 2013 review shows that the overall EU target is unlikely to 
be  achieved,  then  as  a  second  stage  the  Commission  will  propose  legally  binding  national 
targets for 2020. As in the case of renewable energy, it would then be necessary to take into 
account  the  individual  starting  points  of  Member  States,  their  economic  performance  and 
early action undertaken in the field. 

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COM(2008) 772: Communication from the Commission: Energy efficiency: delivering the 20% target  
Estimates based on data for the building sector. See SEC(2011) 277: Impact Assessment accompanying 
the Energy Efficiency Plan 
SEC(2011) 277: Impact Assessment accompanying the Energy Efficiency Plan. 

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This  plan  builds  on  the  contributions  of  the  European  Parliament,  notably  the  recent  own-
initiative report on energy efficiency14, of many stakeholders, and on experience gained with 
the 2006 Energy Efficiency Action Plan. The Commission estimates that the measures already 
in  place,  combined  with  those  newly  presented  in  this  plan,  should  ensure  the  full 
achievement  of  the  20%  target.  The  leading  principle  of  this  plan  is  to  propose  stringent 
binding measures without binding national targets. 

The Union's success in implementing this plan will depend on close cooperation between the 
EU institutions, Member States and all relevant stakeholders. The Commission counts on the 
involvement and commitment of all parties concerned in this ambitious endeavour. 

2. 

PUBLIC SECTOR: LEADING BY EXAMPLE 

Public  spending  accounts  for  17%15  of  EU  GDP.  Publicly  owned  or  occupied  buildings 
represent  about  12%  by  area  of  the  EU  building  stock16.  A  stronger  emphasis  on  energy 
efficiency  in  the  public  sector  is  crucial,  covering  public  purchasing,  the  refurbishment  of 
public buildings and the encouragement of high performance in cities and communities. The 
public sector can create new markets for energy efficient technologies, services and business 
models.  Member  States  need  to  reform  subsidies  promoting  energy  use,  for  example  by  re-
orienting them to improve energy efficiency and address energy poverty.  

•  Energy efficiency in public spending  

Steering public spending towards energy efficient products, transport modes, buildings, works 
and  services  helps  to  reduce  public  authorities'  expenditure  on  energy  bills  and  offers 
improved  value  for  money.  The  Commission's  work  on  public  procurement  for  a  better 
environment has supported this by developing procurement criteria that take energy efficiency 
into  account17.  In  addition,  public  bodies  that  are  subject  to  the  EU  public  procurement 
Directives  are  already  required  to  take  into  account  energy  efficiency  criteria  in  their 
procurement  of  vehicles18  or  office  equipment19.  From  2019  onwards,  this  will  also  be  the 
case  for  the  sector's  new  buildings,  which  will  have  to  reach  a  "nearly  zero-energy" 
performance level20. To deploy this approach on a wider scale, the Commission proposes that 
high standards of energy efficiency should systematically be applied when public authorities 
purchase goods (e.g. ICT equipment), services (e.g. energy) and works (e.g. refurbishment of 
buildings). 

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2010/2107  (INI):  European  Parliament  own  initiative  report  on  Revision  of  the  Energy  Efficiency 
Action Plan. 
See footnote 13 
Ecorys, Ecofys and BioIntelligence (2010): Study to Support the Impact Assessment for the EU Energy 
Saving Action  Plan.  The  estimate  is  based on  the  assumption of  5  m²  of public buildings per  citizen, 
translating into a total floor area of public buildings (excluding social housing) in the EU of 2.5 billion 
m². The total floor area is 21 billion m². 
COM(2008) 400: Communication from the Commission: Public procurement for a better environment. 
Directive 2009/33/EC on the Promotion of Clean and Energy Efficient Road Transport Vehicles – see 
also  the  recently  launched  Clean  Vehicle  Portal,  designed  to  help  public  authorities  implement  this 
Directive  by  providing  them,  as  well  as  final  users,  with  a  comparative,  life-cycle  cost  analysis  of 
existing vehicles (http://www.cleanvehicle.eu/). 
Under the European Energy Star Programme, which obliges central government authorities of Member 
States and EU institutions to procure equipment not less efficient than Energy Star ((EC) No 106/2008). 
Directive 2010/31/EU on the Energy Performance of Buildings. 

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•  Renovation of public buildings  

Public bodies should take the lead in bringing their buildings up to high energy performance 
levels. In order to achieve this result it would be appropriate for public authorities at least to 
double the current renovation rate. The Commission will therefore present a legal instrument21 
under  whose  provisions    public  authorities  will  be  required  to  refurbish  at  least  3%  of  their 
buildings (by floor area) each year – about twice the currently prevailing rate for the European 
building stock22. Each refurbishment should bring the building up to the level of the best 10% 
of the national building stock. And when public bodies rent or buy existing buildings, these 
should always be in the best available energy performance class.  

