Guidance note on the implementation of the requirements for nearly zero-energy buildings under Directive 2010/31/EU on the energy performance of

Transcription

1 Guidance note on the implementation of the requirements for nearly zero-energy buildings under Directive 2010/31/EU on the energy performance of buildings

2 TABLE OF CONTENTS 1. Introduction Legal and policy context Scope of the obligation Obligation to ensure that all new buildings become NZEB and 2021 targets Obligation to support the renovation of existing buildings into NZEBs The NZEB definition- Application in practice What is the energy performance of a nearly zero-energy building? How do renewable energy sources contribute? Relationship between cost-optimal and NZEB levels When is a NZEB level of energy performance too low to be considered a NZEB? Obligation upon the Commission to evaluate and report on progress NZEB definitions Policies and measures for the promotion of NZEBs- tackling the existing building stock Reporting on Article 13(4) of Directive 2009/28/EC Concluding remarks... 17

3 1. INTRODUCTION Buildings are central to the EU's energy efficiency policy, as nearly 40% 1 of final energy consumption and 36% of greenhouse gas emissions is in houses, offices, shops and other buildings. Improving the energy performance of Europe's building stock is crucial, not only to achieve the EU's 2020 targets but also to meet the longer term objectives on climate and energy as laid down in the Energy Efficiency Communication 2 and in the low carbon economy roadmap Following the introduction of efficiency requirements in national building codes, new buildings today consume only half as much as typical buildings from the 1980s. In this framework, the Energy Performance of Buildings Directive (the 'EPBD' or 'the Directive') is the main legislative instrument at EU level to improve energy performance in buildings. The Energy Efficiency Communication estimated that the efforts to ensure proper transposition and implementation of the EPBD could secure an additional 15 Mtoe of savings by Full implementation and enforcement of existing energy legislation is recognised as the first priority in establishing the Energy Union 5. The Energy Union Communication restates the huge potential for energy efficiency gains that remains in buildings. Increasing the energy performance requirements for new and existing buildings will reduce the EU's energy import bills, reinforce energy security and cut energy costs for households and businesses. Article 9 of the EPBD on nearly zero buildings ('NZEBs') is a key provision targeting new private and public buildings, as well as the refurbishment of existing buildings towards NZEBs. This note aims to provide further guidance to Member States on how to apply Article 9 of the EPBD and related provisions and achieve its objectives. [The present note states the views of the Commission services, does not alter the legal effects of the Directive and is without prejudice to the binding interpretation of Article 9 as provided by the Court of Justice]. 2. LEGAL AND POLICY CONTEXT The 2010 EPBD sets the framework to improve the energy efficiency of EU buildings. The EPBD requires Member States to establish minimum requirements for the energy performance of newly constructed buildings and existing buildings undergoing major renovations. It further sets specific targets for all new buildings by the end of the decade to have nearly zero or very low energy needs. Over time, the Directive has become the centre piece of the comprehensive EU legislation on buildings, linked to EU acts on building systems and products, energy efficiency and renewable energy sources. In 2012, the Energy Efficiency Directive 6 (EED) introduced important building-related provisions, tackling for the first time the building stock as a whole through long-term building renovation strategies, setting a minimum annual renovation rate for central government buildings and setting requirements for public procurement for products, services and buildings In See "Energy, transport and environment indicators, 2012 edition", European Commission. For the purpose of this estimate the final energy consumption for the household and services sectors has been combined. It has to be noted that this includes, for example, electricity consumption for appliances but excludes energy consumption in industrial buildings. COM (2014) 520 final COM (2011) 112 COM (2014) 520 final Energy Union Package COM (2015)80 final Directive 2012/27/EU, OJ L315 of , p.1.

