Since 2019, the European legislative and regulatory framework has been considerably strengthened to take into account the challenges of the energy transition.
These new regulations require economic actors to monitor their energy performance indicators more closely. The N'Gage platform supports you in monitoring your regulatory objectives.
What is the European legislative framework for energy?
The Lisbon Treaty
From the beginning of European cooperation, energy has been a central issue. The first steps of the European project were aimed at a common energy policy, as shown by the foundation of the European Coal and Steel Community in 1951.
Since then, the European Union has expanded its prerogatives, but energy remains a crucial sector.
Article 194 of the Lisbon Treaty specifies the European legislative framework for energy:
“In the context of the establishment or functioning of the internal market and taking into account the requirement to preserve and improve the environment, Union policy on energy shall aim, in a spirit of solidarity between Member States, to:
The "energy packages"
From the 1990s onwards, European regulations have mainly concerned the gradual opening of the electricity and gas markets.
For this purpose, the European legislator relied on bodies of legislation called “energy packages”:
- in 1996-1998, allowed companies and local authorities to choose their electricity and gas supplier as of July 1, 2004.
- in 2003 marked the opening up to free competition of energy suppliers for private individuals as of July 1, 2007
- published in 2009, aims to further integrate the internal market for electricity and gas. It strengthens the independence of transmission system operators and creates a common regulatory body at the European level: the Agency for the Cooperation of Energy Regulators (ACER).
An update of the European energy policy since 2019
The "Clean Energy for All Europeans" package
Until now, the European Union has mainly dealt with the economic issues of the energy market. But, from 2019, the European legislative and regulatory framework will change significantly.
At the end of 2016, the European Commission proposed a new body of texts aimed at better taking into account climate issues in European energy policy. On July 4, 2019, the “Clean Energy for All Europeans” package comes into force. With this new package, European decision-makers intend to reshape the EU’s energy policy to meet the objectives of the Paris Climate Agreement.
The text sets out a framework to support the EU’s energy transition over the decade 2020-2030 at a controlled cost and to provide all EU citizens with clean and affordable energy. It defines 3 main priorities:
- Giving priority to energy efficiency
- Making the EU the world leader in renewable energy
- Putting consumers at the heart of the energy system
Ambitious goals for 2030
In this new climate and energy framework, the main objectives are:
- improve the EU’s energy efficiency by at least 32.5% by 2030
- achieve annual energy savings of 0.8% of final energy consumption between 2021 and 2030
- Increase the share of energy from renewable sources to 32% by 2030
- reduce greenhouse gas emissions by at least 40% by 2030
A specific directive focuses on the building sector. The text encourages the energy renovation of buildings, the transition to smart building with the introduction of a building intelligence indicator and simplifies inspections of heating and air conditioning systems.
The new directive on the electricity market aims to provide more flexibility through increased use of interconnections. This flexibility should make it possible to adapt to the growing integration of renewable energies in electricity production.
Finally, a new regulation on governance provides for control mechanisms to ensure that the objectives will be achieved and to assess the consistency of the measures proposed by the Member States.
The European Green Deal
At the end of 2019, the European Union will present its Green Pact for Europe and, in January 2020, an associated investment plan.
This European Green Pact sets a target of zero greenhouse gas emissions by 2050. The European climate law transforms this commitment into a legal obligation.
To achieve this goal of carbon neutrality, the EU plans to support and finance several series of actions:
- invest in environmentally friendly technologies
- supporting innovation in industry
- deploy cleaner, more affordable and healthier private and public transportation
- decarbonizing the energy sector
- improving energy efficiency in buildings
- working with international partners to improve global environmental standards
How to comply with European regulations?
European regulations are of course binding on professionals in France. They are automatically transposed into French law.
To ensure that European regulations are properly applied, control and regulation mechanisms are provided for. In France, the Commission de régulation de l’énergie (CRE) ensures that the objectives of the energy policy are properly applied.
For organizations, compliance with regulatory obligations is not always easy. Regulations are evolving and require professionals to rigorously monitor their energy performance indicators.
The N’Gage platform, developed by Energisme, includes specific modules for regulatory monitoring. The solution allows you to collect, aggregate and analyze your energy data and then publish dedicated dashboards. For example, you can access a GHG (greenhouse gas) assessment in real time for your entire real estate portfolio.
With N’Gage, you can also monitor the energy performance of your buildings as closely as possible. Furthermore, the solution allows you to estimate the projected impact in terms of CO2 emissions of your future energy efficiency actions.