***I DRAFT REPORT. EN United in diversity EN. European Parliament 2016/0376(COD)

Transcription

1 European Parliament Committee on Industry, Research and Energy 2016/0376(COD) ***I DRAFT REPORT on the proposal for a directive of the European Parliament and of the Council amending on energy efficiency (COM(2016)0761 C8-0498/ /0376(COD)) Committee on Industry, Research and Energy Rapporteur: Adam Gierek PR\ docx PE v01-00 United in diversity

2 PR_COD_1amCom Symbols for procedures * Consultation procedure *** Consent procedure ***I Ordinary legislative procedure (first reading) ***II Ordinary legislative procedure (second reading) ***III Ordinary legislative procedure (third reading) (The type of procedure depends on the legal basis proposed by the draft act.) s to a draft act s by Parliament set out in two columns Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column. The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend. s by Parliament in the form of a consolidated text New text is highlighted in bold italics. Deletions are indicated using either the symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced. By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted. PE v /67 PR\ docx

3 CONTTS Page DRAFT EUROPEAN PARLIAMT LEGISLATIVE RESOLUTION... 5 EXPLANATORY STATEMT ANNEX: LIST OF TITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT PR\ docx 3/67 PE v01-00

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5 DRAFT EUROPEAN PARLIAMT LEGISLATIVE RESOLUTION on the proposal for a directive of the European Parliament and of the Council amending on energy efficiency (COM(2016)0761 C8-0498/ /0376(COD)) (Ordinary legislative procedure: first reading) The European Parliament, having regard to the Commission proposal to Parliament and the Council (COM(2016)0761), having regard to Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8-0498/2016), having regard to Article 294(3) of the Treaty on the Functioning of the European Union, having regard to the opinion of the European Economic and Social Committee of 26 April , having regard to the opinion of the European Committee of the Regions of... 2, having regard to Rule 59 of its Rules of Procedure, having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on the Environment, Public Health and Food Safety (A8-0000/2017), 1. Adopts its position at first reading hereinafter set out; 2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal; 3. Instructs its President to forward its position to the Council, the Commission and the national parliaments. 1 Recital 1 (1) Moderation of energy demand is one of the five dimensions of the Energy Union Strategy adopted on 25 February (1) Improving the efficiency of primary energy consumption benefits the environment, will reduce greenhouse gas 1 Not yet published in the Official Journal. 2 Not yet published in the Official Journal. PR\ docx 5/67 PE v01-00

6 2015. Improving energy efficiency will benefit the environment, reduce greenhouse gas emissions, improve energy security by reducing dependence on energy imports from outside the Union, cut energy costs for households and companies, help alleviate energy poverty and lead to increased jobs and economywide economic activity. This is in line with the Union commitments made in the framework of the Energy Union and global climate agenda established by the Paris Agreement of December 2015 by the Parties of the United Nation Framework Convention on Climate Change. emissions, improve energy security, cut the costs of final electricity and heat supplied to households and companies, where it will be used effectively in the form of usable energy and useful work to alleviate energy poverty, thereby generating economic activity in the Member States. The amendment specifies, without unnecessary references, areas in which energy efficiency measures are feasible. 2 Recital 2 (2) of the European Parliament and of the Council 9 is an element to progress towards the Energy Union, under which energy efficiency should be treated as an energy source in its own right. The 'energy efficiency first' principle should be taken into account when setting new rules for the supply side and other policy areas. The Commission should ensure that energy efficiency and demand side response can compete on equal terms with generation capacity. Energy efficiency needs to be considered whenever energy system relevant planning or financing decisions are taken. Energy efficiency improvements need to be realised whenever it is more cost-effective than equivalent supply-side solutions. This (2) of the European Parliament and of the Council 9 is an element to progress towards the Energy Union, under which energy efficiency should be treated as a source of accessible energy in its own right. The 'energy efficiency first' principle should be taken into account when setting rules providing for an increase in or the stabilisation of the supply of final energy to the Member State markets, with declining consumption of primary energy. Energy efficiency needs to be considered whenever energy system planning and financing decisions are taken. Investments to improve final energy efficiency need to be realised whenever it is more cost-effective for the market than equivalent supply-side PE v /67 PR\ docx

7 should help to exploit the multiple benefits of energy efficiency for Europe's society, in particular for citizens and businesses. 9 of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, , p. 1). solutions. This should help to exploit the multiple benefits of an increase in energy efficiency at all stages of energy flow and thereby improve the welfare of Europe's society. The Commission should ensure that the real increase in energy efficiency and response to actual market demand can compete on equal terms with increased capacity to generate final energy, particularly electricity, the consumption of which determines per capita GDP. Decisions favouring investments in energy efficiency, particularly at the stage of converting primary energy into final energy, and in effective grids used to supply energy to the users, should be prioritised in EU financial plans, especially under the European Fund for Strategic Investments (EFSI). 9 of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (OJ L 315, , p. 1). Two important aspects have been introduced: firstly, it has been noted that it is not some improvements, but rather investments that are important; and secondly, it has been noted that welfare, i.e. an increase in per capita GDP, depends directly on the consumption of energy at the last stage of its flow, expressed in per capita terms as well. The amendment stresses the importance of per capita GDP for investment needs in energy, along with the need for more flexible energy policies from the Member States. 3 Recital 2 a (new) PR\ docx 7/67 PE v01-00