4 with high energy-efficiency performance. The provisions on energy saving obligation schemes and alternative policy measures also have impact on the energy efficiency of buildings, as energy saving obligations schemes are one of the means for mobilizing finance for energy efficiency measures in buildings. Furthermore, Member States should evaluate the barriers and measures which could prejudice the adoption of energy efficiency measures and, when necessary, remove such barriers, including on split incentives 7. Before the adoption of the EPBD, Directive 2009/28/EC 8 on the promotion of the use of energy from renewable sources (hereafter RES Directive) imposed on Member States the obligation to introduce in their building regulations and codes appropriate measures in order to increase the share of all kinds of energy from renewable sources in the building sector. Such measures are complementary to the NZEB requirements in the EPBD, as the nearly zero or very low amount of energy consumed in NZEBs is to be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby. 3. SCOPE OF THE OBLIGATION Two mechanisms introduced by the Directive will be decisive for addressing the efficiency of the buildings sector in the EU. The principle of NZEBs is accompanied by clear targets to make very high energy performance the norm for all new buildings by 31 December New buildings occupied and owned by public authorities must meet this requirement two years earlier. The second pillar of the EPBD is a benchmarking system (the principle of 'cost-optimality ) to improve the level of ambition of the energy performance requirements contained in the national or regional building codes and keep them under regular review. Through its Article 9, the EPBD builds on the conclusion that the cost optimal level of energy performance requirements and nearly zero energy performance will converge by the end of Besides the 2019 and 2021 NZEB targets, the EPBD requires putting in place support policies to refurbish the existing building stock to the same "nearly zero-energy" levels. This obligation is complemented by the strategies to mobilise investment in renovation of the building stock that Member States need to establish in line with the EED. Thus, the objective to move towards a building stock of nearly zero-energy levels should become a guiding principle not only for new but also for existing buildings. 4. OBLIGATION TO ENSURE THAT ALL NEW BUILDINGS BECOME NZEB AND 2021 TARGETS Article 9(1) of the EPBD requires Member States to "ensure that: (a) (b) by 31 December 2020, all new buildings are nearly zero-energy buildings; and after 31 December 2018, new buildings occupied and owned by public authorities are nearly zero-energy buildings." The progressive improvement of the energy efficiency of buildings to nearly zero energy buildings is one of the core requirements of the Directive. National legislation transposing the requirements of Article 9(1) should contain provisions, measures or policies to ensure that by 7 The split incentive refers to a situation where the owner of a building makes an investment to improve the energy performance of the building, but the tenant gets the resulting financial savings from reduced energy bills. 8 OJ L 140, , p. 16

5 31 December 2020 all new buildings will be nearly-zero energy buildings. The same applies for new public buildings to be nearly-zero energy buildings by 31 December Member States must ensure that the requirements of Article 9(1)(a) are met by 31 December 2020 and 31 December 2018 for Article 9(1)(b). Although these dates are in the future, under Article 28(1) second subparagraph of the Directive it is clear that the deadline for transposition of Article 9 was 9 January 2013 at the latest. By this date, the NZEB targets needed to be reflected in national transposition measures. Having these targets set in the national legislation creates transparency about the political goals and gives visibility to the economic operators for the future requirements on the energy performance of new buildings. In addition, the progress towards the development of nearlyzero buildings should be backed up by concrete legal provisions which will ensure legal certainty for economic operators and other stakeholders, such as clear minimum requirements for NZEBs set well in advance of their actual application. Furthermore, Article 9(1) requires Member States to ensure that by the relevant dates, all new buildings are NZEBs. This implies that buildings where construction is finished after respectively 31 December 2018 and 31 December 2020 already comply with the NZEB requirements. It is therefore necessary to make sure that buildings for which the permit is issued before the target dates in Article 9(1) but where a completion date is foreseen in 2019 (public buildings) or 2021 (rest), will comply with the NZEB requirement. Minimum energy performance requirements and nearly-zero requirements have to be assessed at the date when the building completion is projected. For instance if the construction of a building starts in 2015 and is foreseen for to be completed in 2017, the minimum requirements to be applied to such a building will be the minimum requirements applicable in Similarly, if completion is foreseen for 2021, this building should be a NZEB. Member States may fulfil these requirements, for example, by introducing in building permits a clear date for the completion of construction and the minimum energy performance requirements to be complied with on that date. Another possibility would be to issue building permits with short validity; or 'adaptive' building permits, which contain different minimum energy performance requirements depending on the date of the achievement. Furthermore, Member States must ensure that if new constructions do not correspond to the energy performance requirements, adequate sanction mechanisms are set. As an additional obligation under Article 9(1), Member States must draw up national plans for increasing the number of NZEBs, which may include targets differentiated according to the category of building. This differentiation may be related to the more demanding targets placed on new buildings occupied and owned by public authorities. The minimum elements that must be included in the national plans are established in Article 9(3). Article 9(3) states that "The national plans shall include, inter alia, the following elements: (a) (b) the Member State's detailed application in practice of the definition of nearly zeroenergy buildings, reflecting their national, regional or local conditions, and including a numerical indicator of primary energy use expressed in kwh/m 2 per year.; intermediate targets for improving the energy performance of new buildings, by 2015 ; information on the policies and financial or other measures (..) including details of energy from renewable sources in new buildings and existing buildings undergoing major renovation in the context of Article 13(4) of Directive 2009/28/EC and Articles 6 and 7 of this Directive."

