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Are you familiar with the new EPBD and EED energy requirements?

Do you own or manage a building? Perhaps you are responsible for energy use in a large organisation? If so, you are affected by the EU's stricter energy efficiency requirements. These requirements create new challenges, but also opportunities to cut costs and contribute to climate change mitigation.

Society's energy consumption is closely linked to greenhouse gas emissions. If we can reduce energy demand and make energy use more efficient, this will lead to lower emissions. This is true even in cases where the energy source is renewable, as production and distribution always have some impact on the climate.

Two directives to reduce and streamline energy consumption

The EU is tackling the issue through two directives, the EPBD (Energy Performance of Buildings Directive) and the EED (Energy Efficiency Directive), which target the building stock and its owners, respectively, as well as states, public actors and major energy users.

"Both directives are about trying to meet the climate requirements set by the EU; that is the basis. The EPBD is about emitting as little carbon dioxide as possible from the building sector, starting with the worst buildings. By renovating to reduce energy consumption, it is possible to reduce carbon dioxide emissions", explains Lisa Löfving, Business Development Manager for Energy and Heating at RISE, and continues: 

"Another important point is to phase out fossil fuels as a heating system, but in Sweden this is not a huge problem, to be honest. Here, we have a very low proportion of fossil fuels as a heating source. On the other hand, we have a fairly high total energy consumption due to our cold climate. That is where we have more work to do."

More organisations need to conduct energy audits

The EED takes a broader approach to energy efficiency. The directive sets binding requirements for how much each Member State must reduce its energy consumption.

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For Sweden, this means reducing consumption by 36 TWh by 2030. Today, we consume approximately 355 TWh annually, so this represents a reduction of nearly 10 per cent.

"It's not something that can be done overnight, so to speak. Policy instruments will be needed to get there. In concrete terms, more companies and public actors will need to conduct energy audits and introduce various types of energy management systems," says Lisa Löfving.

An energy audit is a systematic analysis of how an organisation or property uses energy, with the aim of identifying energy wasters and finding cost-effective measures. What type of heating is purchased? And where does the energy go?

"When discussing real estate, I always recommend looking at the entire building or building stock. People often talk about low-hanging fruit and starting small, but in this context, that is the wrong approach. What makes the whole look the way it does? What can make the whole better? These are the kinds of questions that need to be asked", says Lisa Löfving.

People often talk about low-hanging fruit and starting small, but in this context, that is the wrong approach.

How requirements can be translated into real benefits

Another tip is to work from the outside in. Or, as Lisa Löfving puts it, to put on your hat and winter coat first:

"Applying heat recovery to ventilation systems usually results in huge savings, especially for buildings. Adding extra insulation to windows and attics can also make a big difference to the overall total."

Once the climate shell has been sealed, it is time to review the installations. For example, it is not at all unusual to both heat and cool a building at the same time. A certain process needs cooling (think of a server room), while at the other end of the building, where people sit and work, heating is needed. Redirecting the flows and utilising the heat from the server cooling is a typical example of a measure that both reduces energy consumption and leads to cost savings.

“RISE can be called in after an energy audit has been carried out and the next step is to be taken. We are happy to work with complex buildings or industries where there are several different heating and cooling systems and installation solutions, where our expertise can really make a difference. RISE can also certify energy management systems or environmental management systems with energy modules,” says Lisa Löfving.

The directives create export opportunities

Stricter energy efficiency requirements are forcing major investments in renovations and new technology, but EU directives also present business opportunities for Swedish companies.

"Export opportunities are created for companies that deal with solutions, technology and control for energy efficiency. Heat pumps, for example, are something Sweden has been a world leader in and has been able to sell internationally. This shows that a country the size of Sweden can become a major player in a particular technology if we invest early on", says Lisa Löfving.

This is EPBD

EPBD stands for Energy Performance of Buildings Directive and its purpose is to reduce energy consumption and emissions from buildings, which account for approximately 40 per cent of the EU's total energy consumption. The directive imposes stricter energy performance requirements on new construction and renovation, as well as requirements for energy declarations and climate-neutral buildings.

The EPBD came into force in spring 2024 and must be implemented in the national legislation of member states by 29 May 2026 at the latest.

EPBD in short

  • All new buildings must be nearly zero-energy buildings from 2030 onwards.
  • Requirements for renovation of existing buildings with the worst energy performance
  • Mandatory energy performance certificates for sales and rentals
  • Phasing out fossil fuels in heating systems
  • Requirements for the installation of solar cells on new buildings
  • Common minimum standards for energy performance across the EU

This is EED

The EU's Energy Efficiency Directive (EED) sets binding targets for reducing energy consumption. The EED stands for Energy Efficiency Directive, and its purpose is to enable the EU to achieve its climate targets by reducing energy consumption by at least 11.7 per cent by 2030 compared to projections. The directive covers both the public and private sectors and sets requirements for energy-saving measures, energy efficiency plans and regular monitoring.

The EED came into force in autumn 2023 and was to be implemented in member states within two years. Only one country kept to this schedule. In Sweden and the other member states, implementation has been delayed.

EED in short

  • Annual energy savings of at least 1.49 per cent for all Member States
  • Requirements for energy efficiency plans for large companies
  • The public sector shall renovate at least 3 per cent of its buildings annually.
  • Mandatory energy audits for large companies every four years
  • Requirements for district heating companies to increase the share of renewable energy
  • Monitoring and reporting of energy consumption

Lisa Löfving

Contact person

Lisa Löfving

Chef Strategisk forskning och affärsutveckling

+46 10 516 58 73

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