Article

New Guidelines for State Aid to Energy Infrastructure – A Helpful Move Toward Europe 2020?

 Robert Miklós Babirad

  

1        Introduction

On April 9, 2014, the European Commission adopted in principle new State aid guidelines, which will now encompass the application of State aid to energy infrastructure within the European Union.[1]  In 2008 the present Community guidelines on State aid for environmental protection[2] were established, which extended in duration through 2014.[3] The focus of the 2008 Guidelines centered upon the improvement of performance with regard to environmental concerns.[4]  Energy issues were addressed to the extent that they related to the support of environmental or climate related goals, but energy infrastructure failed to be specifically or adequately considered.[5]  This article will begin with a brief overview of Europe’s 2020 energy and climate goals.  The Commission’s inclusion of specific guidelines for energy infrastructure will then be assessed as well as their helpfulness with regard to achieving the goals of Europe 2020 and with respect to the Single Market.  In conclusion, it will be suggested that by extending the present Guidelines, specifically into the area relating to energy infrastructure, there will be an overall positive impact upon Europe in attaining its 2020 energy and climate objectives while minimizing any accompanying market distortions.

 

2        Europe’s 2020 Climate and Energy Goals

The goals of Europe 2020 include creating an EU wide policy for energy, which seeks to provide for energy services and products that are uninterrupted while fostering European innovation, technology, the development of a market for energy that is integrated and the overall attainment of Europe’s climate and energy goals as a whole.[6]  Europe 2020 also provides that by the year 2020, there will be an increase in the efficiency of energy by the EU’s Member States of 20% and with respect to emissions that are connected with global warming, a reduction of 20%.[7]  The European Union’s energy and climate objectives also provide for the goal of attaining 20% of Europe’s energy derivation from renewable resources by this time.[8]

  

3        Controversy Concerning State Aid In The Energy Sector

There is a concern as to whether extending the 2008 State aid environmental guidelines into the area of energy infrastructure will actually aid in the securing of Europe’s 2020 climate and energy objectives or instead result in a negative and measurable disruption of market forces.

Article 107(3)(b) TFEU permits the promotion of “an important project of common European interest” even where competition may be potentially distorted.  However, a concern is always present with regard to the conflict between unaltered competition in a market based economy and that of subsidies being applied through the granting of State aid, which may result in the internal market being disrupted.

It is important though to note that policy objectives have also always played a crucial role alongside competitive concerns.  Dr. Townley suggests that even agreements under Article 101 TFEU have been upheld by the Commission where they were even only “theoretically” based upon the larger policy objective of ensuring the supply of energy and this has occurred despite concerns regarding the integration of the Single Market or economic efficiency being negatively impacted.[9]  The Commission’s decisions in International Energy Agency are offered by Dr. Townley as support for the value, which has been attributed by the Commission to the certainty of availability with respect to particular goods of importance.[10] State aid becomes an essential instrument for the provision of a secure and reliable energy supply and attainment of European climate and energy objectives where energy operators on the market are unable to otherwise provide an adequate and modern energy infrastructure and supply; and also acts as an important device for overcoming failures both with regard to the market and existing regulatory schemes.[11]

The application of State aid as an instrument for achieving policy may therefore be employed, but must operate in tandem with the goal of minimizing distortions of the Single Market.  The Commission’s proposed Guidelines for energy and particularly energy infrastructure do not appear to be an unreasonable extension of policy making through the application of State aid, but rather a logical progression toward the attainment of Europe’s climate and energy goals.

Extending the guidelines to energy infrastructure becomes necessary, particularly because of the intended purpose of the rules, which is to aid in the creation of a European energy market that is integrated and able to meet Europe’s 2020 energy and climate objectives.[12]  Additionally, there is a focus on providing State aid to energy infrastructure projects that will enhance the flow of energy across Member State borders and encourage the establishment of energy infrastructure in those areas of Europe, which to date have experienced a lesser degree of overall development.[13]

Revised guidelines developed specifically for State aid to energy infrastructure become particularly essential when it is considered that for renewable energy resources to be used to their full potential while reducing expenditures, new facilities that are enabled to store the energy must be provided for that have the ability to convert “intermittent supplies of these energy sources” into an energy supply that is secure.[14]  Guidelines for State aid to energy infrastructure can aid in the effective attainment of this objective.

 

4        The  Helpfulness of the Guidelines for State Aid to Energy Infrastructure

A key aspect of the new guidelines is that they extend the 2008 environmental rules for assessing the application of State aid into the energy field and now specifically include rules for supporting energy infrastructure.[15]  This is an important step by the Commission, which resolves an existing failure to address State aid for the development of energy infrastructure.

The need for State aid guidelines for energy infrastructure is evident through the Commission’s acknowledgment that the generating of electricity has experienced a transition within Europe from a supply that was previously continuous and “relatively stable” to one that is now from a greater number of “variable sources,” which provide production on a smaller scale.[16]  As a result, the EU has had to find new ways to secure adequate energy production and supply.[17]  The establishment of guidelines for State aid to energy infrastructure is one manner of helping to address this challenge.