•  Energy performance contracting 

Energy performance contracting is an important tool in the refurbishment of buildings. Under 
this  performance-based  form  of  purchasing,  monetary  savings  from  lower  utility  bills  and 
maintenance costs that result from energy efficiency measures are used to cover part or all of 
the  measures'  investment  costs.  This  model  has  been  tried  and  proved  cost-effective  in  a 
number  of  Member  States23.  Energy  performance  contracting  is  relevant  for  triggering 
renovation  in  public  buildings  and  for  upgrading  the  energy  efficiency  level  of  public 
infrastructure  such  as  street  lighting24.  However,  the  deployment  of  energy  performance 
contracting is hampered in many Member States by ambiguities in the legal framework and 
the  lack  of  reliable  energy  consumption  data  to  establish  the  baselines  against  which 
performance  is  measured.  The  Commission  will  bring  forward  legislative  proposals  to 
overcome these problems in 2011.  

•  Implementing energy efficiency on the ground 

More  than  two  thousand  cities  have  volunteered  to  implement  sustainable  energy  measures 
through the EU-supported Covenant of Mayors25.  The  Covenant  is  a  formal  commitment  to 
reduce  signatories'  CO2  emissions  by  more  than  20%  by  2020  through  sustainable  energy 
measures  on  their  territories.  It  is  made  concrete  through  Sustainable  Energy  Action  Plans, 
developed  in  line  with  the  Covenant  methodology  and  formally  agreed  by  the  city/regional 
council. The benefits go beyond energy saving: building retrofitting, urban mobility and urban 
renovation  are  employment-intensive  economic  activities,  and  the  jobs  created  tend  to  be 
skilled, stable and not subject to delocalisation.  

The Commission will continue to support the local approach to energy efficiency through the 
Covenant  of  Mayors  and  will  seek  to  encourage  partnerships  with  more  like-minded  cities 
including those from countries outside the EU. In 2011 it will also launch a new Smart Cities 

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This legal instrument, like the other binding measures in this plan, will be subject to a thorough impact 
assessment. It will include an in-depth analysis of the proposed annual renovation rate and a verification 
of the best method for its implementing as well as monitoring mechanism. 
This  percentage  applies  at  Member  States  level.  The  current  rate  of  refurbishment  lies  between  1.2% 
and  1.5%  per  year  for  EU27.  The  upper  end  of  the range  reflects  the  retrofit  rate  of  buildings  above 
1000 m², which is the case for most public buildings and explains why a doubling of the current rate 
leads to 3%. See footnote 13 and SEC(2008) 2865. 
Including Denmark, France and Germany. 
In 2005, street lighting consumed 36 TWh of electricity.  
See http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2009/sec_2009_0324_en.pdf 
The  Covenant  procedure  was  launched  in  January  2008  and  cities  and  regions  started  to  adhere  in 
October 2008 when the text of the Covenant was finalized. See http://www.eumayors.eu/home_en.htm 

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and  Smart  Communities  initiative  to  develop  the  European  framework  for  excellence  in 
innovative  low-carbon  and  efficient  energy  solutions  at  the  municipal  level.  This  initiative 
will focus on speeding up the translation of research results into real, practical innovations in 
selected  cities  and  communities.  In  particular,  the  initiative  will  support  large  scale 
demonstration projects also including action on urban mobility, 'green' infrastructure26 and the 
use of information and communication technologies. 

3. 

PAVING THE WAY TOWARDS LOW ENERGY CONSUMING BUILDINGS  

Nearly 40%27 of final energy consumption is in houses, public and private offices, shops and 
other  buildings.  As  the  figure  shows,  in  residential  homes,  two  thirds  of  this  is  for  space 
heating.  

Figure: EU-27 households' energy consumption at home, % 

Source: Odyssee indicators, www.buildup.eu  

A large energy saving potential remains untapped. Techniques exist to cut existing buildings' 
consumption  by  half  or  three  quarters28  and  to  halve  the  energy  consumption  of  typical 
appliances.  But  the  renovation  rate  of  buildings  is  too  low,  as  is  the  uptake  of  the  most 
efficient  appliances.  The  barriers  to  energy  efficiency  buildings  need  to  be  overcome.  The 
Commission  invites  Member  States  to  establish  promotion  systems  for  private  sector 
buildings.  

•  Tackling heat use in buildings 

Addressing heat consumption in buildings will be of prime importance in the coming years. 
The Commission will further explore the range of available solutions, including possibilities 
to promote the use of district heating in the context of integrated urban planning. 

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'Green' infrastructure includes use of trees and plants to cool urban temperatures, reducing energy needs 
for cooling – and is one adaptation to climate change. It can also mitigate flood risk and water, air and 
ecosystem quality. COM(2009) 147 final p.5, COM(2011) 17 final p.8  
In 2008. See Eurostat, Energy, transport and environment indicators, 2010 edition. 
Examples of refurbishment in the EU Green Building programme show cost-effective reductions up to 
80%. 

