At the end of an era of relatively cheap oil and natural gas, challenges facing the EU in the field of energy policy include issues such as increasing import dependency, limited diversification, high and volatile energy prices, rising global energy demand, security risks in producer and transit countries, growing threats from climate change, decarbonisation, slow progress in energy efficiency, challenges related to increasing the share of renewable energy sources, as well as the need for greater transparency, further integration and interconnection of energy markets. The significance of energy efficiency continued to increase thanks to Directive 2012/27/EU (25 October 2012) on energy efficiency.
Directive 2012/27/EU (25 October 2012) on energy efficiency builds on several previous documents, including Directives 2006/32/EC (on end-use energy efficiency) and 2004/8/EC (on the promotion of cogeneration). The 2012 Directive has in fact become a central, comprehensive EU framework regulation, which already set a clear objective: In 2018, EU leaders set the goal of reducing the EU’s annual energy consumption by 32.5% by 2030.
In March 2023, a new common strategy was defined. Directive 2023/1791/EU is the revised version of the 2012/27/EU Energy Efficiency Directive (EED) which, in line with the objectives of the European Green Deal, introduced stricter energy efficiency obligations.
1. Reducing overall energy demand
2. Fair competition for resources
3. Development of savings, efficiency and renewable sources
4. Preparation for EU energy market integration
5. Adaptation to climate change
6. Improvement of infrastructure
7. Green hydrogen partnership
8. REPowerEU plan (2022): Diversification, independence from Russian gas imports.
9. Public sector as an example (3% reduction)
10. Energy efficiency is a shared responsibility of the Member States and the EU
11. Shaping the energy mix is the sovereign right of the Member States
12. The benefits achieved through energy efficiency must exceed the volume of investments
1. 55% reduction in GHG emissions
2. 30% reduction in methane emissions compared to the 2020 reference scenario
3. 11.7% reduction in energy consumption compared to the 2020 reference scenario
4. The maximum final energy consumption (FEC) by 2030 is 846 Mtoe, the maximum primary energy
consumption (PEC) is 1,128 Mtoe 1, the allocation of which among Member States is determined by
their individual commitments
5. The annual energy saving obligation must be in the range of 0.8 - 1.9%
6. The capacity of renewable energy sources should reach 11 TW of installed nominal capacity
7. The rate of global energy efficiency improvements should be 4%.
Source: www.iea.org
On 22 May 2015, Hungary promulgated Act LVII of 2015 (on Energy Efficiency, hereinafter “Energy Efficiency Act”), and on 26 May 2015, Government Decree No. 122/2015. (V. 26.) regulating its implementation (hereinafter “Implementing Decree”), which was the domestic harmonisation of Directive 2012/27/EU (25 October 2012) on Energy Efficiency.
In Hungary, energy efficiency programmes and policy measures introduced in the 2014-2020 period resulted in annual final energy savings of approximately 3-4 PJ, but this result was at most half of the national target, thus from 2021 onwards, about double the current savings were needed. Therefore, from 1 January 2021, a new policy instrument, the so-called energy efficiency obligation scheme (EEOS) was introduced under the Energy Efficiency Directive, the method and extent of which were essentially determined by the Energy Efficiency Act and the Implementing Decree regulating its implementation.
As an essential part of the legislative mechanism, Decree No. 17/2020. (XII. 21.) of the Hungarian Energy and Public Utility Regulatory Authority (hereinafter: the Authority) was introduced, which defined the details of data reporting related to final energy savings and, as its most important element, in Annex 1 it also determined the standardised calculation requirements for energy savings achieved through energy efficiency programmes (so-called "catalogue sheets")
The key idea behind the EEOS, which had already been successfully applied in 16 Member States in Europe at that time, is that obligated parties must introduce programmes and implement measures that result in certified energy savings on the end-user side.
The purpose of the Act is to define certain tasks necessary for achieving the national energy efficiency target and to ensure the conditions for the implementation of these tasks, to comprehensively ensure the efficiency of energy supply and use, thereby reducing energy consumer costs and preserving environmental resources for future generations, in line with European Union legal requirements. Since 05/06/2015, the Energy Efficiency Act has undergone approximately 29 amendments and, in its current effective form, is about 60 pages long, setting out tasks for central public administration, public institutions, energy production facilities, the Hungarian Chamber of Engineers, Data Centres, as well as energy consumers and market participants. It also defines the tasks and requirements related to the Energy Efficiency Obligation Scheme (EEOS), energy auditing, energy specialist consultancy, and the energy inspection of heating and air conditioning systems.
The Energy Efficiency Act set the target in the National Energy and Climate Plan that final energy consumption in 2030 should not exceed the 2005 value of 785 PJ. To achieve this, in the period from 2021 to the end of 2030, an annual energy saving of 0.8% and, assuming policy measures with a lifetime covering the entire period, 7 PJ of new savings per year are required (currently the result is 3-4 PJ per year). The provisions of the Energy Efficiency Act must always be applied together with its Implementing Decree and certain HEPURA decrees
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