Energy Efficiency Improvement

Executive summary

The European Union has long been at the forefront of integrating energy efficiency and sustainability into all economic sectors. Through a comprehensive regulatory framework, the EU has successfully implemented measures that significantly increase energy efficiency.

As part of the SECCA project’s ongoing commitment to enhancing sustainable energy practices across Central Asia, this section underscores the strategic expansion of the present Knowledge hub, with a particular emphasis on “EU Policies and Regulations” related to the energy efficiency improvement. This initiative is poised to be pivotal in guiding the region towards achieving substantial energy savings, reducing greenhouse gas emissions, and fostering sustainable urban development.

The Landscape of the Energy Efficiency Improvement Regulations

Energy efficiency regulations are critical to achieving energy efficiency and sustainability across all energy-consuming sectors. The intricate landscape of these regulations is composed of multifaceted elements, each playing a distinct yet interconnected role in driving the improvement towards more sustainable energy use and readiness for renewables in building, transport, industry, agriculture and other sectors. This section elucidates the synergistic framework of regulations that, while inspired by the European Union’s Energy Efficiency Directive (EED), are presented here as a compendium of best practices for the Central Asian context.

Elements helping to improve energy efficiency

The main elements under the EU Energy Efficiency Directive (EPBD) are interconnected components designed to collectively enhance the sectors consuming energy within the European Union. Here’s a simplified grouping:

STRATEGIC LEVEL

The strategic level of energy efficiency policy encompasses the high-level principles and targets that guide the comprehensive approach to achieving significant energy savings and supporting the broader climate goals of the European Union. At this level, the focus is on establishing a strong foundation for energy efficiency through overarching principles, binding targets, and alignment with long-term sustainability objectives. By prioritising energy efficiency in policy-making, integrating it with climate neutrality goals, and recognising its multiple benefits, the strategic framework ensures that energy efficiency is embedded in all energy planning and decision-making aspects. This holistic approach drives substantial reductions in energy consumption and greenhouse gas emissions and enhances economic growth, energy security, and social well-being.

• Energy Efficiency First Principle: The “Energy Efficiency First” principle prioritises energy efficiency improvements in all energy policy and planning decisions. It ensures that demand-side measures are considered before investing in energy supply infrastructure. This principle underpins the EED’s holistic approach, influencing various policy levels and sectors to integrate energy efficiency measures at the forefront.
• Energy Efficiency Targets: Energy efficiency targets set measurable goals for energy savings, driving policy actions and investments. These targets provide benchmarks for Member States to achieve a cumulative energy savings objective, aligning national efforts with broader EU goals. They serve as a foundation for the tactical and operational measures under the EED.
• Alignment with Higher Climate Neutrality Goals: This element ensures energy efficiency policies synchronise with the EU’s long-term climate neutrality goals. It emphasises reducing greenhouse gas emissions through efficient energy use, contributing to the broader objective of a carbon-neutral economy by 2050.
• Multiple Benefits of Energy Efficiency: This element recognises multiple benefits, such as economic savings, improved energy security, health benefits, and reduced environmental impacts. It promotes a comprehensive approach to energy efficiency and advocates considering these wide-ranging advantages in policy-making and implementation.

TACTICAL LEVEL

Tactical measures on the energy supply side focus on optimising heating, cooling, and energy transformation systems, while those on the energy use side emphasise the exemplary role of the public sector, energy-efficient public procurement, and energy-saving obligations. Horizontal provisions ensure the availability of skilled professionals, robust energy services, and adequate financing to support these initiatives. By integrating these elements, the policy framework aims to achieve significant energy savings, reduce greenhouse gas emissions, foster economic growth, improve energy security, and enhance social well-being. This cohesive and multi-faceted approach ensures that energy efficiency measures are effectively implemented, monitored, and continuously improved, supporting the broader climate and energy goals.

– Energy Supply Side

• Heating and Cooling Planning: This involves strategic planning for efficient heating and cooling systems, crucial for reducing energy consumption in buildings and industries. It includes developing district heating and cooling infrastructure and integrating renewable energy sources.
• Heat and Cooling Supply: Optimizing the supply of heat and cooling involves improving the efficiency of existing systems and developing new, energy-efficient technologies. This includes deploying advanced technologies and systems to enhance energy transfer and minimise losses.
• Transformation, Transmission, and Distribution: Improving efficiency in energy transformation, transmission, and distribution reduces losses from energy generation to end-use. This includes upgrading infrastructure, adopting smart grids, and enhancing the efficiency of power plants and transmission networks.