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•  Legal obstacles  

One  important  barrier  is  "split  incentives"  for  upgrading  energy  performance.  This  term 
describes  the  common  situation  in  which  owners  and  tenants  are  each  reluctant  to  pay  for 
improving  the  energy  performance  of  a  rented  property  because  the  benefits  are  shared 
between them. Several Member States have developed legal provisions that define the amount 
which can be recovered by investors from tenants. In public and commercial buildings Energy 
Service  Companies  (ESCOs)  can  also  play  a  key  role  in  overcoming  the  problem.  The 
Commission  will  bring  forward  legislative  provisions  requiring  Member  States  to  introduce 
measures – in line with national property law - to address this problem. 

•  Training  

Energy  efficient  building  solutions  are  often  technically  demanding.  There  is  a  lack  of 
appropriate  training  for  architects,  engineers,  auditors,  craftsmen,  technicians  and  installers, 
notably  for  those  involved  in  refurbishment.  Today,  about  1.1  million  qualified  workers  are 
available, while it is estimated that 2.5 million will be needed by 201529. The Commission is 
therefore  launching  the  'BUILD  UP  Skills:  Sustainable  Building  Workforce  Initiative'  to 
support  Member  States  in  assessing  training  needs  for  the  construction  sector,  developing 
strategies  to  meet  them,  and  fostering  effective  training  schemes.  This  may  lead  to 
recommendations for the certification, qualification or training of craftsmen. The Commission 
will  also  work  with  the  Member  States  to  adapt  their  professional  and  university  training 
curricula  to  reflect  the  new  qualification  needs  (in  line  with  the  European  Qualification 
Framework).  The  Commission's  Flagship  Initiative  "An  Agenda  for  New  Skills  and  Jobs"30 
calls for skills supply to be matched with labour market needs. Transition to energy-efficient 
technologies requires new skills, environment-conscious vocational education and training in 
construction and in many other sectors.  

•  Energy Service Companies (ESCOs) as catalysts for renovation 

ESCOs  deliver  energy  efficiency  improvements,  accepting  financial  risk  by  covering  –  or 
helping  to  finance  -  upfront  investment  costs  and  refinancing  this  through  the  savings 
achieved. They can help public authorities upgrade buildings by grouping them into scalable 
projects  under  energy  performance  contracts.  Analysis  suggests  that  the  market  for  energy 
services in Europe is not developing to its full potential31. Potential clients in the private and 
public  sector  often  lack  systematic  information  on  available  ESCO  services  or  have  doubts 
about the quality of the services offered. In order to overcome these barriers and increase the 
transparency of the ESCO market, the Commission will propose that Member States provide 
market overviews, lists32 of accredited energy service providers and model contracts. In this 

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Ex-ante evaluation of the initiative on the building workforce training and qualification in the field of 
energy efficiency and renewable energy within the Intelligent Energy Europe Programme. See Ecorys, 
Ecofys and BioIntelligence (2010): Study to Support the Impact Assessment for the EU Energy Saving 
Action Plan, p. 34. 
COM(2010) 682. 
In the EU, there are an estimated 700-1040 active ESCOs, representing a market volume of EUR 6.7 to 
8.5 billion EUR. The market potential is estimated at EUR 25 billion. See Bertoldi, Marino, Rezessy, 
Boza-Kiss (2010): Energy Service Companies market in Europe – JRC. 
Such lists can be drawn up at national level and be open to any kind of energy service provider. They 
would serve only as an information tool. On the assumption that no accreditation or qualification would 
be demanded as an access criterion to feature on the list, it would be ensured that these listings would 

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context,  emphasis  will  be  placed  on  ensuring  that  when  buildings  are  renovated  that  this  is 
done  in  a  comprehensive  manner  (i.e.  deep  renovation)  to  avoid  repeated  disruption  of 
buildings. The European public private partnership expertise centre (EPEC) can also provide 
useful information.  

For  ESCOs  to  play  their  role,  they  need  access  to  financial  resources.  Innovative  financing 
with  high  leverage  both  on  national  and  European  level  would  be  an  appropriate  way  to 
catalyse  the  development  of  this  market,  for  example,  through  the  expansion  of  access  to 
project-based  financing  via  instruments  that  may  include  provision  of  liquidity  and 
guarantees, credit lines and revolving funds.  

4. 

ENERGY EFFICIENCY FOR COMPETITIVE EUROPEAN INDUSTRY 

•  Efficient generation of heat and electricity 

About  30%  of  the  EU's  primary  energy  consumption  is  consumed  by  the  energy  sector, 
mainly  for  transforming  energy  into  electricity  and  heat  and  for  distributing  it.  New 
generation capacity and infrastructure need to be built to replace ageing equipment and meet 
demand33. It is important to ensure that energy efficiency is taken into account and that new 
capacity reflects the best available technology (BAT). The Emissions Trading Scheme34 will 
encourage  this,  as  will  the  new  Industrial  Emissions  Directive35.  The  Commission  will 
monitor the extent to which these measures lead to an improvement in the efficiency of new 
generation.  Taking  into  account  the  results,  and  the  need  to  achieve  greater  efficiency  in  a 
medium  and  longer  term  perspective,  the  Commission  will  consider  introducing  a  legal 
provision requiring Member States to make the achievement of BAT levels applicable to new 
installations  a  mandatory  condition  for  the  authorisation  of  new  capacity  and  to  ensure  that 
existing  installations  are  upgraded  to  BAT  levels  applicable  to  existing  capacity  as  part  of 
their permit update.  