8 (2a) All forms of primary energy should take into account the extra work required to acquire that energy, to establish and operate power installations and to dismantle them, and to eliminate the associated threats to the environment. Primary energy is never entirely transformed and supplied to the users as final energy, even when it is generated from renewable sources. 4 Recital 2 b (new) (2b) Member State measures should be supported by well-designed and effective EU financial instruments, such as the EU budget, the EFSI and the EIB, which should be technologically neutral and focused on the most cost-effective method of reducing primary energy consumption or increasing energy efficiency. Tools to help meet the EU target should be designed in a similar manner, thereby ensuring a cost-effective, technologically neutral and consumer-oriented solution. 5 Recital 3 (3) The European Council of October (3) The European Council of October PE v /67 PR\ docx

9 2014 set a 27 % energy efficiency target for 2030, to be reviewed by 2020 'having in mind an Union level of 30 %'. In December 2015, the European Parliament called upon the Commission to also assess the viability of a 40 % energy efficiency target for the same timeframe. It is therefore appropriate to review and consequently amend the Directive to adapt it to the 2030 perspective set a 27 % energy efficiency target for 2030, to be reviewed by 2020 'having in mind an Union level of 30 %'. In December 2015, the European Parliament called upon the Commission to also assess the viability of a 40 % energy efficiency target for the same timeframe. It is therefore appropriate to review and analyse the technical and investment aspects of an amendment to the Directive, so as to ensure that they will not, by 2030, result in economic disturbance in the Member States or worsen the living conditions of citizens owing to the reduction in their per capita GDP. All the Member States should review their capacities so that they can base their various ambitions on realistic grounds. 6 Recital 4 (4) There are no binding targets at national level in the 2030 perspective. The need for the Union to achieve its energy efficiency targets at EU level, expressed in primary and final energy consumption, in 2020 and 2030 should be clearly set out in the form of a binding 30 % target. This clarification at Union level should not restrict Member States as their freedom is kept to set their national contributions based on either primary or final energy consumption, primary or final energy savings, or energy intensity. Member States should set their national indicative energy efficiency contributions taking into account that the Union s 2030 energy consumption has to be no more than Mtoe of primary energy and no more than (4) There are no binding targets at national level in the 2030 perspective. The need for the Union to achieve its goals of significantly reducing primary and final energy consumption, in 2020 and 2030 should be clearly set out at EU level in the field of commercial power industry, heating and cooling in the housing sector and in transport in the form of a binding 35 % target. This clarification at Union level should not restrict Member States, which are guided by their development plans when it comes to the priority given to the rate of efficiency improvements in the aforementioned economic sectors, as their freedom to set their national contributions based on effectively setting their economies' energy intensity and on PR\ docx 9/67 PE v01-00

10 987 Mtoe of final energy. This means that primary energy consumption should be reduced by 23 % and final energy consumption should be reduced by 17 % in the Union compared to 2005 levels. A regular evaluation of progress towards the achievement of the Union 2030 target is necessary and is provided for in the legislative proposal on Energy Union Governance. cumulative primary energy consumption will be kept. Member States should set their national indicative contributions to limiting cumulative primary energy consumption taking into account that the Union's cumulative energy consumption has to be no more than Mtoe (+ transport fuel) of cumulative primary energy. A regular evaluation of countries' progress towards fulfilling their obligations which, as a whole, make up this EU goal will be carried out every 2 1/2 years and is provided for in the legislative proposal on Energy Union Governance. Energy efficiency should be viewed as a whole, without any exclusions, while the best method of savings calculation is to calculate on the basis of a limited cumulative primary energy consumption. 7 Recital 4 a (new) (4a) The rate of energy efficiency changes should be calculated at the level of companies and economic sectors and at Member State level (as it is dependent on their energy mix and their pace of economic development), and it should be specified at the level of the entire European Union, with the Energy Union bringing together individual national systems into one integrated system based on the common market principle. The Energy Union in the field of efficiency will become a reality when the average energy mix PE v /67 PR\ docx