6 To facilitate the provision of this information, the Commission made available to the Member States a non-obligatory template, whose use was recommended to facilitate the comparability and analysis of the plans OBLIGATION TO SUPPORT THE RENOVATION OF EXISTING BUILDINGS INTO NZEBS The EPBD requirements on NZEBs apply also to existing buildings. Article 9(2) of the EPBD requires Member States to, "following the leading example of the public sector, develop policies and take measures such as the setting of targets in order to stimulate the transformation of buildings that are refurbished into NZEBs, and inform the Commission thereof in their national plans ". Article 9(2) aims therefore at increasing renovation depth by setting national support policies to refurbish existing buildings to the same "nearly zero-energy" levels establish in line with Article 9(1). The obligation in Article 9(2) of the EPBD is complemented by national building strategies under Article 4 of the EED, which should result in increased renovation rates through mobilising finance and investments in building renovation. The wording of the EPBD makes it clear that there should be only one national definition of NZEB, which existing buildings should be renovated to become. "Refurbishment into NZEB" therefore means a refurbishment of a magnitude that allows the energy performance requirements of a NZEB definition to be met. To appreciate the provisions of Article 9(2) of the EPBD and its relationship with Article 4 of the EED, the terms 'refurbishment into NZEB'; 'cost-effective deep renovation'; 'major renovation'; 'replacement or retrofitting of building elements' and 'substantial refurbishment' require further clarification. These terms have different meanings and relate to different obligations. 'refurbishment into NZEB' Article 9(2) refers to "buildings refurbished into nearly zero-energy buildings" Member States must determine the nearly zero energy performance requirements, in accordance with the requirements of Article 2(2), which defines "nearly zero-energy building" as a building that has a very high energy performance, as determined in accordance with Annex I. This means that Member States may differentiate between the nearly zero levels depending on the building type (ex. single-family houses of different types, apartment blocks, offices etc.). However, Member States cannot determine different 'nearly zero' requirements depending on whether the building is new or existing, as could be the case for the minimum energy performance requirements of Article 4 and 7 of the EPBD. Thus, the minimum 'nearly zero' energy levels set for new buildings should be the levels targeted for the refurbishment into NZEBs. The policy measures developed pursuant to Article 9(2) target the energy performance level of existing buildings and do not necessarily imply an amount of energy savings to be achieved. For instance, relatively recent and energy performing buildings which are refurbished up to nearly zero levels will achieve less energy savings than older less performing buildings refurbished up to the same level. However, this does not prevent Member States to impose nearly zero levels for the refurbishment both categories of buildings. 9 The templates as filled in by the Member States are available from this website

7 'cost-effective deep renovation' Pursuant to Article 4 of the EED, Member States hve to elaborate long-term strategies for mobilising investment in the renovation of residential and commercial buildings addressing cost-effective deep renovations. In accordance with recital 16 of the EED, cost effective deep renovations lead to a refurbishment that reduces both the delivered and final energy consumption of a building by a significant percentage compared with the pre renovation levels leading to a very high energy performance. The Commission services have indicated 10 that Member States should aim to encourage deep renovations of buildings leading to significant (typically more than 60%) efficiency improvements. This means that deep renovations deliver energy efficiency improvements of a certain magnitude. In other words, the term refers to the depth or intensity of the renovation works and their outcome (level of resulting energy savings). This is also in line with Article 5 of the EED according to which, priority is given to the renovation of the poorest energy performing public buildings, where cost-effective and technically feasible. Member States policy measures addressing cost-effective deep renovations complement the obligation for Member States to ensure that existing buildings reach their cost-optimal energy performance levels fixed in the national legislation when undergoing major renovations. The latter obligation applies without distinction depending on the actual amount of the energy savings. The former policy measures should combine incentives for market operators to decide to renovate (funding, information campaigns etc.). However, if a projected deep renovation would also qualify as major renovation in the sense of the EPBD, the energy savings level should be at least equivalent to the minimum energy performance requirements set in accordance with Article 7 of the EPBD. The Member States' long-term strategies for mobilising investment in the renovation of the national building stock under Article 4 of the EED must encompass policies and measures to stimulate cost-effective deep renovations of buildings, including staged deep renovations. Given that these strategies must be prepared/reviewed every three years, as part of Member States National Energy Efficiency Action Plans, Member States are advised to identify the necessary funding 11 (see Article 4( )) as a way of delivering the policies and measures required under Article 4 of the EED and Article 9(2) of the EPBD, and gradually transform existing buildings that are being refurbished into NZEBs. Whilst nearly zero-energy consumption is to become the norm for new buildings by 2020, the complete transformation of the existing stock into NZEBs can only be aimed at with a 2030/2050 perspective. Renovation strategies and national plans on NZEBs are needed to support such longer-term horizon and ensure the right investment choices are made. 'major renovation' Article 2(10) of the EPBD provides a definition of major renovation. Major renovation refers to any type of buiding works of a certain cost or magnitude. When such renovation of a house or apartment has a cost higher than 25% of the value of the building or concerns more than 25% of the surface of the building envelope 12 it is 'major'-, it acts as a trigger for energy SWD (2013)143 final See EEFIG report ( Member States should apply one of both options.