Exploring ways to tackle the effective recovery of heat losses from electricity and industrial 
production processes will be another important task for the Commission, since unused energy 
saving  potential  is  far  from  being  exhausted  and  could  cover  a  significant  part  of  Europe’s 
thermal  energy  needs  e.g.  for  heating  and  cooling,  boosting  local  resources  and  displacing 
imported  energy  in  many  instances.  Harnessing  this  potential  requires  an  integrated,  cross-
cutting  approach  that  takes  into  account  current  thermal  energy  needs  e.g.  in  buildings  and 
businesses,  the  role  of  local  and  regional  authorities  in  planning  and  implementing  energy 
efficient  and  environmental  friendly  strategies,  including  the  development  of  efficient 
infrastructures,  and  synergies  with  commercial  solutions  for  cheap,  clean  and  convenient 
thermal supply services using recovered waste heat. 

Greater  use  of  (high-efficiency)  cogeneration,  including  from  municipal  waste  treatment 
plants,  and  district  heating  and  cooling  can  make  an  important  contribution  to  energy 
efficiency. The Commission will therefore propose that, where there is a sufficient potential 
demand,  for  example  where  there  is  an  appropriate  concentration  of  buildings  or  industry 

not produce adverse effects such as foreclosing the market for services. The voluntary display of quality 
seals and references would be an additional way of increasing trust in the quality of the services offered. 
COM(2010) 677/4: Communication from the Commission: Energy Infrastructure priorities for 2020 and 
beyond - A Blueprint for an integrated European energy network. 
Directive 2003/87/EC as amended. 
Directive 2010/75/EU. 

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nearby,  authorisation  for  new  thermal  power  generation  should  be  conditional  on  its  being 
combined with systems allowing the heat to be used – “combined heat and power” (CHP)36 – 
and that district heating systems are combined with electricity generation wherever possible. 
To improve the energy-saving performance of CHP systems, the Commission also proposes 
that electricity distribution system operators provide priority access for electricity from CHP, 
and  will  propose  reinforcing  the  obligations  on  transmission  system  operators  concerning 
access and dispatching of this electricity. 

•  Energy efficiency in electricity and gas networks 

The  Commission  will  strengthen  the  basis  for  national  grid  regulators  to  take  energy 
efficiency into account in their decisions and in monitoring the management and operation of 
gas  and  electricity  grids  and  markets,  including  reflecting  energy  efficiency  priorities  in 
network regulations and tariffs, network and technical codes. 

•  Energy efficiency as a business sector 

A  prerequisite  for  an  energy  efficient  Europe  is  creating  value  for  energy  savings  through 
market  mechanisms.  Instruments  are  therefore  needed  to  put  a  financial  value  on  energy 
savings  and  link  the  profits  of  utilities  (suppliers  or  distributors)  to  energy  efficiency  rather 
than  the  volume  of  energy  delivered.  Some  Member  States37  have  already  established  a 
system  of  national  energy  saving  obligations  for  the  energy  industry  with  good  results: 
savings  of  up  to  6%  of  final  energy  consumption  have  been  achieved38.  In  systems  of  this 
type,  utilities  are  required  to  deliver  a  fixed  amount  of  energy  savings  by  implementing 
energy  efficiency  improvements  among  their  customers  (such  as  households,  companies, 
municipalities  or  housing  associations)  or  in  other  sectors  such  as  energy  generation  or 
transport. As an alternative to delivering the savings themselves, some systems allow utilities 
to  buy  the  energy  savings  from  actors  such  as  energy  service  companies  (ESCOs).  Energy 
saving  obligations  stimulate  suppliers  to  change  their  business  model  from  retailing  energy 
commodities towards offering energy services.  

The  Commission  will  propose  that  all  Member  States  establish  a  national  energy  saving 
obligation scheme appropriate for their circumstances. The impact could - depending on the 
scope  and  stringency  of  the  requirement  -  yield  savings  of  up  to  100  million  tons  of  oil 
equivalent (Mtoe) in 202039. 

•  Increasing the competitiveness of European manufacturing industry 

About  20%40  of  the  EU's  primary  energy  consumption  is  accounted  for  by  industry.  This  is 
the sector where progress in energy efficiency has been greatest (with a 30% improvement in 
energy intensity over 20 years). Nevertheless, worthwhile energy saving opportunities remain. 
The  Emissions  Trading  Scheme  and  the  Energy  Taxation  Directive  (including  its  planned 
reform)41 should encourage take-up of some of these opportunities. In addition, obstacles like 

36 

37 
38 

39 
40 
41 

Directive 2004/8/EC  on  the promotion of  cogeneration  based on  a useful  heat demand  in  the  internal 
energy market and amending Directive 92/42/EEC. 
This is for example the case in the UK, Italy, France and Denmark, as well as the region of Flanders. 
Ecorys, Ecofys and BioIntelligence (2010): Study to Support the Impact Assessment for the EU Energy 
Saving Action Plan.  
SEC(2011) 277: Impact Assessment accompanying the Energy Efficiency Plan. 
In 2008. See Eurostat, Energy, transport and environment indicators, 2010 edition. 
Directive 2003/96/EC. 

