The European Commission has today proposed a new set of measures for increased Energy Efficiency in order to put the EU targets back on track.

1. A new Directive on Energy Efficiency

- Challenges addressed
& solutions proposed -
DG Energy
22 June 2011

2. AS DEPENDENCE ON ENERGY IMPORTS IS LIKELY TO GROW
« Business as usual » scenario based on 2009 figures
OIL GAS
in % 2005 2008 2020 2030 2005 2008 2020 2030
100 94 %
93 %
84 %
80 82 % 83 %
76 %
62 %
60 58 %
40
20
Today, Europe imports more than half of the energy it uses. If nothing
changes, our dependence on fossil fuel imports will rise by 2030.
Source: European Commission

3. AND ENERGY USE IS A MAJOR SOURCE OF EMISSIONS
Share of greenhouse gas emissions in 2008
Agriculture
10%
Industry
Processes
8% Waste
3%
Other
0%
Energy
79%
Source: EEA 2010

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

5. SO FAR THE EU IS NOT ON TRACK TO MEET ITS 20% ENERGY
SAVING TARGET BY 2020
1900
Projections from 2007 business
1842 Mtoe
1850 Projections from 2009 as
20% Energy saving objective
Primary energy consumption*, Mtoe
usual
1800
1750
1700 1678 Mtoe Status
1650
today
1600
GAP
1550
1474 Mtoe
1500 -20%
objective
1450
1400
2005 2010 2015 2020
* Gross inland consumption minus non-energy uses

6. DESPITE ITS CRUCIAL BENEFITS FOR EUROPE …
Reduce EU’s energy bill by about € 200 bn annualy in 2020
Create up to 2 million new jobs by 2020
Boost R&D & markets for EU global leadership
Competitiveness
Security
of Sustainability
supply
Reduce EU’s energy dependence
Reduce CO2 emissions
Reduce investments in energy infrastructures
Limit environmental degradation
Improve the energy trade balance

7. AND THE COMPREHENSIVE SET OF EUROPEAN POLICIES & MEASURES IN
PLACE TO ADDRESS ENERGY EFFICIENCY IN ALL ITS ASPECTS
EUROPEAN ENERGY EFFICIENCY
POLICIES & MEASURES
Energy Efficiency Plan
International Programmes
Targets & networks
cooperation
Financial
R&D
tools
Energy
efficiency
legislation
“Soft” laws Fiscal tools

8. COMBINED WITH NATIONAL INTENTIONS WILL NOT SUFFICE
in
Mtoe 400
350
EU 20%
300
250
200
150 Existing
national EE
100 targets as
of 2011
50
0

9. TO TAP THE REMAINING ECONOMIC ENERGY SAVING POTENTIALS
FOR 2020 THROUGHOUT THE SECTORS
Savings expected to be achieved with already
existing measures
Remaining saving potential to be addressed with
new measures
29%
11%
16%
2%
5%

10. A NEW IMPETUS IS NEEDED: COMMISSION PUTS FORWARD A NEW
ENERGY EFFICIENCY DIRECTIVE
Public Sectoral House- Energy
Services Industry
sector measures holds supply
Indicative General
national EE New measures
targets EED promoting EE
Monitoring &
Reporting

11. PUBLIC SECTOR TO LEAD BY EXAMPLE
Status EED proposals
• Public sector • Purchase of products, services
19% consumption makes & buildings with high energy
important share of efficiency performance
EU’s GDP
12% • Share of public
buildings in building • Annual renovation target of 3%
stock for public buildings above 250
m²
• Low average energy
performance of
• Local energy efficiency plans
existing buildings
and introduction of energy
stock, incl. public
management systems
buildings
• Cost optimal
renovation can bring
• More systematic use of Energy
up to 60% energy
Performance Contracting
savings

12. CREATING BENEFITS FOR CONSUMERS THROUGH THE PROVISION
OF TAILORED ENERGY SERVICES AND INFORMATION
Status EED proposals
• Considerable saving • National energy efficiency
potential unused in obligation scheme for utilities
the residential and
services sectors
• Obligation for individual energy
• Slow uptake of market meters, reflecting actual energy
for energy efficiency consumption & information on
services actual time of use
• Lack of awareness &
access to appropriate
information on EE • Ensure accuracy & frequency of
benefits billing based on actual
• Technological consumption
developments (e.g.
smart meters/ grids)
• Appropriate information with the
not sufficiently
bill providing comprehensive
reflecting households
account of current energy costs
interests

13. IMPROVING ENERGY EFFICIENCY IN TRANSFORMATION AND
DISTRIBUTION OF ENERGY
Status EED proposals
• Fragmented • 10-year national heat & cooling plans:
regulations & transparency, predictability &
Remaining incentives to address alignment of policies for
potential
waste across supply investments
chain
Achieved
• Waste heat recovery (CHP)
savings • CHP uses 30% less fuel obligation for new and existing
for the same amount of power & industrial plants
heat & power but level of
use in EU low: 11% vs. • Network tariffs design to encourage
21%. offering services for consumers
allowing them to save energy &
control consumption
• New generation
installations not
systematically • National annual inventories of
reflecting level of Best generation installations to monitor
Available Technologies efficiency levels

14. INCREASE AWARENESS FOR BENEFITS STEMMING FROM ENERGY
EFFICIENCY IMPROVEMENTS IN INDUSTRY
Status EED proposals
• Important share in • Member States to create
28% overall final energy incentives for SMEs to undergo
consumption energy audits
Remaining • Considerable • Dissemination of best practices on
potential
progress made but benefits of energy management
potential remaining systems for SME businesses
Achieved
savings
• Energy efficient • Mandatory audits for large
technologies and companies & incentives for the
EE best practices implementation of recommended
readily available measures and the introduction of
Energy Management Systems

15. Thank you!

For further information on energy efficiency please consult
our website:
http://ec.europa.eu/energy/efficiency/

16. POSSIBLE TIME PLANNING AFTER ADOPTION
• European Parliament to nominate a rapporteur
• First presentation & discussions in the Council Energy
July 2011 Working Group under Polish Presidency
September • Continuation of discussions in the Council Energy
- December Working Group
2011 • Discussion in the EP
• Energy Council (November)
January – • Achieving of political agreement
June 2012
June – • Finalization of the legislative text under the Cyprus
December Presidency
2012 • Entering into for force of Energy Efficiency Directive
by the end of 2012
December • Implementation of the new Directive in the MS
2013
June 2014 • Assessment of progress towards 20% saving
objective