8 renovation and the application of minimum energy efficiency requirements, resulting in an upgraded energy performance of the building 13. As explained above, the distintion between the mechanisms of Article 4 and 7 of the EPBD and of Article 4 of the EED is that minimum requirements should always be met in case of a major renovation, unless this is not technically or economically feasible. Taken into account the fact that Member States shall have already cost-optimal levels of their minimum energy performance requirements, there should be no or very exceptional derogations from this requirement. Whether a policy measure for incentivising major renovations would also be considered as falling in the scope of Article 4 of the EED and in the end be considered a deep (energy) renovation would depend in particular on the starting point, i.e. the energy performance levels pre-renovation. The building elements affected by the renovation will also have an influence on the resulting energy performance. Deep renovation levels would be more likely to be achieved when they cover the roof, or façade, etc. 'replacement or retroffiting of building elements' In accordance with Articles 4 and 7 of the EPBD, Member States have to ensure that minimum energy performance requirements are reached for new buildings and in case of a major renovation of a building 14. Such requirements can be different for new buildings and for major renovation, but are always calculated on the building level (e.g. 50 Kwh/m²/an). In addition, Member States have to apply minimum requirements for building elements and apply these requirements when such building elements are replaced or retrofitted and have significant impact on the energy consumption (e.g. specific U factor for heat loss of windows), and this independently of whether there is a major renovation or not. The second paragraph of Article 7 states that the requirements can be applied additionally or alternatively to the renovated building elements. This option allows Member States either to: - Apply, in case of a major renovation, requirements to the renovated building element (ex. 50 Kwh/m²/an and specific U factor for heat loss of windows), independently of whether such building elements have significant impact on the energy consumption; or - Apply requirements in case of major renovation which target the renovated building elements (ex. U values etc. for all building elements which allow to achieve the overall energy performance for major renovation of 50Kwh/m²/an) This flexibility in application does not limit the primary obligation for Member States to ensure that the cost optimal level for the building as a whole is met. 'substantial refurbishment' The EED defines 'substantial refurbishment' as a refurbishment whose cost exceeds 50% of the investment cost for a new comparable unit. In other words, substantial refurbishment is a renovation of larger implications than a major renovation. Like major renovation, the definition of 'substantial refurbishment' is based on the magnitude of (any) renovation works. This definition is linked the provisions on heating and cooling of the EED and applies in Member states must set minimum energy performance requirements for buildings that undergo a major renovation with the view to achieving cost-optimal levels. Member states must take all necessary measures to ensure that when a building undergoes a major renovation these minimum energy performance requirements are met. When technically, functionally and economically feasible

9 particular for heat generation installations. Thus, this term does not have any implication on policy measures on the building stock in general.. 6. THE NZEB DEFINITION- APPLICATION IN PRACTICE The definition of NZEB established in Article 2(2) of the EPBD explains that an NZEB means a building that has a very high energy performance, as determined in accordance with Annex I. The nearly zero or very low amount of energy required should be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby. Article 2(2) has two well differentiated parts: The first part of the Article establishes energy performance as the defining element that makes a building a NZEB. This energy performance has to be very high and determined in accordance with Annex I of the EPBD. The second part of the definition provides guiding principles to achieve this very high performance by covering the resulting low amount of energy to a very significant extent by energy from renewable sources. Energy from renewable sources produced on-site or nearby is mentioned in this regard. While the EPBD sets this framework definition of NZEBs, the detailed application in practice of that definition (e.g. what is a "very high energy performance" and what would the recommended significant contribution of energy from renewable sources be) is the responsibility of the Member States when they transpose the Directive into their national legal systems. Nevertheless, the concepts of 'nearly zero' or 'very low amount' of energy introduced by the EPBD provide indications as to the extent and limits of Member States discretion What is the energy performance of a nearly zero-energy building? The Member State s detailed application in practice of the definition of nearly zero-energy buildings needs to include a numerical indicator of primary energy use expressed in kwh/m 2 per year (in accordance with Article 9(3)(a)). Such primary energy use needs to be "nearly zero or very low". The energy performance of a building is defined in Article 2(4) of the EPBD as "the amount of energy needed to meet the energy demand associated with a typical use of the building which includes, inter alia, energy used for heating, cooling, ventilation, hot water and lighting". This further detailed in the common general framework to determine the energy performance of a (nearly zero-energy) building is established in Article 3 and Annex I of the EPBD. Besides the thermal characteristics of the building envelope and its elements, Recital 9 recognises the increasingly important role of technical building systems such as heating and air-conditioning installations, build-in lighting and domestic hot water supply as well as the application of energy from renewable sources. Building design including natural light, passive heating and cooling elements (which use building design to harness energy), shading and indoor climatic conditions and air quality are factors of increasing importance. All these elements need to be included in the calculation of the energy performance of the building. Annex I establishes in points 1. and 2.that the energy performance of a building must be expressed in a transparent manner and must include an energy performance indicator and a numeric indicator of primary energy use, based on primary energy factors per energy carrier, which may be based on national or regional

