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EU Directive on Energy End Use Efficiency & Energy Services
EU Directive on Energy End Use Efficiency & Energy Services
– the “Energy Services Directive” (ESD) 2006
Notes on DEFRA Workshop – 11th September 2007
The purpose of the new Energy Services Directive (ESD) is to enhance the cost effective improvement of energy end use efficiency in Member States. It allows for voluntary as well as legislative measures to be put in place and must be fully implemented by 17th May 2008.
Key Points
The Directive covers all forms of energy, including electricity, natural gas, liquefied petroleum gas and other fuels such as coal and heating oil, biomass and transport fuels (except aviation and bunker fuels).It applies to providers of energy efficiency measures, energy distributors, distribution system operators and retail energy sales companies; and all energy users except those involved with the EU carbon emissions trading scheme. (Carbon Reduction Scheme not mentioned)
• sets a national indicative energy savings target of 9% by 2017.
• public sector to fulfil an exemplary role in the context of the Directive
• Member States required to place obligations on energy suppliers and distributors to promote energy efficiency
• requirements on metering and billing to allow consumers to make better informed decisions about their energy use.
Public Sector Role
Article 5 requires the public sector to fulfil an exemplary role in the context of the Directive along with specific requirements to:• focus on cost effective improvements with the largest saving in the shortest time
• undertake at least two of the following measures:
(a) requirements concerning the use of financial instruments for energy savings, including energy performance contracting
(b) requirements to purchase equipment and vehicles based on lists of energy-efficient product specifications of different categories of equipment and vehicles
(c) requirements to purchase equipment that has efficient energy consumption in all modes, including in standby mode
(d) requirements to replace or retrofit existing equipment and vehicles with the equipment listed in points (b) and (c);
(e) requirements to use energy audits and implement the resulting cost-effective recommendations;
(f) requirements to purchase or rent energy-efficient buildings or parts thereof, or requirements to replace or retrofit purchased or rented buildings or parts thereof in order to render them more energy-efficient.
• publish guidelines on energy efficiency and energy savings as a possible assessment in competitive tendering
• facilitate and enable the exchange of best practice between public sector bodies
• assign to a new or existing organisation(s) responsibility for the integration of the relevant policies
Implications on the HE & FE Sectors:
ALL HE & FE Institutions will fall under the umbrella of the Directive as Public Sector entities.The Directive is primarily a driver to ensure Energy / Carbon savings are achieved, recorded and reported.
• Energy efficiency in the built Estate through improvements when areas / buildings are refurbished.
• New builds are designed to current regulations as a minimum along with newly leased / rented buildings.
• Vehicle fleets to be converted when viable to low emission fuels.
• Purchasing energy efficient equipment through published policy which includes a Supplier commitment in writing to Energy Efficiency / Sustainable Operational and Premises.
• Contractor selection process that includes commitment in writing to Energy Efficiency / Sustainable Operational and Premises.
Drivers would include:
1. Reporting (naming and shaming – without some sort of KPIs this would be difficult and meaningless),2. demonstrable use of the Performance of Building Directive (adequate use of Building Energy Performance Certificates / Rating) and
3. implementation of “regular” energy audit recommendations and performance in meeting CRC
4. Auditing of our compliance through the OJEU process (modified one expects to include the use of “Energy Efficient Contractors /Suppliers).
No new specific targeted funding would be available. This means that emphasis has to be put on using existing monies perhaps obtained from one’s Institution based on meeting this worthwhile and important Directive.
Energy suppliers would be encouraged to improve and extend the use / installation of “Smart Metering” assumed funded from vast profits.
Changes have already taken place to discontinue the current “Domestic Customer” arrangement of a 28 Day Contract and replacing it with a 12 Month minimum Contract – this could include extended contract period where funded energy efficiency improvements are carried out.
Recommendations put forward by the Education Sector present included:
• Further consultation with the Sector including (for HE) HEFCE, HEFCW, SFC, AUDE, EAUC, AUE etc.• Scheme to be simple and cheap to implement
• Sector relevant
• Use of existing schemes and funding to be allowed to be counted i.e. Salix
• Development of sensible and meaningful KPIs – not imposed but agreed with Schools, FE and HE
This is fronted by DEFRA and the point was made clearly that HMG need to get their act together and talk to the other Departments, Agencies, etc. within Government currently developing / implementing similar and / or related Directives, Regulations, Acts, etc.
We cannot now only sit and wait – 17th May 2008 is not far away. Institutions that take a pro-active approach to energy efficiency improvements will be much better placed than those that simply wait.
Bob Stiff
Energy & Sustainability Manager, Brunel University
for EAUC
28th September 2007
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