Article 8 – Energy Savings Obligation - Antaris Consulting

Article 8 – Energy Savings Obligation

This blog series is aimed at providing a summary of key elements of the recast Energy Efficiency  Directive (EU) 2023/1791, which was adopted by the European Parliament and the Council earlier this year, has been published in the EU Official Journal on 20th September and came into force 20 on the 10th October 2023. After its entry into force, EU Member States will have two years to transpose most of the different elements in the directive into national law. 

This third blog sets out to tackle the key points of Article 8.

Article 8 of the EU directive outlines key points related to energy savings obligations for Member  States as follows:

Energy Savings Targets: 

Member States are required to achieve cumulative end-use energy savings over specified time periods. 

The savings targets are defined in two phases: 

  1. a) From January 2014 to December 2020, Member States must achieve savings equivalent to  1.5% of annual energy sales to final customers, excluding transport. 
  2. b) From January 2021 to December 2030, savings targets are specified for different sub-periods with varying percentages, with the aim of reaching 1.9% annual energy savings by the end of  2030. 

Achieving Energy Savings:

 Member States can achieve these savings by implementing an energy efficiency obligation scheme  (as outlined in Article 9) or alternative policy measures (as outlined in Article 10). They can also combine these approaches. 

Prioritizing Vulnerable Groups:

Member States must prioritize energy efficiency measures among vulnerable populations, including those affected by energy poverty and low-income households. 

Policy measures should be designed to ensure a just and inclusive energy transition. 

Renewable Energy Communities: 

Member States should consider and promote the role of renewable energy communities in implementing energy-saving measures. 

Reporting and Documentation: 

Member States must include information about their energy savings calculations and policy measures in their integrated national energy and climate plans. 

Specific indicators and calculations related to energy savings must be documented in these reports. 

Applicability of Energy Savings: Energy savings achieved after December 31, 2020, can be counted towards future targets. 

Calculation Options: 

Member States may use various calculation methods to meet their energy savings targets, including setting their annual savings rate, excluding certain energy usage, and counting energy savings from specific policy measures.

The options vary depending on the time period. 

Commission Recommendations: 

The European Commission may issue recommendations if it determines that Member States’ policy measures are insufficient to meet energy savings obligations. 

Balancing Obligations:

Member States must make up for any energy savings shortfall in the following obligation period. They can carry over up to 10% of any surplus savings to the next period. 

Double Counting and National Contributions: 

Member States must ensure there is no double counting of energy savings resulting from overlapping policy measures. 

They should demonstrate how energy savings contribute to their national energy and climate plans and commitments. 

National legislation to transpose the above Article must be implemented by 11 October 2025 in all  Member States.

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