11 for all Member States starts to be more energy efficient, among other means, through the interconnection of national energy systems effectively. 8 Recital 4 b (new) (4b) The operational efficiency of energy systems at any given moment is influenced by the ability to feed power generated from different sources - with different degrees of inertia and start-up times - into the grid smoothly and flexibly; improving this efficiency will enable better use to be made of renewable energy, such as wind power combined with gas turbines, to avoid overloading networks served by conventional large power generators with boilers that have significant thermal inertia. Energy generated from renewable sources is, with the exception of energy generated by hydroelectric power stations, not effective, and thermal power stations must be kept in standby mode if the energy is to be fed into the grid in a 'rigid way by thermal power stations. This reduces combined effectiveness. 9 Recital 5 a (new) (5a) In its resolution of 15 December 2010 on revision of the energy efficiency action plan, the European Parliament called upon the Commission to take into account the measures that would enable the Member States to reach the overall EU real energy efficiency target in 2020 in line with political commitments made PR\ docx 11/67 PE v01-00

12 by the Member States with regard to energy efficiency. That efficiency should be calculated according to a relationship expressed as the dynamics of energy efficiency change that takes account of per capita GDP in these states between the reference year and A calculation method in line with new formulas set out in Article 2, which take account of per capita GDP in the reference period, is proposed for the assessment of the effects of 3x20 by 2020 political decision. 10 Recital 7 (7) Member States are required to achieve a cumulative end-use savings requirement for the entire obligation period, equivalent to 'new' savings of 1.5 % of annual energy sales. This requirement could be met by new policy measures that are adopted during the new obligation period from 1 January 2021 to 31 December 2030 or by new individual actions as a result of policy measures adopted during or before the previous period, but in respect of which the individual actions that trigger energy savings are actually introduced during the new period. (7) Member States are required to achieve a cumulative savings requirement for cumulative primary energy for the entire obligation period, equivalent to 'new' obligations relating to energy savings that are the result of actual improvements in the efficiency of energy conversion, transmission and use. This requirement could be met by using new investment policy measures leading to better energy efficiency adopted for 1 January 2021 to 31 December Energy savings that are spread over (for example linearly) the entire reference period should relate to cumulative primary energy rather than to cumulative end-use savings, which are not always equivalent. Therefore, such savings cannot be calculated using their sales value, which may be different in individual Member States. PE v /67 PR\ docx

13 11 Recital 7 a (new) This approach would make it possible to use CHP technologies better. (7a) The new standards for permissible CO2 emissions in grams per kilowatt hour should be adopted taking account of the overall energy efficiency of the conversion of primary energy contained in fossil fuels into total final energy: heat and electricity; CHP systems should be designed for the 'common' energy, to avoid the need to obtain additional emission allowances. 12 Recital 7 b (new) (7b) Emission standards should take into account the current and potential energy efficiency of an EU Member State's energy mix; they should also take into account the real system for the supply of primary energy of internal origin and imported primary energy, so that the EU emissions trading scheme (EU ETS) could be modified without limiting the competitiveness of countries generating energy from fossil fuels, particularly from coal. PR\ docx 13/67 PE v01-00

14 Primary energy imported to the EU, such as hydrocarbons and coal, should be burdened with the costs of CO2 emission allowances, while their energy efficiency should be corrected by taking account of the energy intensity stemming from their extraction and transport. 13 Recital 7 c (new) (7c) Member States should define the total energy efficiency of their energy mix, i.e. the efficiency in moving from primary energy that they have, through the final energy supplied to the consumer market, to the energy used on that market: in the housing sector, transport and industry, while using numerical conversion rates set out as PEFs in Annex IVa, and taking account of a percentage share of each primary energy constituent in this mix, by adding individual shares of these constituents multiplied by the applicable conversion effectivenesses. Each energy mix is set apart by its conversion effectiveness, which makes it possible to reveal weaknesses of this mix and assess the chances to improve the average energy efficiency of each Member State, i.e. Eśr. = X1 x ɳ1+ X2 x ɳ2 + X3 x ɳ3 +..., where: X - percentage share of any primary energy, ɳ - efficiency of conversion to final energy. 14 Recital 7 d (new) (7d) On the basis of the effectiveness of energy mixes of Member States, the Commission should estimate, taking account of those countries' primary PE v /67 PR\ docx

15 energy consumption percentage share, the average energy efficiency across the entire European Union. It is important to be aware of this relative indicator when shaping the Energy Union policy. 15 Recital 8 (8) Long term energy efficiency measures will continue delivering energy savings after 2020 but in order to contribute to the next Union 2030 energy efficiency target, those measures should deliver new savings after On the other hand, energy savings achieved after 31 December 2020 may not count towards the cumulative savings amount required for the period from 1 January 2014 to 31 December (8) Long term measures to limit cumulative primary energy consumption adopted prior to 2020 will contribute to continued energy savings between 2021 and 2030; however, those savings may not count towards fulfilling outstanding previous (pre-2020) obligations. The new plans for 2030 should analyse and take account of the reasons behind nonfulfilment of 2020 obligations. If the Member States fail to fulfil their energy efficiency obligations, they should state why they failed to fulfil them. 16 Recital 9 (9) New savings should be additional to business as usual, so that savings that would have occurred in any event may not be claimed. In order to calculate the impact of measures introduced only net (9) In order to calculate the real impact of the newly introduced measures, including investment measures, only savings that are a result of measures to deliver energy efficiency should be taken PR\ docx 15/67 PE v01-00