10 annual weighted averages or a specific value for on- site production. The methodology for calculating the energy performance of buildings should take into account European standards and shall be consistent with relevant Union legislation, including Directive 2009/28/EC. 3. The methodology shall be laid down taking into consideration at least the following aspects: (a) the following actual thermal characteristics of the building including its internal partitions: (i) thermal capacity; (ii) insulation; (iii) passive heating; (iv) cooling elements; and (v) thermal bridges; (b) heating installation and hot water supply, including their insulation characteristics; (c) air-conditioning installations; (d) natural and mechanical ventilation which may include air-tightness; (e) built-in lighting installation (mainly in the non-residential sector); (f) the design, positioning and orientation of the building, including outdoor climate; (g) passive solar systems and solar protection; (h) indoor climatic conditions, including the designed indoor climate; (i) internal loads. 4. The positive influence of the following aspects shall, where relevant in the calculation, be taken into account: (a) local solar exposure conditions, active solar systems and other heating and electricity systems based on energy from renewable sources; (b) electricity produced by cogeneration; (c) district or block heating and cooling systems; (d) natural lighting The end objective is to determine the annual overall energy use in primary energy, which includes energy use for heating, cooling, ventilation, hot water and lighting. Regulation (EU) No 244/2012 establishes a methodology framework for calculating costoptimal levels of minimum energy performance requirements. The Regulation and its accompanying guidelines 15 provide useful guidance on how to calculate the energy performance of a building (see table in page 10 of the guidelines) /C 115/01.

11 Under Annex I(3) to the Regulation, the calculation of energy performance involves first the calculation of final energy needs for heating and cooling, then the final energy needs for all energy uses, and thirdly the primary energy use. That means that the 'direction' of the calculation is from the needs to the source (i.e. from the building s energy needs to the primary energy). Electrical systems (such as lighting, ventilation, auxiliary) and thermal systems (heating, cooling, domestic hot water) are considered separately within the building. Under energy consumption, there are two subcategories: delivered energy (electricity, fossil fuel, other (biomass, district heating and cooling). Delivered energy is energy, expressed per energy carrier, supplied to the technical building systems to satisfy the different uses (heating, cooling, ventilation, DHW, lighting, appliances); and primary energy: energy that has not been subjected to any conversion or transformation process. Delivered energy includes e.g. electric energy drawn from the grid, gas from the grid, oil or pellets (all with their respective primary energy conversion factors) transported to the building for feeding the buildings technical systems. On-site energy production using locally available renewable energy sources shall be deducted from the primary energy demand and delivered energy. Energy generation at the building site, may be energy from renewable sources or co-generation, with the subcategories thermal energy from RES (e.g. thermal solar collectors); electrical energy generated in the building and used onsite; and electrical energy generated in the building and exported to the market.

12 In Annex I, It is also indicated that primary energy factors used for the determination of the primary energy use 16 may be based on national or regional yearly average values and may take into account relevant European standards. In other words, under the EPBD Member States can use their own national PEF to calculate building energy performance How do renewable energy sources contribute? Article 2(2) of the EPBD also requires that the very low amount of energy required by NZEB "should be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby. This would contribute to increasing the use of energy from renewable sources in the buildings sector, as underlined by recitals e.g. 3, 5 and 6. The NZEB definition is consistent with the obligations introduced by the RES Directive where under article 13(4) Member States must increase the share of energy from renewable sources in new buildings, through the use of their Building Codes. This obligation was reinforced with the requirements on nearly zero-energy buildings in the EPBD. The national plans to stimulate the transformation of buildings into NZEBs under Art 9(2) of the EPBD should include as an element the increase of energy from renewable sources (9)3.c).In addition Article 13(6) of the RES Directive requires that Member States promote the use of renewable energy heating and cooling in their building codes and regulations. The RES Directive provides a definition of "energy from renewable sources" in its Article 2(a) which covers energy from renewable non-fossil sources namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases. The EPBD refers to renewable energy sources also in Articles 6 and 7 and their requirements to consider high-efficiency alternative systems such as decentralised energy supply systems based on energy from renewable sources, heat pumps, cogeneration, or district or block heating or cooling, particularly where it is based entirely or partially on energy from renewable energy sources. This requirement is stronger on new buildings, where an analysis of alternative systems must be carried out before construction starts. Recital 15 explains the underlying logic, which is to support the application of alternative energy supply systems that are not generally explored to their full potential. In this regard, recital 15 makes clear that alternative energy supply systems should be considered for new buildings, regardless of their size, pursuant to the principle of first ensuring that energy needs for heating and cooling (and domestic hot water) are reduced to cost-optimal levels. It seems therefore that the first focus needs to be setting sufficiently ambitious minimum energy performance requirements (at least at cost-optimal level) and from that level onwards assess alternative energy supply systems, including those based on energy from renewable sources. Recital 25 further reinforces the importance of addressing the energy performance of buildings. Acknowledging the rise in the number of air-conditioning systems leading to higher electricity costs at peak load times and energy balancing challenges, priority should be given 16 In the context of energy efficiency policy implementation, a so-called Primary Energy Factor (PEF) has been used to transform electricity consumption into primary energy consumption. The PEF accounts for the total primary energy use of the building, i.e. including the energy system, distribution and conversion losses, etc. Directive 2012/27/EU on energy efficiency (OJ L 315, , p. 1.) establishes in Annex IV a default coefficient of 2.5 to be applied by Member States when transforming electricity savings into primary energy savings.