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the  lack  of  information,  lack  of  access  to  capital,  and  short  term  pressures  of  the  business 
environment should also be addressed. Overcoming these obstacles would reduce energy bills 
and improve competitiveness. At a time  of  increasingly scarce energy resources worldwide, 
expertise in energy efficient processes, technologies42 and services can also be turned into a 
new export business, giving a competitive edge to European industries.  

The  obstacles  to  investment  in  energy  efficient  technologies  are  most  acute  for  small  and 
medium  sized  enterprises  (SMEs)43.  The  Commission  will  therefore  encourage  Member 
States to provide them with information (for example about legislative requirements, criteria 
for  subsidies  to  upgrade  machinery,  availability  of  training  on  energy  management  and  of 
energy experts) and develop appropriate incentives44 (such as tax rebates, financing for energy 
efficiency investments, or funding for energy audits). In association with the relevant industry 
associations, the Commission will support the exchange of best practices in energy efficiency 
and projects aimed at building capacity on energy management in micro and small companies. 
It  will  support  the  development  of  tools  that  SMEs  can  use  to  benchmark  their  energy  use 
against comparable companies. 

For large companies the Commission will propose to make regular energy audits mandatory. 
It will recommend that Member States should develop incentives for companies to introduce 
an energy management system (for example as set out in standard EN 16001) as a systematic 
framework for the rational use of energy45.  

Building on the success of ecodesign measures as an effective tool to stimulate innovation in 
energy efficient European technologies, the Commission is investigating whether and which 
energy  performance  (ecodesign)  requirements  would  be  suitable  for  standard  industrial 
equipment  such  as  industrial  motors,  large  pumps,  compressed  air,  drying,  melting,  casting, 
distillation and furnaces.  

The Commission will continue to work with industry – including energy intensive industries46 
and the ICT industry47, which has the potential to be a key enabler in achieving improvements 
in  other  sectors  –  to  encourage  voluntary  agreements  on  implementing  energy  efficiency 
processes and systems. These should be based on clear targets, methodologies, measurement 
and  monitoring  schemes,  notably  via  ecodesign  requirements,  and  can  include  the 
dissemination of good practice.  

•  Research and innovation as catalyst for cost-effective energy efficient technologies in 

industry  

42 
43 
44 

45 

46 

47 

See ELECTRA Communication COM(2009) 594. 
Eurochambres (2010): Energy efficiency in SMEs: Success Factors and Obstacles. 
The  Commission  reminds  that  insofar  as  support  measures  involve  State  aid,  Member  States  have  to 
respect  State  aid  rules  as  specified  in  Articles  107  and  108  of  the  Treaty  on  the  Functioning  of  the 
European Union.  
Where appropriate, including energy management as an integral part of an overarching environmental 
management system. 
The approach will focus on (1) products, (2) power driven systems (e.g. electrical motor, variable speed 
drive, control equipment and pumps) and (3) installations (e.g. installation audits). 
The ICT sector has been invited to develop and adopt common methodologies for measuring its energy 
performance  and  GHG  emissions,  and  a  harmonised  way  to  quantify  its  enabling  potential  (COM 
(2010) 245, A Digital Agenda for Europe). 

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innovation, 

technological 

To  support 
the 
development,  testing  and  deployment  of  new  energy-efficient  technologies,  e.g.  through 
the Strategic Energy Technology Plan48 (SET Plan), in order reduce the costs and improve the 
performance of energy efficient technologies, generating new solutions and facilitating wide-
spread  market  take-up.  This  will  help  the  EU  become  more  energy-efficient  and  open  new 
markets for EU industries.  

the  Commission  will  continue 

to  foster 

5. 

APPROPRIATE NATIONAL AND EUROPEAN FINANCIAL SUPPORT  

Many energy  efficiency investments pay for themselves quickly, but  are not realised due to 
market  and  regulatory  barriers.  Market  incentives  and  price  signals  therefore  need  to  be 
intensified  through  energy  and  carbon  taxes  and  through  national  energy  saving  obligations 
for  utilities  (see  chapter  4).  This  should  be  complemented  by  mechanisms  to  improve  the 
availability  of  suitable  financing  products.  Since  investment  costs  represent  a  significant 
financial  barrier  to  the  use  of  energy  efficient  technologies,  availability  of  funding  plays  an 
important role in accelerating investment.  

