Finland

FI-4:Energy Efficiency Directive

Policy Description

The Energy Efficiency Directive was adopted by the European Parliament in 2012 and is to be transposed by Member States in 2013. The Directive sets measures that will help achieve the EU-wide 20% energy saving target by 2020 and affects the whole energy system (energy supply, transformation and distribution, energy use). The Energy Efficiency Directivet will drive industrial energy conservation through mandatory energy audits for large companies, energy supplier obligations, incentives for energy management systems implementation and cost-benefit analysis for adopting combined heat and power.

Description

The Energy Efficiency Directive (EED) was proposed by the European Commission in mid-2011 in order to bridge the gap between current policies and those required to achieve the objective of saving 20% of the EU's primary energy consumption compared to projections for 2020 [1]. The Directive drives legally binding measures to ensure Member States use energy more efficiently and set national targets for 2020. The measures resulting from the Directive are expected to result in a reduced 15% total energy savings by 2020. The remaining 5% of the energy saving target will be taken care of by the Ecodesign Directive and tougher emission standards for cars and vans.

The new Energy Efficiency Directive adopts measures that affect the whole energy system (energy supply, transformation and distribution, energy use) and have an impact on several stakeholders including governments, energy companies, energy retailers and distributors, industries and other end-users. Among the key measures of the EED are:

  • An obligation on energy suppliers to deliver an annual 1.5% energy saving among end-users (both industrial and private consumers;
  • A 3% renovation target for central government offices, first applying to "total useful floor areas" of more than 500 square meters and then to those of more than 250m2 from July 2015;
  • EU Member States must draw up roadmaps to make the entire building sector more energy efficient by 2050, and;
  • Energy audits and management plans are required for large companies, with cost-benefit analyses for the deployment of combined heat and power generation (CHP) and public procurement [2].

Measures that will have most impact on the industrial sector include:

  • Member States have to create incentives for SMEs to undergo energy audits
  • Dissemination of best practices on benefits of energy management systems for SME businesses by the Commission
  • Mandatory audits for all large companies other than SMEs (*1). 
  • Incentives for the implementation of measures recommended by audits (among others tax incentives, financial aid and advisory services) and the introduction of Energy Management Systems for large companies [3].

Concerning the mandatory audits, these have to be carried out every four years. There is a possibility to implement the obligation of auditing under voluntary agreements. Furthermore, companies that are already implementing an energy or environmental management system that is certified by an independent body according to the relevant European or international standards would be exempted from this requirement, provided the management system includes an energy audit [4].

All substantive provisions of Directives 2004/8/EC (promotion of cogeneration) and 2006/32/EC (energy end-use efficiency and energy services) will be repealed when the new EED comes into effect.

By April 2013, each EU Member State has to present its national programme for the implementation of the Energy Efficiency Directive, including an indicative national energy savings target. By June 2014, the EC must report on whether the national EE targets and implementation plans will be sufficient to reach the EU 20% EE target. By 30 April 2014, and every three years thereafter, Member States shall submit National Energy Efficiency Action Plans [5].

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2013

End Date: 2020

Policy Linkages

Complements EU Emissions Trading System (EU ETS) Effort Defining
Complements Ecodesign Directive (Finland Ecodesign Act 2008) Effort Defining
Supported By Energy Audit Programme Supporting Measure

Agencies Responsible

Ministry of the Environment

Primary Objective: Energy

Objective

This Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20% headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date

Target Group

Governments, energy companies, energy retailers and distributors, industries and other end-users.

Driver of energy consumption or emissions affected by policy: Energy efficiency

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Quantitative Target? yes

Target: By April 2013, each EU Member State has to present its indicative national energy savings target.

Time Period: 2013-2020

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Requirements on the Target Group

 

Specific requirements are not yet available. Preliminary requirements relevant to industry:

  • Mandatory audits for all large companies other than SMEs. Audits have to be carried out every four years. There is a possibility to implement the obligation of auditing under voluntary agreements. Furthermore, companies that are already implementing an energy or environmental management system that is certified by an independent body according to the relevant European or international standards would be exempted from this requirement, provided the management system includes an energy audit [4].
  • Member States would need to carry out and notify to the Commission by December 2015 a "comprehensive assessment" of the scope for applying high-efficiency cogeneration. Where the assessments identify potential for applying high-efficiency cogeneration whose benefits exceed the costs, Member States would have to take appropriate measures to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources [4].

Support by Government

 

  • Member States to create incentives for SMEs to undergo energy audits
  • Incentives for the implementation of measures recommended by audits (among others tax incentives, financial aid and advisory services)
  • Incentives for Incentives for the introduction of Energy Management Systems for large companies
  • Through the energy supplier obligations, industrial end-users may benefit from assistance by energy suppliers to identify, finance and implement energy efficiency projects

Implementation Toolbox

 

Full implementation toolbox not yet available.

Dissemination of best practices on benefits of energy management systems for SME businesses.

Complexity of Implementation

Government

Not yet available

Target Group

Not yet available

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions Estimate at EU-level: 1474 Mtoe of energy savings below baseline in 2020 to meet 20% target (includes Energy Efficiency Directive contributing to 15%, with the Ecodesign and transport measures to make up the remaining 5%) Not yet available
Estimated costs/benefits for industry Estimates at EU economy-wide level: Increased costs for investment in energy efficiency- €24 billion annually Reduced fuel expenditure - €38 billion annually Not yet available
Estimated cost for government Estimated avoided costs at the EU level: Reduced costs for investment in energy generation and distribution - €6 billion annually Not yet available
Other Benefits
General Benefits Estimates at EU economy-wide level: Increased EU GDP of € 34 billion in 2020 - Increased net employment of 400 000 in 2020

References & Footnotes

References

[1] European Parliament and of the Council (201). Energy Efficiency Directive 2012/27/EU. Available at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:315:0001:0056:EN:PDF

[2] Eva Hoos, DG Energy, Energy Efficiency Unit (2012). Presentation on the Energy Efficiency Directive. Available at http://www.geode-eu.org/uploads/Presentations%20Stockholm/Energy%20Efficiency%20Directive%20-%20Eva%20Hoos.pdf

[3] Krzysztof Gierulski, DG Energy, Energy Efficiency Unit (2012). Presentation - European Commission Nordic-Baltic Conference on RES and Energy Efficiency, Tallin, 18-19 October 2012. Available at: http://www.rohevik.ee/2012/wp-content/uploads/2012/08/Krzysztof_Gierulski_191012.pdf

[4] European Parliament (2012). Energy efficiency: measures required by the proposed directive Energy. Available at: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+IM-PRESS+20120615BKG46961+0+DOC+XML+V0//EN&language=EN#title7

[5] Press release European Commission, 4 October 2012, ‘Commissioner Oettinger welcomes final adoption of Energy Efficiency Directive’

Footnotes

(*1) Large companies which are already implementing an energy or environmental management system that is certified by an independent body according to the relevant European or international standards would be exempted from this requirement, provided the management system includes an energy audit