16 savings, measured as the change of energy consumption that is directly attributable to the energy efficiency measure in question, may be counted. To calculate net savings Member States should establish a baseline scenario of how the situation would evolve in the absence of the policy in question. The policy intervention should be evaluated against this defined baseline. Member States should take into account that other policy interventions may be undertaken in the same time frame which may also have an impact on energy savings, so that not all changes observed since the introduction of the policy intervention being evaluated can be attributed to that policy measure only. The actions of the obligated, participating or entrusted party should actually contribute to the achievement of the savings claimed to ensure the fulfilment of the materiality requirement. into account. Member States should establish a baseline scenario of how the situation would evolve given additional savings measures. The actions of the obligated, participating or entrusted party should actually contribute to the achievement of the savings claimed. It is not necessary to complicate the savings issue, by assuming that in any case some previous policy exists in the absence of the new energy policy. This makes it more difficult to calculate savings. It cannot be assumed that there are certain actions referred to by the Commission as normal ones. The question is what actions are referred to by the Commission as normal ones. 17 Recital 9 a (new) (9a) Given the varying effectiveness of cumulative primary energy consumption, the conversion of final energy, i.e. electricity and heat, into primary energy, should not be carried out using the same PEF indicators, as it is not possible to add together absolute values of energy types that are different in quality and that have PE v /67 PR\ docx

17 been generated using different technologies of varying conversion effectiveness. We must strive to make the calculations of future savings more transparent. 18 Recital 12 (12) Improvements to the energy efficiency of buildings should benefit in particular consumers affected by energy poverty. Member States can already require obligated parties to include social aims in energy saving measures, in relation to energy poverty, and this possibility should now be extended to alternative measures and transformed into an obligation while leaving full flexibility to Member States with regard to the size, scope and content of such measures. In line with Article 9 of the Treaty, the Union's energy efficiency policies should be inclusive and therefore also ensure accessibility of energy efficiency measures for energy poor consumers. (12) The amplification of the thermomodernisation of buildings by three times every year and improvements to the energy efficiency of buildings should benefit in particular low-income consumers at risk of energy poverty. Member States can already require obligated parties to include social aims in energy saving measures, in relation to energy poverty, and this possibility should now be extended to alternative measures, strengthened to require a significant share to be implemented as a priority, and transformed into an obligation while leaving full flexibility to Member States with regard to the scope and content of such measures. In line with Article 9 of the Treaty, the Union's energy efficiency policies should be inclusive and therefore also ensure accessibility of energy efficiency measures for energy poor consumers. Or. xm Member States should be advised to introduce provisions that will make it possible to at least treble the scope of the thermo-modernisation of residential buildings. PR\ docx 17/67 PE v01-00

18 19 Recital 12 a (new) (12a) Reacting to daytime and nighttime demand for electricity is an important instrument for improving energy efficiency, since it significantly increases energy saving opportunities for consumers or for third parties delegated by them to make decisions, based on information indicating the possibility of optimising energy consumption when energy is in demand, including at peak times, so as to enable better use of transmission networks and productive resources. Balanced power consumption, which is regulated, among other means, by night and day tariffs, increases energy efficiency. 20 Recital 12 b (new) (12b) Around 50 million households in the Union are affected by energy poverty. Energy efficiency measures in order to obtain a low-cost final energy should therefore be central to any cost-effective strategy to address energy poverty and consumer vulnerability and are complementary to social security policies at the Member State level. Or. xm PE v /67 PR\ docx

19 Energy poverty will be reduced when the prices of final electricity drop as a result of an increase in conversion and transmission effectiveness and when the prices of heat drop as a result of thermo-modernisation. 21 Recital 12 c (new) (12c) The Union's building stock will need to become "nearly zero energy buildings" by 2050, in line with the objectives of the Conference of the Parties of the United National Framework Convention on Climate Change (COP21) held in Paris in December Present building renovation rates are insufficient and buildings owned or occupied by lowincome citizens at risk of energy poverty are the hardest to reach. It is therefore appropriate for Member States to prioritise that group of citizens when adopting measures relating to energy savings obligations, energy efficiency obligation schemes and alternative policy measures, as provided for in this Directive, and to strengthen their efforts to triple thermo-modernisation on an annual basis. Or. xm It should be clearly stated that the efforts made so far on an annual basis are insufficient and should be increased significantly. 22 Recital 13 a (new) PR\ docx 19/67 PE v01-00