– Energy Use

• Exemplary Role of the Public Sector: Public sector entities must lead by example in implementing energy efficiency measures. This includes adopting energy-efficient practices, technologies, and policies and showcasing best practices for other sectors.
• Exemplary Role of Public Buildings: Public buildings must serve as energy efficiency models, incorporating best practices in energy management, retrofitting, and sustainable design. This highlights the public sector’s commitment to energy efficiency and encourages private sector adoption.
• Energy-Efficient Public Procurement: This mandates that public procurement processes prioritise energy-efficient products and services, driving market demand for energy-efficient solutions and fostering innovation in the private sector.
• Energy Saving Obligations and Obligation Schemes:  Energy saving obligations impose targets on energy companies to achieve specific energy savings among their customers, promoting investment in energy efficiency measures across various sectors.
• Energy Audits and Energy Management: Regular energy audits and implementing energy management systems help organisations identify energy-saving opportunities and implement systematic measures to reduce energy consumption.
• Efficiency in Data Centers: Enhancing energy efficiency in data centres addresses the growing energy demands of the digital economy, ensuring that data processing and storage are conducted with minimal energy waste.
• Billing Information: Providing clear and detailed billing information helps consumers understand their energy usage patterns, encourages energy-saving behaviours, and enables informed decisions on energy consumption.
• Awareness Raising: Awareness-raising campaigns educate the public and stakeholders about energy efficiency’s benefits, fostering a conservation culture and promoting behavioural changes.
• Empowering and Protecting Vulnerable Consumers: Specific measures are designed to protect and empower vulnerable consumers, ensuring they can access affordable energy and benefit from energy efficiency improvements.

– Horizontal Provisions

• Energy Professionals: Developing a skilled workforce of energy professionals ensures that there is the expertise needed to implement and maintain energy efficiency measures across various sectors.
• Energy Services: Promoting the growth of energy services, including energy performance contracting, helps organisations implement energy-saving measures without upfront costs, facilitated by specialised service providers.
• National Energy Efficiency Fund and Financing: Establishing national energy efficiency funds provides financial support for energy efficiency projects, addresses financial barriers, and promotes investments in energy-saving measures.
• National Technical Support: National technical support ensures stakeholders have access to the necessary technical knowledge and resources to implement energy efficiency measures effectively.

Interrelations and Interactions

The strategic level sets the overall direction and targets, prioritising energy efficiency and integrating with broader climate goals. The tactical level translates these strategic priorities into actionable measures across the energy supply and demand sectors. Horizontal provisions support these efforts by providing the necessary skills, services, financing, and technical support.

• Energy Efficiency First Principle influences all tactical measures, ensuring they prioritise efficiency.
• Energy Efficiency Targets drive supply and demand actions, aligning efforts with EU-wide goals.
• Alignment with Climate Neutrality Goals ensures that all energy efficiency measures contribute to the broader objective of reducing greenhouse gas emissions.
• Multiple Benefits of Energy Efficiency provide the rationale for broad support and implementation of energy efficiency measures across sectors.
• Strategic targets and the Energy Efficiency First principle directly influence heating and Cooling Planning and Supply.
• The role of the public sector and public buildings demonstrates practical energy efficiency applications that influence public perception and adoption.
• Energy-Efficient Public Procurement ensures that public spending aligns with energy-efficiency goals, creating a market for energy-efficient products and services.
• Energy Saving Obligations and Energy Audits drive continuous improvement in energy use, supported by detailed billing information and awareness campaigns.
• Empowering Vulnerable Consumers ensures inclusivity in the benefits of energy efficiency.
• Energy Professionals and Energy Services provide the expertise and solutions necessary for implementing measures.
• National Energy Efficiency Fund and Technical Support ensure that financial and practical resources are available to support energy efficiency initiatives.

By coordinating these elements, the EED fosters a comprehensive approach to improving energy efficiency, ensuring that strategic priorities are translated into effective actions supported by necessary skills and resources.