13 to strategies which enhance the thermal performance of buildings, particularly during the summer period. To that end, there should be focus on measures which avoid overheating, such as shading and sufficient thermal capacity in the building construction, and further development and application of passive cooling techniques, primarily those that improve indoor climatic conditions and the micro-climate around buildings. This is coherent with the objective of the Directive to enhance the energy performance of buildings. Therefore, nearly zero-energy should be achieved above all through energy efficiency measures. At the same time, the provisions of the Directive naturally drive the use of renewable energy sources, notably on-site as the energy produced onsite must be deducted from the primary energy demand and delivered energy. The guidelines accompanying the Delegated Regulation make clear that "RES-based solutions might not solely be linked to achieving the nearly zero-energy target". In fact renewables are needed not so much because they are strictly required by Article 9 (which makes a recommendation and leaves large flexibility to MS in this regard), but because when placed onsite they will reduce the energy needs and make easier the transition to nearly zero-energy levels. The cost-optimal methodology allows Member States to locate the potential areas for NZEB buildings and to assess the position for a situation in 2020 for various measures and packages of measures involving different combinations of energy efficiency and renewable energy sources Relationship between cost-optimal and NZEB levels Under the EPBD, cost-optimality 17 sets the minimum level of ambition for both building renovation and new buildings. It is the level to which the nationally set minimum energy performance requirements should aim to reach. In line with the cost-optimal requirements under Article 5 of the Directive, building energy codes are reviewed every five years and strengthened if needed. Each five-year cycle presents an opportunity to lock in energy efficiency gains as new technologies are proven, and a chance to amend code implementation and compliance. Building codes can increase the likelihood of achieving NZEB targets. They are however not a replacement for the specific obligations of Article 9(1) as explained in section 4 above. The Commission services ordered a study in to estimate the gap between the principles of cost optimality and nearly zero-energy buildings. It was concluded that technologies related to energy savings, energy efficiency and renewable energies were sufficient to reach, in combination, a suitable target for nearly zero-energy buildings. A real technology gap to be bridged until 2021 was not perceived. The study found out that (i) investment cost reductions, improved performance of components and systems or energy storage solutions can positively influence the viability and introduction of nearly zero-energy buildings; and (ii) limitations may arise for renewable systems due to disparities in time or place, especially if one technology would be significantly favoured by the market or by policies. It is important to keep in mind that for the bulk of new buildings the nearly zero-energy buildings concept will apply as from 2021 onwards (for new public buildings from Meaning the level of energy performance which leads to the lowest cost during the estimated lifecycle of the building. Towards nearly zero-energy buildings- Definition on common principles under the EPBD (

14 onwards). Thus the actual gap that might need to be bridged will result from the framework conditions in 2021 (and 2019). Factors that are likely to be subject to changes are e.g. technology costs as reaction to more mature markets and larger volumes, energy prices (presumably being higher in compared to ) and primary energy factors for electricity, gas, district heating, etc. (presumably being lower in than in ). It is therefore estimated that the NZEB and cost-optimal levels will converge by the end of When is a NZEB level of energy performance too low to be considered a NZEB? Following from the previous sections, it is clear that the NZEB level cannot be lower than the 2021 cost-optimal level calculated in accordance with Article 5 of the Directive. The best available technology that is available and well introduced on the market at that time, financial aspects and legal and political considerations will determine how ambitious the Member States definitions for energy performance of NZEB become. The preliminary analysis of the cost-optimal reports required under Article 5 of the EPBD indicates that a smooth transition between cost optimality and nearly zero-energy buildings is achievable. What could be considered good practice at EU level? For both residential and non-residential buildings, overall net primary energy use levels below 30 kwh/m²y, seem to be -with the information available today- ambitious requirements. When Member States choose to include energy use from appliances in the case of non-residential buildings, higher evels would be expected. This simplification does not account for the recognised impact of climatic conditions, not only on the heating and cooling needs but also on the cost-effectiveness of packages of energy efficiency and renewable energy sources measures. It is for this reason that to meet the NZEB level, Member States can use different combinations of measures concerning insulation, renewables, technical building systems, etc. The information collected by the Commission shows that some Member States have chosen to link the NZEB level to an energy performance class (e.g. building class A++). This approach, when accompanied by a clear energy performance indicator, may be considered a good practice example to give clear information to investors and drive the market towards NZEB. Similarly, the approach followed in some Member States that links financial support for building renovation to the achievement of high energy classes equivalent to NZEB level is considered as a good practice to stimulate the transformation of national building stocks. 7. OBLIGATION UPON THE COMMISSION TO EVALUATE AND REPORT ON PROGRESS On the basis of these national plans in accordance and with Article 9(2), the Commission was required to publish a report on the progress of Member States, by December 2012 and every three years thereafter (Article 9(5)). The Commission published a first such report in June , concluding that that too little progress had been made by the Member States in their preparations towards NZEBs by Information was lacking for a large number of Member States: at the end of November 2012, only 9 Member States (BE, DK, CY, FI, LT, IE, NL, SE and UK) had reported their NZEB national plans to the Commission. As regards the practical definition of NZEBs, only 5 19 COM/2013/0483 final/2