20 (13a) The energy balance in Member States' businesses and industries can be improved, building on the principles of the circular economy, by means of the proper use of industrial waste as secondary raw materials, provided that their energy potential will be sufficiently high, and higher than the potential of alternative primary raw materials; products that have been over-processed as industrial waste are characterised by such a high configuration entropy that simple recycling cannot be counted on to produce positive energy efficiency. For example, a simple car tyre recycling does not make sense, as it would require great energy input. It is necessary to move away from the simple recycling in order to use the circular economy right. 23 Recital 13 b (new) (13b) The circular economy policy should be based on the exergy balance, as a criterion for assessing the energy efficiency of using industrial waste as secondary raw materials; the energy potential of highly processed complex products, such as composites or some electronic products, is too low and their configuration entropy too high to be able to speak of positive energy efficiency. PE v /67 PR\ docx

21 For example, a simple composite recycling does not make sense, as it would require great energy input. It is necessary to move away from the simple recycling in order to use the circular economy right. 24 Recital 15 a (new) (15a) Constructing distributed energy generation units reduces transmission losses, and enables flexible adaptation to local consumers' changing energy demand. The efficiency of combined heat and power (CHP) units is %. CHP plants (distributed generation units) that are located close to densely populated areas and equipped with heat accumulators make it possible to generate electricity and heat/chill with great flexibility and efficiency; where: η - efficiency of conversion into final energy, Ep - initial energy, Eel - electricity, Qkog - thermal energy from cogeneration, Qchłodz - cooling energy from cogeneration. Distributed generation, including cogeneration, is a good way to increase conversion efficiency and achieve small transmission losses. PR\ docx 21/67 PE v01-00

22 25 Recital 15 b (new) (15b) The increase in energy efficiency is a direct result of the following steps in the energy generation and conversion processes: efficient conversion of primary energy into final energy, efficient transmission of this energy to consumers in the form of electricity or heat, and its sparing use by end users; the savings effect on the consumer market should not be considered a sole objective of such effectiveness, as this effect may result from unfavourable energy prices. In its proposal the Commission only refers to the savings on the consumer market, while the largest efficiency reserves are hidden in the conversion of primary energy and in the sparing transmission of such energy to this market. 26 Recital 15 c (new) (15c) Consideration should be given to repealing Directive 2003/87/EC of the European Parliament and of the Council 1a (the EU ETS Directive) or to amending its provisions concerning emission limit values that are unfavourable to energy technologies of coal power units if innovative investments are implemented in order to significantly increase the efficiency of cumulative primary energy consumption. PE v /67 PR\ docx

23 Provisions of the EU ETS Directive are dogmatically against coal. 1a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community (OJ L 275, , p. 32) 27 Recital 16 (16) Reflecting technological progress and the growing share of renewable energy sources in the electricity generation sector, the default coefficient for savings in kwh electricity should be reviewed in order to reflect changes in the primary energy factor (PEF) for electricity. Calculations of the PEF for electricity are based on annual average values. The Physical energy content accounting method is used for nuclear electricity and heat generation and the Technical conversion efficiency method is used for electricity and heat generation from fossil fuels and biomass. For non-combustible renewable energy, the method is the direct equivalent based on the Total primary energy approach. To calculate the primary energy share for electricity in CHP the method set out in Annex II of is applied. An average market position is used rather than a marginal one. Conversion efficiencies are assumed to be 100 % for non-combustible renewables, 10 % for geothermal power stations and 33 % for nuclear power stations. Total efficiency for cogeneration is calculated based on the most recent data from Eurostat. As for (16) Reflecting technological progress and the growing share of renewable energy sources in the electricity generation sector, the default coefficient for savings in kwh electricity should be reviewed in order to reflect changes in the primary energy factor (PEF) for electricity. Calculations of the PEF for electricity are based on annual average values. The Physical energy content accounting method is used for nuclear electricity and heat generation and the Technical conversion efficiency method is used for electricity and heat generation from fossil fuels and biomass. For non-combustible renewable energy, the method is the direct equivalent based on the Total primary energy approach. To calculate the primary energy share for electricity in CHP the method set out in Annex II of is applied. An average market position is used rather than a marginal one. Conversion efficiencies are assumed to be 100 % for non-combustible renewables, 10 % for geothermal power stations and 33 % for nuclear power stations. Total efficiency for cogeneration is calculated based on the most recent data from Eurostat. As for PR\ docx 23/67 PE v01-00