Complementing  national  funding  programmes,  the  EU  is  currently  able  to  support  energy 
efficiency through:  

–  Cohesion  Policy:  For  the  period  2007-2013,  the  planned  support  from  Cohesion  Policy 
Funds for investments related to energy efficiency, co-generation and energy management 
is  approximately  € 4.4  billion.  Two  key  amendments 49  have  been  made  to  better  reflect 
energy  efficiency  needs.  Whereas  regional  policy  has  traditionally  financed  energy 
efficiency investments only in public and commercial buildings, it is now possible to use 
these  funds  in  the  residential  sector  in  all  Member  States;  and  the  use  of  financial 
engineering  instruments  has  been  extended  to  energy  efficiency  in  buildings.  In 
cooperation with the responsible programme managers, the Commission will seek ways to 
improve the use of the resources available for energy efficiency improvements. 

–  The Intelligent Energy Europe Programme (2007-2013): this € 730 million programme 
supports  projects  to  overcome  market  failures,  including  activities  to  accelerate  the 
renovation of the building stock. One of its newest tools is the ELENA (European Local 
Energy  Assistance)  facility.  This  provides  grants  to  local  and  regional  authorities  for  the 
technical  assistance  costs  of  developing  bankable  sustainable  energy  investments.  The 
original  facility  was  implemented  by  the  European  Investment  Bank;  two  additional 
facilities are foreseen in 201150. In just over a year of operation, ten ELENA projects have 
been  approved  which  will  provide  approximately  € 18  million  in  grants  to  final 
beneficiaries with a view to mobilizing about € 1.5 billion in investments over their three 
year lifetimes.  

–  Intermediated  finance:  Credit  lines  from  International  Financial  Institutions  (IFI)  and 
other  public  sector  banks  have  provided  an  important  source  of  finance  for  energy 
efficiency projects through intermediated finance through local banks. Use is often made 

48 
49 
50 

http://ec.europa.eu/energy/technology/set_plan/set_plan_en.htm  
Regulations (EC) No 397/2009 and (EU) No 832/2010. 
To  be  implemented  by  the  Kreditanstalt  für  Wiederaufbau  (KfW)  and  the  Council  of  Europe 
Development Bank (CEB). 

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of EU funding to provide technical assistance, either to the participating bank for capacity 
building, or for measures such as energy audits for final beneficiaries. 

–  The  European  Economic  Recovery  Programme:  This  programme  is  funding  the 
"Energy-efficient  Buildings"  public  private  partnership,  providing  € 1  billion  research 
methods  and  technologies  to  reduce  the  energy  consumption  of  new  and  renovated 
buildings. In addition, the Commission is currently working with the European Investment 
Bank to set up a dedicated investment fund using unspent funds from this programme to 
support  energy  efficiency  and  renewable  energy  projects.  This  will  be  launched  later  in 
2011.  

–  The  Framework  Programme 

technological  development  and 
for  research, 
demonstration  (2007-2013): this programme supports research and innovation in energy 
efficiency as a cross-cutting measure right across the Cooperation Programme, resulting so 
far in more than 200 projects being financed with an EU contribution of €1 billion.  

In  the  process  of  preparing  the  next  multi-annual  financial  framework,  the  Commission  is 
examining the results achieved by EU support programmes and their European added value. It 
will  analyse  the  scope  for  improvement  of  existing  EU  financial  mechanisms  as  well  as 
further options to trigger investments in energy efficiency at the scale necessary to attain the 
2020 EU energy and climate objectives. 

6. 

SAVINGS FOR CONSUMERS  

Improvements to the energy performance of devices used by consumers – such as appliances 
and  smart  meters  –  should  play  a  greater  role  in  monitoring  or  optimizing  their  energy 
consumption, allowing for possible cost savings. To this end the Commission will ensure that 
consumer  interests  are  properly  taken  into  account  in  technical  work  on  labelling,  energy 
saving  information,  metering  and  the  use  of  ICT.  The  Commission  will  therefore  research 
consumer  behaviour  and  purchasing  attitudes  and  pre-test  alternative  policy  solutions  on 
consumers to identify those which are likely to bring about desired behavioural change. It will 
also consult consumer organisations at the early stage of the process. Consumers need clear, 
precise  and  up  to  date  information  on  their  energy  consumption  –  something  that  is  rarely 
available  today.  For  example,  only  47%  of  consumers  are  currently  aware  of  how  much 
energy they consume51. They also need trustworthy advice on the costs and benefits of energy 
efficiency  investments.  The  Commission  will  address  all  of  this  in  revising  the  legislative 
framework for energy efficiency policy. 

•  Promoting energy and resource efficient appliances  

Improving  the  performance  of  buildings,  and  the  products  used  to  heat,  cool,  ventilate  and 
light  them,  is  one  of  the  most  tangible  ways  in  which  energy  efficiency  policy  can  benefit 
household budgets. Already-introduced ecodesign efficiency standards and energy labels for 
household appliances52 have delivered substantial energy savings for consumers and business 
opportunities for European manufacturers of high quality goods. Under the current ecodesign 

51 
52 

SEC(2010) 1409: the functioning of retail electricity markets for consumers in the European Union. 
Fridges,  freezers,  televisions,  dishwashers,  washing  machines,  fans,  some  types  of  lighting,  and 
decoders for digital television. 