15 Member States (BE, CY, DK, IE and LT) presented a definition that contained both a numerical target and a share of renewable energy sources. Since the Commission received only limited information from the Member States, it was not possible to undertake a proper evaluation of the national plans, and in particular of the adequacy of the measures envisaged by the Member States in relation to the objectives of the EPBD. To make sure that Member States address these requirements, the Commission wrote to the Member States on 17 December 2013 to obtain consolidated information on national implementation of Article 9 of the EPBD. To facilitate the provision of this information, the request was based on the common templates. This was coherent with the 2013 progress report and announced at the Energy Performance of Buildings Committee meeting on 19 March Upon expiry of the deadline for replies, the Commission launched specific requests to the missing Member States through the EU-pilot tool 20. On the basis of this information, the Commission in October 2014 examined again progress across EU countries 21 towards the nearly zero-energy buildings target. The outlook seemed clearly improved, with more practical applications of the NZEB definition implemented at national level, more intermediate targets set and more policies and measures in place for new NZEB and for refurbishment to NZEB levels. This updated state of play 22 indicated the need for more guidance to support the efforts by the Member States in this area and clarified the main issues of concern NZEB definitions The October 2014 update presented the state of play in 26 Member States (AT, BE, BG, CY, CZ, DE, DK, EE, FI, FR, HR, HU, IE, IT, LT, LU, LV, MT, NL, PL, PT, RO, SE, SI, SK, UK). Belgium and Austria submitted regional reports, which were analysed separately 23. Member States that had not sent a national plan or the consolidated templates as of 18 September 2014 (EL, ES) were taken into account in this update. However, Spain sent the necessary information shortly after that report. This state of play identified that where a numerical indicator is set, the requirements range rather widely from 0 kwh/m²/y to 270 kwh/m 2 /y (which includes energy use in appliances) and are mainly given as primary energy use in kwh/m²/y. The higher values are mainly from hospitals or other special non-residential buildings. For residential buildings the maximal primary energy consumptions ranges between 33 kwh/m²/y in Croatia (Littoral) and 95 kwh/m²/y in Latvia with a majority of the countries (BE (Brussels), EE, FR, IE) aiming at 45 or 50 kwh/m²/y. Other Member States (BE, LT, NL) use non-dimensional value (e.g. BE (Walloon) were an E-level of 60 is set at the moment) or an energy performance class (e.g. LT where NZEB have to comply with building class A++) as indicator. In some cases, Member States (e.g. CZ) did not define NZEBs for all building categories of the regulations, but in that specific example only for single family houses while definitions for other buildings are under development On the basis of information available to the Commission as of 18 September If regional results differ among each other this is indicated.

16 As regards the share of renewable energy the reporting is quite diverse, with only a few countries defining a specific minimum percentage and the majority making qualitative statements (BE (Brussels, Flanders), BG, CZ, DE, DK, FR, IE, IT, LV, LT, NL, RO, SE, SK and UK). No Member State has yet reported any legislative regime for not applying the NZEB requirements in specific and justifiable cases where the cost benefit analysis over the economic life cycle of the building in question is negative, as permitted under Article 9(6) of the EPBD Policies and measures for the promotion of NZEBs- tackling the existing building stock Article 9(3)(c) of the EPBD requires the national plans to include: "information on policies and financial or other measures adopted in the context of paragraphs 1 and 2 for the promotion of nearly zero-energy buildings, including details of national requirements and measures concerning the use of energy from renewable sources in new buildings and existing buildings undergoing major renovations in the context of Article 13(4) of Directive 2009/28/EC and Articles 6 and 7 of this Directive." The state of play as of October 2014 showed that Member States reported a wide range of policies and measures in support of the NZEB objectives in their national plans and NEEAPs (National energy efficiency action plans), although it is often not clear to what extent these measures specifically target NZEBs. Compared to the 2013 Commission progress report, the number of policies and measures reported from the Member States increased. More than two third of the Member States have polices and measures in the categories awareness raising and education, strengthening building regulation and energy performance certificates measures in place. In the 2013 Commission progress report less than half of the Member States had policies or measures addressing these topics in place 24. The following Member States use at least one of the above mentioned measures or policies: AT, BE (Brussels, Walloon, Flanders), BG, CZ, HR, CY, DK, EE, FI, FR, DE, HU, IE, IT, LV, LT, MT, PL, PT, SE, SI and UK. Financial instruments and support measures, including e.g. incentive policies, energy bonuses for private individuals, grant scheme for installation of RES, provide special guidance and financing for at-risk populations and subsidised mortgage interest rates for energy efficient homes, are another focus to promote NZEB (AT, BE (Brussels, Walloon, Flanders), CZ, BG, HR, DK, FI, FR, DE, IT, LU, NL, PL, PT, SI and UK). Various Member States have policies and measures for strengthening building regulations which include tightening energy minimum standards for buildings or the minimum level of renewable energy in housing in place. Other measures which are often used by the Member States are energy performance certification (e.g. certificate provides information about opportunities to improve building energy efficiency or scaled energy certificates), demonstration and pilot projects (e.g. project tenders with the topic Sustainable home or pilot projects Existing nearly zero-energy buildings ) and supervision (e.g. establish an efficient, high-quality system of energy audits or rollout of smart meters). Research and development policy measures are used less (DK, FI, FR, DE, IT, NL and SI). 24 In the 2013 Commission progress report the category Awareness raising and Information and Education and Training have been reported as one category. Thus in figure 4 the data referring to the 2013 Commission progress report.