24 system boundaries the PEF is 1 for all energy sources. Calculations are based on the most recent version of the PRIMES Reference Scenario. The PEF value is based on the projection for The analysis covers the EU Member States and Norway. The dataset for Norway is based on TSO-E data. system boundaries the PEF is 1 for all energy sources. Calculations are based on the most recent version of the PRIMES Reference Scenario. The PEF value is based on the projection for The analysis covers the EU Member States and Norway. The dataset for Norway is based on TSO-E data. The PEF values are set out in Annex IVa and IVb to this Directive. The value of a PEF factor depends on energy source. These real indicators are required for calculations that are made while moving from useful and final energy to cumulative primary energy defined by the Member States. 28 Recital 16 a (new) (16a) Taking into account that the European Council, in its conclusions of 10 June 2011 on the Energy Efficiency Plan (10709/11), underlined that buildings represent 40 % of the EU's primary energy consumption, which represents 50 % of the final energy, and, in order to enable economic growth and encourage employment in sectors requiring special qualifications, i.e. in the construction sector and in the sector of construction products manufacture, as well as in such professional activities as architecture and urban planning, and advisory services concerning heating and cooling technologies, the Member States should establish a long term strategy in these fields that would extend beyond 2020, by mobilising funds for investments in massive thermo-modernisation of residential and public buildings, as well as funds for the construction of new, zero- PE v /67 PR\ docx

25 carbon houses. From the technical point of view, the potential for increasing the energy efficiency can be used in the easiest way in the housing sector. 29 Recital 17 (17) In order to ensure that the Annexes to the Directive and the harmonised efficiency reference values referred to in Article 14(10) can be updated, it is necessary to extend the delegation of powers granted to the Commission. deleted Updates should always be agreed upon with Member States and the European Parliament. 30 Recital 19 a (new) (19a) Member States whose per capita GDP is lower than the average EU per capita GDP should be able to increase the consumption of primary energy, provided that its conversion into final energy, its further transmission and distribution, as well as useful savings on the consumer market takes into account a significant increase in energy efficiency at each stage of a technological process consisting in the flow of released primary energy PR\ docx 25/67 PE v01-00

26 stream. The standards concerning usable energy consumption should be balanced in all Member States of the EU. 31 Recital 19 b (new) (19b) Calculation of the actual efficiency gains in a physical sense involves various large economic operators: energy generators, including power plants and CHP plants, transmission network distributors and additionally the consumer market, which is the last link in the chain of energy consumption, in line with the formula set out in Article 2(6) and (6a) of Directive 2012/27/EU, as amended by this Directive. A formula that makes it possible to calculate the primary energy consumption efficiency is incorporated into the definition. 32 Recital 19 c (new) (19c) In view of the uneven distribution of generation capacity in the EU, overall energy efficiency can be increased by importing final energy from third countries; therefore, a need arises for EU policies that result not only in regulating PE v /67 PR\ docx

27 the trade in primary energy, which entails, inter alia, the construction of gas and oil pipelines, but also the import of final energy in the border areas. Importing final energy e.g. from neighbouring third countries may result in higher energy efficiency than importing energy from more distant EU areas. 33 Article 1 paragraph 1 point 1 Article 1 paragraph 1 1. This Directive establishes a common framework of measures to promote energy efficiency within the Union in order to ensure that the Union s % headline targets and its % binding headline targets on energy efficiency are met and paves the way for further energy efficiency improvements beyond those dates. It lays down rules designed to remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy, and provides for the establishment of indicative national energy efficiency targets and contributions for 2020 and 2030.; 1. This Directive establishes a common framework of measures to promote energy efficiency within the Union in order to ensure that the Union s % headline targets in relation to the reference year and its % binding targets on energy efficiency are met and paves the way for further efficiency improvements beyond It lays down rules designed to remove barriers in the energy market and enhance its functioning by increasing the primary energy consumption efficiency, improving the supply of final energy and by consuming it effectively afterwards; to this end, it provides for the establishment of indicative national energy efficiency targets, the contributions to which will together constitute the overall EU target for 2020 and Member States should, before preparing primary energy savings plans, define energy efficiency of their energy mix, using PEF values set out in Annex IVa. PR\ docx 27/67 PE v01-00

28 The energy efficiency of the Member States energy mix, expressed as primary energy consumption efficiency, is based on the efficiency of generation, transmission and consumption, while the conversion of final energy into primary energy is done using PEF multiplying factors. 34 Article 1 paragraph 1 point 1 a (new) introductory part point a (new) Article 2 paragraph 1 point 1 Present text (1) energy means all forms of energy products, combustible fuels, heat, renewable energy, electricity, or any other form of energy, as defined in Article 2(d) of Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics [1] (1a) Article 2 shall be amended as follows: (a) point 1 is replaced by the following: (1) energy means a scalar physical quantity that describes a structural and kinetic state of material systems (matter) that may interact with each other under external influences, leading to their new structural and kinetic state of equilibrium, while the amount of work done and the dissipative mechanical and thermal effect depends on the intensity of such transition. While transforming from one state into another, the energy is not destroyed; The current definition of energy is considered too imprecise. 35 Article 1 paragraph 1 point 1 a (new) point b (new) Article 2 paragraph 1 point 1 a (new) PE v /67 PR\ docx

