VERA – Forward Visions on the European Research Area

VERA is funded by the European Union's FP7 programme for research,
technological development and demonstration under grant agreement no 290705

Energy Efficiency Plan 2011

Code: A10

Primary project information

Lead: European Commission
Additional project partners: Member States of the European Union.
Type of activity: Communication from the Commission to the European parliament, the council, the European economic and social committee and the Committee of the regions
Date conducted: 8.3.2011
Date of Publication: 08.03.2011
Duration: N/A
Summary: The Energy Efficiency Plan 2011 forms part of the European Union’s (EU) 20 % target (aimed at reducing primary energy consumption) and the 2020 Energy strategy. It aims at promoting an economy that respects the planet’s resources; implementing a low carbon system; improving the EU’s energy independence; strengthening security of energy supply. In order to meet these objectives, the European Commission proposes to act at different levels.Fostering low energy consumption in the construction sector: The Plan emphasises the necessity to implement the means for reducing final energy consumption in buildings, as this sector is responsible for almost 40 % of the final energy consumption in Europe. However, it highlights several obstacles such as “split incentives” which hinder improvements in the energy performance of buildings. In order to effectively promote low energy consumption in the construction sector, the training of architects, engineers and technicians should be adapted, for example under the “Agenda for new skills and jobs”. The Plan also states that Energy Service Companies (ESCOs) may give financial assistance to public authorities to modernise buildings and thus reduce their energy consumption.
Developing competitive European industry: The Commission wishes to encourage new production capacity and infrastructures to replace old equipment. These new infrastructures must comply with the requirements of the Directive on the emission allowance trading scheme and the Directive on industrial emissions. It is also crucial to introduce a scheme for the effective recovery of heat losses from electricity and industrial production, and to valorise cogeneration. The Commission also proposes to create instruments which allow financial value to be attributed to energy savings and link profits of utilities (suppliers and distributors) to energy efficiency and not to the volume of energy delivered. Lastly, the Plan provides for increased energy efficiency in industry, particularly in European small and medium-sized enterprises (SMEs). Regular energy audits should become mandatory.
Adapting national and European financing: In order to promote energy efficiency, the European Commission proposes to intensify energy taxation and carbon taxes by means of the following instruments:the cohesion policy;the Intelligent Energy Europe programme (2007-2013);intermediated funding; the European Energy Programme for Recovery;the Framework Programme for research, technological development and demonstration activities (2007-2013).
Making savings for the consumer: Initially, the Commission proposes to reinforce the approach of the “Ecodesign” Directive and to define strict standards for heating boilers, water heaters and computers for example. Furthermore, consumers’ understanding of the Ecolabel should be improved in order to facilitate the choice of energy-efficient products. Consumers should also have information about their own energy consumption in real time by means of “intelligent” individual meters, as recommended in the Directive establishing the internal market in electricity.Improving transport efficiency: The transport sector represents 32 % of final energy consumption. The Commission intends to define a strategy to improve the efficiency of this sector, for example by introducing traffic management in all modes of transport.Widening the scope of the national framework: Member States have implemented national plans to meet the target of reducing EU primary energy consumption by 20 %. However, the Commission suggests widening the scope of these plans to cover all stages of the energy chain and better exploit potential energy savings. Context : In November 2008, the Commission published the Communication “Energy efficiency: delivering the 20 % target” recommending a reduction of 20 %, by 2020, of primary energy consumption. It transpired that this target would be difficult to achieve if the EU did not exploit the considerable potential of energy savings in sectors such as buildings and transport. This Plan therefore proposes new overarching guidelines for energy efficiency taking account of current parameters.This summary is for information only. It is not designed to interpret or replace the reference document, which remains the only binding legal text.
Financed by: Energy Directorate-General of the European Commission.
Budget: N/A
Research area/market/industry/sector: Energy, energy policy, low-carbon economy, environmental policy, building industry, transportation, power and heat production and consumption in public and private sector,
Main report (full title): COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS, Brussels, 8.3.2011 COM(2011) 109 final