17 Most of the policies and measures reported by the Member States also apply for public buildings. The scope of measures for public buildings varies substantially between Member States ranging from central government buildings only to all publicly-owned buildings or all buildings used for public purposes. Some Member States have also specific measures for public buildings. Those are mainly monitoring campaigns (e.g. NRClick is an energy accounting system for the comparison of different municipalities in Belgium) and demonstration projects (e.g. in Germany the Zero-energy building for the Federal Environmental Agency (Umweltbundesamt)). Compared to the 2013 Commission progress report the increase in the number of policies and measures to promote NZEB can be considered very positive Reporting on Article 13(4) of Directive 2009/28/EC25 Article 9(3c) of the EPBD requires Member States to also inform the Commission in their national plans about the ".details of national requirements and measures concerning the use of energy from renewable sources in new buildings and existing buildings undergoing major renovations in the context of Article 13(4) of Directive 2009/28/EC." Article 13(4) of Directive 2009/28/EC on the promotion of the use of energy from renewable sources (hereafter called RES Directive) states that: "Member States shall introduce in their building regulations and codes appropriate measures in order to increase the share of all kinds of energy form renewable sources in the building. In establishing such measures or in their regional support schemes, Member States may take into account national measures relating to substantial increases in energy efficiency and relating to cogeneration and to passive, low or zero-energy buildings. By December 2014, Member States shall, in their building regulations and codes require the use of minimum levels of energy from renewable sources in new buildings and in existing building that are subject to major renovation." The situation as of October 2014 showed that only a few Member States reported on this requirement in their national plan. Some Member States reported on the share of renewable energy in buildings e.g. IE, LT, NL and SK. 25 OJ L140 of , p. 16

18 ANNEX 1- extracts of the relevant legislation Renewables Energy Directive (48) It may be appropriate for Member States, in order to facilitate and accelerate the setting of minimum levels for the use of energy from renewable sources in buildings, to provide that such levels are achieved by incorporating a factor for energy from renewable sources in meeting minimum energy performance requirements under Directive 2002/91/EC, relating to a cost-optimal reduction of carbon emissions per building. 13(3) Member States shall recommend to all actors, in particular local and regional administrative bodies to ensure equipment and systems are installed for the use of electricity, heating and cooling from renewable energy sources and for district heating and cooling when planning, designing, building and renovating industrial or residential areas. Member States shall, in particular, encourage local and regional administrative bodies to include heating and cooling from renewable energy sources in the planning of city infrastructure, where appropriate. 13(4). Member States shall introduce in their building regulations and codes appropriate measures in order to increase the share of all kinds of energy from renewable sources in the building sector. In establishing such measures or in their regional support schemes, Member States may take into account national measures relating to substantial increases in energy efficiency and relating to cogeneration and to passive, low or zero-energy buildings. By 31 December 2014, Member States shall, in their building regulations and codes or by other means with equivalent effect, where appropriate, require the use of minimum levels of energy from renewable sources in new buildings and in existing buildings that are subject to major renovation. Member States shall permit those minimum levels to be fulfilled, inter alia, through district heating and cooling produced using a significant proportion of renewable energy sources. The requirements of the first subparagraph shall apply to the armed forces, only to the extent that its application does not cause any conflict with the nature and primary aim of the activities of the armed forces and with the exception of material used exclusively for military purposes. 13(5). Member States shall ensure that new public buildings, and existing public buildings that are subject to major renovation, at national, regional and local level fulfil an exemplary role in the context of this Directive from 1 January 2012 onwards. Member States may, inter alia, allow that obligation to be fulfilled by complying with standards for zero energy housing, or by providing that the roofs of public or mixed private-public buildings are used by third parties for installations that produce energy from renewable sources.