29 (b) the following point shall be added: (1a) primary energy means the energy of electromagnetic waves, including the energy of solar radiation and mechanical energy, wind and water energy, including tidal energy and chemical energy that is contained in fossil fuels and raw materials, as well as potential energy contained in the Earth s crust in the form of mechanical stresses released during their relaxation, geothermal energy and nuclear energy contained in fissile elements or released during thermonuclear fusion; it can be divided into two groups of energy: - non-renewable energy, i.e. energy contained in fossil fuels and nuclear energy; - renewable energy, i.e. solar radiation, wind and tidal energy, as well as energy contained in the Earth s crust and energy contained in biofuels; The definition of primary energy encompasses all forms of energy of endogenous, extraterrestrial and exogenous origin generated inside our planet. 36 Article 1 paragraph 1 point 1 a (new) point c (new) Article 2 paragraph 1 point 1 b (new) (c) the following point shall be added: (1b) usable energy means the energy of optical radiation and electromagnetic energy, thermal energy, as well as electrical and mechanical energy used in PR\ docx 29/67 PE v01-00

30 This type of energy is used on the consumer market. technical installations and machines performing certain work, and for heating or cooling in the housing sector, which is the effect of converting final electricity and final heat and energy supplied in the form of fuels, including fuels for propelling vehicles; 37 Article 1 paragraph 1 point 1 a (new) point d (new) Article 2 paragraph 1 point 1 c (new) (d) the following point shall be added: (1c) primary energy factor (PEF) means a coefficient (a multiplying factor), i.e. a dimensionless numerical value that makes it possible, through multiplication, to calculate the amount of primary energy based on the measured amount of final energy broken down into various sources of such final energy in the form of electricity or heat, and to calculate cumulative primary energy in order to reflect energy losses in conversion and transmission; The primary energy factor (PEF) is used to calculate primary energy that constituted the first link in the chain of conversions into final energy. Final energy multiplied by this factor equals primary energy. PE v /67 PR\ docx

31 38 Article 1 paragraph 1 point 1 a (new) point e (new) Article 2 paragraph 1 point 1 d (new) (e) the following point shall be added: (1d) the national primary energy factor means a quotient that expresses the ratio between primary energy consumed by a given Member State and final energy that is generated and consumed there; The national primary energy factor varies between EU Member States and ranges from 1.10 and 1.20 to 1.60 and It is determined by the effectiveness of primary energy consumption of these states. 39 Article 1 paragraph 1 point 1 a (new) point f (new) Article 2 paragraph 1 point 1 e (new) (f) the following point shall be added: '(1e) 'the chain of energy conversions' means a technological process that begins with the release of primary energy and its transmission to the market in the form of final energy, where it is converted by a consumer into usable energy (work)': final heat flows spontaneously from material systems with higher temperatures to those with lower temperatures;' PR\ docx 31/67 PE v01-00

32 The longer the chain of energy conversions, the lower the total energy efficiency, while the direction of heat flow, provided that it is not forced for example due to the use of heat pumps, is always one-directional: from systems with higher temperatures to those with lower temperatures. 40 Article 1 paragraph 1 point 1 a (new) point g (new) Article 2 paragraph 1 point 2 Present text '(2) 'primary energy consumption' means gross inland consumption, excluding nonenergy uses;' g) point 2 is replaced by the following: '(2) 'primary energy consumption' means cumulated gross inland consumption, including energy used for the purposes of generating primary energy and transport, including also the transport from third countries of fuels required to generate final energy, excluding non-energy uses;' The current definition is not precise and omits energy used for the purposes of generating it and supplying gas, oil, coal etc. to the user. 41 Article 1 paragraph 1 point 1 a (new) point h (new) Article 2 paragraph 1 point 3 Present text '(3) 'final energy consumption means all energy supplied to industry, transport, households, services and agriculture. It excludes deliveries to the energy transformation sector and the energy h) point 3 is replaced by the following: '(3) 'final energy consumption' means the consumption of electricity supplied to the consumer market, which is required by industry and transport, as well as energy supplied to households, services and PE v /67 PR\ docx