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working  plan53,  the  Commission  will  continue  this  approach,  setting  stricter  consumption 
standards for heating boilers, water heaters, computers, air conditioners, tumble driers, pumps, 
vacuum cleaners and further types of lighting. It will also bring forward a new working plan 
for 2012-2014. 

Energy labels are an essential accompaniment to this approach. They are most effective when 
taking  the  way  consumers  choose  as  their  starting  point.  The  Commission  will  launch  a 
survey  on  consumer  understanding  of  energy  labels.  This  will  help  to  better  accommodate 
consumer  interests  (e.g.  reflecting  on  the  perception  of different labels  and the  influence  of 
marketing)  in  forthcoming  energy  labelling  measures  and  also  support  the  dialogue  with 
consumer organisations. 

Today  more  than  40%  of  windows  in  the  EU  are  still  single-glazing,  and  another  40%  are 
early uncoated double-glazing54. The Commission will work to facilitate the market uptake of 
more  efficient  building  components,  for  example  by  applying  the  eco-design  or  labelling 
frameworks to windows. 

In its future work on ecodesign and energy labelling the Commission will examine the option, 
where  relevant,  of  covering  systems  as  well  as  individual  products.  In  order  to  enforce  the 
effectiveness  of  these  measures,  the  Commission  will  continue  to  analyse  the  life-cycle 
energy  impact  of  products.  It  will  strengthen  market  surveillance  to  ensure  that  product 
requirements  are  properly  implemented  and  will  support  measures  to  help  consumers, 
installers and retailers make best use of energy labels.  

•  Empowering consumers with new technology 

Under current EU legislation55, final consumers should already be informed frequently about 
their  energy  consumption  at  the  time  of  use  to  enable  them  to  regulate  their  consumption 
through  individual  meters  for  all  important  types  of  energy:  electricity,  gas,  heating  and 
cooling and hot water. They should also be provided with information through their bills and 
contracts  about  prices and  energy  costs.  This  should  be  presented  in  ways  which  help  them 
improve  their  energy  efficiency,  for  instance  relating  their  consumption  to  benchmarks  or 
available energy efficient solutions.  

In  practice,  these  consumer  rights  still  need  to  be  properly  implemented.  The  information 
provided must be better targeted to consumer needs. The Commission will work with Member 
States  to  ensure  the  full  implementation  of  these  as  well  as  other  provisions  of  European 
energy efficiency legislation. 

In future years the deployment of a European "smart grid" will bring about a step change in 
the  scope  for  gathering  and  communicating  information  about  energy  supply  and 
consumption.  This  information  will  allow  consumers  to  save  energy.  Member  States  are 
obliged to roll out smart electricity meters for at least 80% of their final consumers by 2020 
provided this is supported by a favourable national cost-benefit analysis56. It is important to 
ensure that intelligence can also develop in other networks, such as heat, cooling and gas57, 

53 
54 
55 
56 
57 

COM(2008) 660: Establishment of a working plan for 2009-2011 under the Ecodesign Directive. 
Estimates prepared by TNO for Glass for Europe . 
Directives 2006/32/EC, 2009/72/EC and 2009/73/EC. 
Directive 2009/72/EC concerning common rules for the internal market in electricity. 
According  to  Directive  2009/73/EC  concerning  common  rules  for  the  internal  market  in  natural  gas 
retail markets, smart metering should be achieved within a reasonable period of time. 

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and  that  these  intelligent  networks  all  contribute  to  build  a  well-functioning,  interoperable 
market for energy efficiency services. Smart grids and smart meters will serve as a backbone 
for smart appliances, adding to the energy savings obtained by buying more energy efficient 
appliances.  New  services  will  emerge  around  the  development  of  smart  grids,  permitting 
ESCOs  and  ICT  providers  to  offer  services  to  consumers  for  tracking  their  energy 
consumption at frequent intervals (through channels like the internet  or mobile phones) and 
making it possible for energy bills to indicate consumption for individual appliances. Beyond 
the  benefits  for  household  consumers,  the  availability  of  exact  consumption  data  through 
smart  meters  will  stimulate  the  demand  for  energy  services  by  companies  and  public 
authorities, allowing ESCOs to offer credible energy performance contracts to deliver reduced 
energy  consumption.  Smart  grids,  meters  and  appliances  will  allow  consumers  to  choose  to 
permit their appliances to be activated at  moments  when off peak cheaper  energy supply or 
abundant wind and solar power are available – in exchange for financial incentives. Finally, 
they will offer consumers the convenience and energy saving potential of turning appliances 
on and off remotely.  

Delivering  on  this  potential  requires  appropriate  standards  for  meters  and  appliances,  and 
obligations for suppliers to provide consumers with appropriate information (e.g. clear billing) 
about their energy consumption including access to advice on how to make their consumption 
less energy intensive and thus reduce their costs. To  this end, the Commission will propose 
adequate  measures  to  ensure  that  technological  innovation,  including  the  roll-out  of  smart 
grids  and  smart  meters  fulfils  this  function.  These  measures  will  include  minimum 
requirements on the content and format of information provision and services. 

