How do EEOS and alternative measures relate to each other?

Member States fulfil their energy savings targets of Art. 7 by either introducing energy efficiency obligation schemes (EEOS), alternative policy measures, or a combination of both. So far, about 18 Member States introduced energy efficiency obligations, of which 14 Member States combine obligation schemes with alternative policy measures such as support programs or voluntary agreements. Ten Member States solely implement alternative policy measures to achieve the Article 7 target.

Energy efficiency obligation (EEO)

The Member State sets an energy savings target and allocates this to the obligated parties (such as electricity, gas, district heating and fuel suppliers). The obligated parties achieve their individual energy savings target by implementing energy saving measures. For the verifiable energy savings achieved the parties receive a certificate. An obligated party can either implement energy savings measures directly at the end customer, commission the implementation to third parties (such as ESCOs), or can be credited savings by trading certificates if a trading system has been put in place in the respective Member State. Energy saving obligations must provide individual proof that planned savings measures are being implemented with their customers. Failure to achieve the savings target can lead to sanctions defined by the Member State. The design of the EEOs varies significantly among the Member States.

The links provide case studies of the Danish EEO and the Italian EEO.

Alternative policy measures

According to the European Parliament 2017 data, there are 477 different measures in use. Member States put in place several types of alternative measures such as voluntary agreements (e.g. Long-Term Agreements with the trade and services sector (NL)) or financial incentives (VAT at reduced rate for renovation work (FR), KfW’s ‘CO2 Building Renovation Programme’ and the KfW’s energy efficiency programmes for the promotion of corporate investments in energy-efficient technologies (DE), Programme for the renovation (modernisation) of multi-apartment buildings (LT)). 

The measurement, control and verification shall regularly be carried out independently of the participating parties. The methodology used has to be notified considering the specifications set in Annex V and the guidance note (not published yet for the revised EED). The impact of these measures was regularly communicated in the National Energy Efficiency Action Plans (NEEAPs) and will be integrated in the NECPs in the future.

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Figure 1: In their NEEAPs, MS are obliged to outline policies they will use for achieving their energy savings targets. This chart shows the aggregated effects of these policies, based on an investigation of all submitted NEEAPs in 2014.

Source:  Rosenow J., Forster D., Kampman B., Legujit C., Pato Z., Kaar AL., Eyre N., Study evaluating the national policy measures and methodologies to implement Article 7 of the Energy Efficiency Directive, (London, RICARDO-AEA, 2015), p 5