33 industries themselves;' agriculture; this consumption depends on the total power available for dispatching, including active and reactive power, while supplying such energy;' The power available for dispatching should always exceed the demand due to its uneven consumption on the market, in order to avoid blackout. Generally, it exceeds the demand by 20 percent. 42 Article 1 paragraph 1 point 1 a (new) point i (new) Article 2 paragraph 1 point 4 Present text '(4) 'energy efficiency' means the ratio of output of performance, service, goods or energy, to input of energy;' (i) point 4 is replaced by the following: '(4) 'energy efficiency' means the ratio of final energy to primary energy or usable energy to final energy, which is expressed as a percentage in Annex Va, whereas total effectiveness may constitute a product of efficiencies within three individual stages of the chain of conversions, which are mentioned above, while the total efficiency may constitute a sum of individual efficiencies in the chain of conversions;' Energy efficiency is often expressed as a quotient of final energy to primary energy, in the form of a fraction smaller than 1, which, after multiplying it by 100, means effectiveness at any given moment, expressed as a percentage. 43 Article 1 paragraph 1 point 1 a (new) point j (new) PR\ docx 33/67 PE v01-00

34 Article 2 paragraph 1 point 6 Present text '(6) 'energy efficiency improvement' means an increase in energy efficiency as a result of technological, behavioural and/or economic changes;' (j) point 6 is replaced by the following: '(6) 'primary energy consumption efficiency increase' means a relative indicator for assessing the growth dynamics of such efficiency due to technical or economical activities during the research period, which is expressed by the formula: where: Epp - initial primary energy Epk - final primary energy;' This definition concerns the growth dynamics, i.e. the behaviour (an increase or a decrease) of this dimensionless and relative indicator over time. 44 Article 1 paragraph 1 point 1 a (new) point k (new) Article 2 paragraph 1 point 6 a (new) (k) the following point shall be added: '(6a) 'nominal adjusted increase in energy efficiency' means a relative indicator for assessing the dynamics of such increase during the research period, in relation to national GDP per capita, expressed by the formula: PE v /67 PR\ docx

35 where: Epk - final primary energy Epp - initial primary energy PKBp - per capita GDP for a given country at the beginning of the measurement PKBk - per capita GDP for a given country at the end of the measurement;' This definition concerns a relative indicator that does not directly measure an increase in effectiveness in terms of physics; it is rather a nominal indicator that takes account of per capita GDP changes. 45 Article 1 paragraph 1 point 1 a (new) point l (new) Article 2 paragraph 1 point 10 Present text '(10) 'total useful floor area' means the floor area of a building or part of a building, where energy is used to condition the indoor climate;' (l) point 10 is replaced by the following: '(10) 'total useful space' means the cubic capacity of a building or part of a building, where energy is used to regulate the indoor thermal conditions;' It is more logical to make thermal conditions dependent not on the floor area, but rather on the cubic capacity. 46 Article 1 paragraph 1 point 1 a (new) point m (new) Article 2 paragraph 1 point 16 PR\ docx 35/67 PE v01-00

36 Present text '(16) 'participating party' means an enterprise or public body that has committed itself to reaching certain objectives under a voluntary agreement, or is covered by a national regulatory policy instrument; (m) point 16 is replaced by the following: '(16) 'participating party' means an enterprise or public body that has committed itself to reaching certain objectives in the area of energy efficiency, including conversion efficiency, under a voluntary agreement, or is covered by a national regulatory policy instrument;' The amendment consists in making the parties objective more precise. 47 Article 1 paragraph 1 point 1 a (new) point n (new) Article 2 paragraph 1 point 20 Present text '(20) 'energy distributor' means a natural or legal person, including a distribution system operator, responsible for transporting energy with a view to its delivery to final customers or to distribution stations that sell energy to final customers;' (n) point 20 is replaced by the following: '(20) 'energy distributor' means a natural or legal person, including a distribution system operator, responsible for managing the power and transporting the processed primary energy with a view to its delivery, as final energy, to customers, including to stations and distribution substations that sell energy to its final users;' The amendment aims to expressly indicate the direction of energy stream flow. 48 Article 1 paragraph 1 point 1 a (new) point o (new) PE v /67 PR\ docx

37 Article 2 paragraph 1 point 23 Present text '(23) 'final customer' means a natural or legal person who purchases energy for own end use; (o) point 23 is replaced by the following: '(23) 'final customer' means a natural or legal person who purchases final energy for own end use in order to use it by the way of transformation into energy and useful work;' The amendment consists in specifying the type of energy supplied to the consumer market. 49 Article 1 paragraph 1 point 1 a (new) point p (new) Article 2 paragraph 1 point 28 Present text '(28) 'smart metering system' or 'intelligent metering system' means an electronic system that can measure energy consumption, providing more information than a conventional meter, and can transmit and receive data using a form of electronic communication;' p) point 28 is replaced by the following: '(28) 'smart metering system' or 'intelligent metering system' means an electronic system that can measure energy consumption, providing more information in real time than a conventional meter, and can transmit and receive data using a form of electronic communication;' Only current information, i.e. information given in real time allows to intelligently plan power utilisation. 50 Article 1 paragraph 1 point 1 a (new) point q (new) PR\ docx 37/67 PE v01-00