The International Network
for Sustainable Energy

Updated: June 2010

Energy Service Directive - 2009-2010

The purpose of the Energy Service Directive (Directive 2006/32) is to enhance energy end-use efficiency using cost effective improvements.
Since the Directive was adopted in 2006 action plans have been adopted and carried out.
At the end of the 2009 a lot have happened by:
· providing indicative targets
· removing existing market barriers by providing necessary frameworks and incentives
· creating conditions to promote and development the energy services market
· setting targets for energy suppliers in many countries, and
· setting new measures, such as tradable “White Certificates”, that have been introduced in some countries.
During this year 2010 a revision of End-Use energy efficiency and services directive (2006/32/EC) (ESD), which could include, among others, a provision for public incentives to be only provided to measures that guarantee a measurable energy saving, is expected.
Still, it is uncertain whether the measures will add up to the expected savings; even for the guidelines in 2016.

Report on Energy Service Directive - 2009

In July 2009, the "Energy Efficiency Watch Initiative" (EEWI) has evaluated the national actions plans of the Energy Service Directive (ESD, 2006/32). Based on the call for an "Energy Efficiency Watch" EEWI started its work over the year 2006. It website is the online platform of the EEWI and the associated "Energy-Efficiency-Watch-Project" (EEW).

In these plans, the countries explain how to achieve their 9% energy efficiency target by 2016. The evaluation showed some weakness and methodological uncertainties in the directive that negatively influences the implementation. The spectrum of new measures mentioned in the national action plans is quite impressive, but the study found reasons to be skeptical about whether these measures have been caused by the ESD or whether they would have been implemented anyway.
Consequently, in the national plans it is not clear how much expected savings by 2016 will be realised in addition to the savings that would have occurred anyway in the business - as - usual trends.
Read more on EEWI.

National Energy Efficiency Action Plans

With the Directive, the EU countries have an obligation to make national energy efficiency action plans. The first plans were due by the end of June 2007; but by December 1, 2007, the EU Commission had only received plans from 17 of the 27 EU countries, while two came during December. The plans shall describe how the countries will realise a 9% reduction in final energy consumption compared with business as usual until 2016. Of the first 17 countries that submitted their plans, 8 intend to achieve higher savings that the 9%; but only 5 of the countries have actually adopted higher targets (10%), Lithuania (11%), Italy (9.6%), Romania (13.5%), and Spain (11% by 2012). Several countries have not made plans until 2016, so it is not possible to evaluate how they can reach the target.
Many national plans include important measures that could be used more. This includes special actions for the public sector, campaigns, tax incentives, funds, etc. Many of the actions, are, however, not new. The number of new activities from the implementation of the Directive is more limited.
Read EU Commission and national action plans at the strategies website.
Read more opinions from INFORSE-Europe and others below.

The Final Directive - Description

The Directive was finally adopted as Directive 2006/32 on April 5, 2006. It entered into force May 17, 2006 and shall be implemented on May 17, 2008.

The Directive is under Eur Lex: (2006/32). The energy efficiency target is 1%/year, for the first 9-year period. The target is defined as the energy efficiency improvements resulting from energy efficiency measures specified in the text. While this is a sensible way to measure it from a policy-maker's point of view, the list includes a number of measures that are - or can be - part of the normal "business as usual" development of increased energy efficiency of the societies. Thus, its open for some "free riding" of countries that counts energy efficiency improvements that are not an effect of active policies.
The Directive also sets provisions to create conditions for the development and promotion of a market for energy services and for the delivery of other energy efficiency improvement measures for final consumers.

Opinion by INFORSE-Europe

INFORSE-Europe urges the EU countries to strengthen the energy efficiency target in the implementation of the directive. The target should be more than 1%/ per year above business as usual, INFORSE-Europe recommends 2-3% per year in additional energy efficiency increase. This call for seemingly high targets are because of the low increase in energy efficiency in the last 5 years, both compared with the technical and economical possibilities and compared with the previous achievements.

INFORSE-Europe also proposes that the countries agree to the proposal of integrating energy efficiency in the energy markets by introducing schemes where a fraction of the electricity price is used for consumer information and promotion of energy efficiency. These activities can be organised by the distribution companies that by nature are not players on the competitive market, or by special energy savings trusts. If the activities are well organised, the savings that the consumers get because of the activities will more than offset the fees they pay for the activities. Recent evaluations of Danish electricity efficiency programs proves that. Free-riding by including "business as usual" as described below should be avoided.

Procedure

June 2009: A synthesis of the complete assessment of all 27 National Plans to the Energy Efficiency Action Plans (EEAP), is now published and available to be checked. This synthesis was required by Directive 2006/32/EC on energy end-use efficiency and energy services.
The Action Plan for Energy Efficiency (EEAP) of 2006 was prepared and adopted by the European Commission with a view to intensify the process of realising the substantial cost-effective energy savings potential and the target on energy consumption reduction. The EEAP's running time is until 2012.
Read the EC working document as pdf.

May 17, 2006: The Directive entered into force and must be implemented two years later. The countries should develop energy efficiency action plans before 30. June 2007 for the first three-year period.

April 5, 2006: The Directive was finally adopted as directive 2006/32.

March 14, 2006: The EU energy minister adopted the Directive in the form proposed by the EU Parliament 13/12 2005.

December 13, 2005: The EU Parliament agreed to the proposal of the energy ministers with targets of just 1% per year energy efficiency increase (9% in 9 years) and only as an indicative target. In addition the countries must impose obligations on their energy suppliers and prepare national Energy Efficiency Action Plans.

June 28, 2005: The energy ministers made a political agreement at their meeting June28. They did not agree the position of the Parliament as they do agreed to only 6% increase in energy efficiency for the first six years, no mandatory targets, and no special targets for the public sector.

June 7, 2005: The EU Parliament agreed to ask for targets June 7, the EU Parliament agreed to ask for stronger targets. They asked for progressive increasing targets of 1% per year for the first 3 years (2006-2008), 1.3% for the for the next three years, and 1.5% for the following three years. In addition they asked for higher targets for the public sector, starting with 1.5% for the first years. The Parliament also proposed that the targets should be mandatory.

March-April 2005: The proposal is discussed in European Parliament in 2005. The Parliament's environmental and energy committees have proposed higher efficiency increases than the 1% per year, included in the original proposal. The environmental committee proposed 2.5%/year with 3% per year for the public sector.

November 29, 2004: The proposal was discussed at EU energy ministers council, but no agreement was reached. Unfortunately the countries are not all agreeing with the above opinion of INFORSE-Europe.

Additionally the countries were limited in their decision-making because they are waiting for the Parliaments opinion.

Spring 2004: Preliminary discussions took place in the EU Parliament and in the EU countries in the spring of 2004. While conclusions from these are preliminary, all countries could accept EU-wide indicative energy efficiency targets, while some country representatives had reservations to national indicative targets.

December 10, 2003: Proposed by the Commission

The proposal's progress was available under the Parliament's website, but as it is adopted it is not available any more there.