Further, the Commission needs to ensure that energy labels (energy performance certificates) 
and  standards  for  buildings  and  appliances  reflect,  where  appropriate,  the  incorporation  of 
technology  that  makes  appliances  and  buildings  “smart  grid  ready”  and  capable  of  being 
seamlessly integrated into the smart grid and smart meter infrastructure. Appliances such as 
fridges, freezers and heat pumps could be the first to be tackled.  

7. 

TRANSPORT  

As well as the sectors covered in detail in this plan, transport – which accounts for 32%58 of 
final energy consumption – is a key area for energy savings. It is the fastest growing sector in 
terms of energy use, with the strongest reliance on fossil fuel. The upcoming White Paper on 
Transport  will  define  a  strategy  for  improving  the  efficiency  of  the  transport  sector  that 
includes the introduction of advanced traffic management systems in all modes; infrastructure 
investment  and  the  creation  of  a  Single  European  Transport  Area  to  promote  multimodal 
transport; smart pricing; and efficiency standards for all vehicles across all modes as well as 
other measures to promote vehicle innovation.  

8. 

A FRAMEWORK FOR NATIONAL EFFORTS 

Member  States  have  the  key  role  to  play  in  introducing  the  energy  efficiency  policies  and 
measures needed to achieve the 20% target. So far, National Energy Efficiency Action Plans 
(NEEAPs),  introduced  under  the  Energy  Services  Directive,  have  provided  the  national 

58 

In 2008. See Eurostat, Energy, transport and environment indicators, 2010 edition. 

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framework for energy efficiency policy development in end-use sectors59. In the light of this 
new  Energy  Efficiency  Plan  covering  all  sectors  from  generation  to  end-use,  it  becomes 
evident  that  the  scope  of  the  national  framework  needs  to  be  expanded  to  cover  the  whole 
energy chain, thus tapping into more energy saving potentials60.  

At the same time, the launch of the first European Semester of ex-ante policy co-ordination in 
the  framework  of  the  Europe  2020  strategy  opens  new  opportunities  for  the  Commission  to 
follow and assess Member States' annual progress in energy efficiency. 

As  it  is  essential  to  monitor  national  achievements  to  assess  progress  made  towards  the 
European  20%  target,  the  Commission  will  in  the  coming  months  analyse  what  the  most 
appropriate monitoring framework should be. 

9. 

CONCLUSION 

The measures proposed in this Plan aim at closing the gap in reaching the EU's 20% energy 
saving target as well as at helping to realise our 2050 vision of a resource efficient and low 
carbon economy, as well as aiming at increased energy independence and security of supply. 
Fully implementing this plan should deliver important energy savings: it is estimated that the 
actions  of  the  public  sector  and  the  new  minimum  efficiency  requirements  for  appliances 
should  yield  savings  of  up  to  100  Mtoe  and  that  comparable  savings  can  also  be  expected 
from  measures  in  the  transport  sector  and  from  energy  savings  for  consumers  from  their 
energy suppliers61. 

The  binding  measures  put  forward  in  this  plan  will  be  implemented  through  appropriate 
legislative instruments, including a legislative proposal encompassing revision of the existing 
Energy Services and Combined Heat and Power Directives62. The next steps during 2011 will 
be  the  adoption  of  that  proposal63;  the  adoption  of  new  ecodesign  and  energy  labelling 
measures; the launching of the Smart Cities and Smart Communities initiative; and proposals 
on financing tools which will be brought forward during the budgetary discussions of 2011.  

The Commission calls on the EU institutions, Member States and all relevant stakeholders to 
endorse  this  new  Energy  Efficiency  Plan,  to  actively  engage  in  discussion  concerning 
implementing measures and to cooperate closely in its implementation.  

59 

60 

61 
62 
63 

See accompanying staff working document SEC(2011) 276: National Energy Efficiency Action Plans 
(NEEAPs): update on implementation. 
The existing energy efficiency acquis is extended to the EU's neighbours in South-Eastern and Eastern 
Europe via the Energy Community treaty, ECT (or is in the process of this in the case of more recent 
acquis). The framework for promoting energy efficiency, including the 20% target, therefore applies to 
partners  with  a  vocation  to  join  the  EU.  New  EU  energy  efficiency  initiatives will  automatically  be 
added to the ECT acquis. 
These are measure-specific energy savings estimates, subject to certain overlaps. 
Directives 2006/32/EC and 2004/8/EC. 
This proposal will include the measures in this plan dealing with public purchasing of goods, services 
and works; renovation of public buildings; energy performance contracting; split incentives to upgrade 
energy  performance;  energy  service  companies;  efficiency  of  energy  generation;  grid  access  for 
electricity  from  combined  heat  and  power;  energy  saving  obligations;  energy  audits;  information 
services for energy consumers; and energy efficiency in grid regulation. 

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