EU Energy Services Directive
The Energy End-Use Efficiency and Energy Services Directive (ESD 2006/32/EC) provides a framework for ensuring that when energy is finally consumed, it is done so in a more efficient and economic way. The Directive applies to providers of energy efficiency improvement measures, energy distributors, distribution system operators and retail energy sales companies, as well as final customers.This covers the retail sale, supply and distribution of grid-based energy carriers, such as electricity and natural gas, and energy types such as district heating, heating oil, coal and lignite, forestry and agricultural energy products and transport fuels.
The main provisions of the Directive include:
- Setting the framework and conditions for the development and promotion of a market for energy savings and the delivery of energy-saving programmes and measures to end-users
- An indicative energy savings target of 9% between 2008 and 2016 which is to be outlined by every Member State via national energy efficiency action plans (NEEAPs).
- Public sector requirements to improve energy efficiency and provide information to the public and businesses via:
- Financial instruments designed for energy savings, e.g. third-party financing contracts and energy performance contracts
- Energy-efficient equipment and vehicles
- Switch to low-energy products
- Purchase, replace, retrofit or rent energy-efficient buildings
- Requirements on energy suppliers to promote greater effeciency and provide information to final customers on efficiency programmes
- Provision of individual metering and informative billing to end users to give an accurate picture of energy use.
Member States are required to submit NEEAPs to the European commission in mid 2007, 2011 and 2014.
The residential and tertiary sectors are covered under the Directive as eligible areas for energy efficiency improvement measures. These include heating and cooling systems, insulation and ventilation and lighting.
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