GRAND CHALLENGES

Economic Challenges: The benefits (of energy efficiency) 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 European Economic Recovery 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. Energy efficiency is an increasing business sector. At a time of increasingly scarce energy resources worldwide, expertise in energy efficient processes, technologies and services can also be turned into a new export business, giving a competitive edge to European industries.
Economic Challenges Shortlist: Economic consequences of climate change (nature disasters...); Oil shortage; Economic impacts of health effects of polluting energy production; Geo-politics and economics of energy sources;
Geopolitical Challenges: Increasing geopolitical pressure of non-renewable energy sources.
Geopolitical Challenges Shortlist: Global distribution of renewable and non-renewable energy sources.
Societal Challenges: The financing of energy efficiency as well as economic incentives and energy pricing are aimed among others at facilitate leveraging of financing for energy efficiency projects, including the multi-family and social housing sectors, in the new Member States through the Structural and Cohesion funds.
Societal Challenges Shortlist: Right to efficient and sustinable energy access.
Technical Challenges: It is important to ensure that energy efficiency is taken into account and that new capacity reflects the best available technology (BAT).To support technological innovation, the Commission will continue to foster the development, testing and deployment of new energy-efficient technologies, e.g. through the Strategic Energy Technology Plan (SET Plan).
Technical Challenges Shortlist: New developments in sustainable energy technologies and key enabling technologies;
Health Challenges: Health effects of non-renewable polluting energy production and consumption structure (e.g. fine particles of coal based energy pollution sources, cancer of accidents of nuclear power plants); Health effects of polluting transportation (fine particles...).
Health Challenges Shortlist: Health effects of non-renewable polluting energy production and consumption structure (e.g. fine particles of coal based energy pollution sources, cancer of accidents of nuclear power plants); Health effects of polluting transportation (fine particles...).
Mobility Challenges: Energy efficient mobility.
Mobility Challenges Shortlist: Smart, energy efficient and sustainable mobility.
Cross-cutting Challenges: Energy efficiency has dimensions to various grand challenges (climate change, sustainable transportation, health effects of clean air,..)
Cross-cutting Challenges Shortlist: Energy efficiency has dimensions to various grand challenges (climate change, sustainable transportation, health effects of clean air,..)

Summary of relevant aspects

Aspects of ERA Governance: 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.
Aspects of RTI Governance: To support technological innovation, the Commission will continue to foster 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 widespread market take-up. This will help the EU become more energy-efficient and open new markets for EU industries.
Other Aspects of Governance: 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.
Background information: 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 efficiency 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 resource. 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.

Scenarios

Scenarios: "High energy efficiency" is one of the scenarios of Energy Roadmap 2050 of the EC (SEC(2011) 1565). This scenario is driven by a political commitment of very high primary energy savings by 2050. It includes a very stringent implementation of the Energy Efficiency Plan and aims at reaching close to 20% energy savings by 2020. Strong energy efficiency policies are also pursued thereafter. Main policies/measures included are: 1. Additional strong minimum requirements for appliances 2. High renovation rates for existing buildings due to better/more financing and planned obligations for public buildings. 3. Passive houses standards after 2020. 4. Marked penetration of ESCOs and higher financing availability. 5. Obligation of utilities to achieve energy savings in their customers' energy use over 1.5% per year (up to 2020). 6. Strong minimum requirements for energy generation, transmission and distribution including obligation that existing energy generation installations are upgraded to the BAT every time their permit needs to be updated. 7. Full roll-out of smart grids, smart metering. 8. Significant RES highly decentralised generation.
Actions/solutions implied: The Commission has adopted an Action Plan aimed at achieving a 20 % reduction in energy consumption by 2020. The Action Plan includes measures to improve the energy performance of products, buildings and services, to improve the yield of energy production and distribution, to reduce the impact of transport on energy consumption, to facilitate financing and investments in the sector, to encourage and consolidate rational energy consumption behaviour and to step up international action on energy efficiency.
Who benefits from the actions taken?: EU Member State and all citizens worldwide.

Meta information

Time horizon: 2020
Methods: Policy process between Member Stata and EC, supported by scenario work in Energy Roadmap 2050 of the EC (SEC(2011) 1565) and respective systematic work..
Target Group: EU Member States within global context.
Objectives: On 8 March 2011, the EC adopted the Communication "Energy Efficiency Plan 2011" for saving more energy through concrete measures. The set of measures proposed aims at creating substantial benefits for households, businesses and public authorities: it should transform our daily lives and generate financial savings of up to €1000 per household every year. It should improve the EU's industrial competitiveness with a potential for the creation of up to 2 million jobs.
Countries covered: Czech Republic, France, Germany, Greece, Ireland, Italy, Lithuania, Norway, Poland, Romania, Spain, UK
ERA actors/stakeholders mentioned: Commission, member states,
Geographic scope:

Entry Details

Rapporteur: Torsti Loikkanen
Rapporteur's organization: VTT
Entry Date: August 2012