The Commission also notes that failures of both a regulatory and market nature have the potential to create a lack of sufficient investment in “generation capacity,” without the application of State aid, which may be used to ensure adequacy of the energy supply and the employment of renewable energy within the EU’s Member States.[18]  These acknowledgements by the Commission are important, because they recognize the changing nature of how energy is being supplied throughout the E.U. and the need for State aid and accompanying guidelines for energy infrastructure if market and regulatory failures are to be corrected and adequate energy production is to be ensured.

The Guidelines also encourage an avoidance of using State aid as a subsidy for fossil fuels, which would have the potential to result in harmful environmental effects.[19]  This is an important move by the Commission toward encouraging the development of an energy infrastructure that will foster the use of renewable energy and aid in the overall achievement of Europe 2020’s energy and climate goals.

The burden is also placed upon the Member State to provide reasoning as to why State aid is necessary for “adequate capacity” and why this cannot be met by the market.[20]  This is a positive aspect of the Guidelines in that an undue reliance on State aid is discouraged and market forces are instead supported.  However, the Commission provides that factors to be considered in the assessment should include a consideration of “the impact of variable generation,” and this will extend to that which is available in neighbouring Member States, the availability of interconnectors, projects that may be in the planning stages or already under construction and any additional factors with the potential to “cause or exacerbate the generation adequacy problem.”[21]

The difficulty is that the Commission fails to explain the scope of these broad factors, which must enter into an assessment of whether State aid should be granted to energy infrastructure.  Factors that have the ability to result in a failure to generate sufficient energy need to be more clearly defined if this provision of the Guidelines is to be interpreted meaningfully.  The Commission also neglects to provide for the extent that energy generation facilities in neighbouring Member States must be considered in the assessment.  Additionally, it is problematic that projects, which have not been completed, as well as those that are under construction and which may not come to fruition, are to be considered as viable factors in the State aid assessment.  As a result, State aid may be needlessly granted or incorrectly denied to the development of energy infrastructure in a Member State.

The Commission also provides that State aid to energy infrastructure should not provide for the undertaking to be remunerated for energy being sold, but rather compensation should only be provided through State aid for the actual availability of the energy provided by the undertaking.[22]  This is a positive ideal, but requires greater clarification by the Commission. The cost charged by an operator for “availability” may be inflated and thereby enable an energy operator to benefit from the State aid, which it is in receipt of, while also obtaining a profit through inflating its cost for the “availability” of the infrastructure.  A misapplication of State aid could subsequently result under this provision if greater oversight is not provided by the Commission in how aid will actually be dispensed with regard to this provision.

It is beneficial to Europe 2020’s energy and climate objectives that the appropriateness of State aid to energy infrastructure will be evaluated in terms of whether the measure encourages “adequate incentives” to operators and generators for the use of technology that is sustainable.[23]

The Commission also provides that the measure receiving State aid should possess a design that enables other undertakings, which are able to “effectively contribute to addressing the generation adequacy problem” to be able to take part in the measure, but only where this is “physically possible.”[24]  This is a positive aspect of the Guidelines that should encourage the improvement of cross-border energy flow and support less developed regions.

It is also noted that the measure, which is receiving the State aid should avoid the creating of “negative effects on the internal market” or measures that would “unduly strengthen market dominance.”[25]  The Commission appears to be taking concerns with regard to competition into account as well as limiting potential market distortions through the inclusion of these provisions.  These guidelines in particular help to alleviate concerns regarding the Commission enabling an excessive dependence on State aid subsidies for the development of energy infrastructure.

It is also interesting to note that market distortions through the application of State aid are minimized by the new Guidelines, which support market based tools for encouraging the use and development of renewable energy through the application of certificate schemes as well as the Commission’s endorsement of market premiums.[26]  A particularly positive aspect is that a tradable permit scheme for energy infrastructure must exceed the mandatory environmental standards, which have been established.[27]  Additionally, an undertaking that has poor performance with regard to environmental standards for energy production will receive a reduction in their allowances under these schemes, which are provided for in the Guidelines.[28]

The Commission’s endorsement of tools that are based on the market with regard to trading schemes are a positive step in continuing to support competition and market based tools alongside the application of State aid to energy infrastructure.[29] The incorporation of a trading scheme assessment into the guidelines will also aid the climate objectives of Europe 2020 in that allowances for harmful emissions and the associated costs to energy infrastructure will foster the development of a European energy infrastructure that pursues the use of technology that is efficient and based less upon carbon and fossil fuels.[30]

The employment of a tradable permit scheme under the new guidelines for energy infrastructure serves as both an endorsement of market based tools for achieving EU objectives as well as an important aid for the attainment of Europe 2020’s energy and climate goals.  It is also important to note that the EU Emissions Trading System (ETS) is a long-standing instrument of EU environmental policy, which the new guidelines will continue to build upon in their future application.

 

5        Conclusion

The extension of the 2008 State Aid Guidelines on Environmental Protection into the area of energy infrastructure will enable the European Union to more effectively achieve its 2020 energy and climate objectives.  Critics may suggest that competition will be unduly distorted by the measure.  Ambiguities are certainly present in the new guidelines, which will need to be eventually clarified by the Commission, so as to prevent State aid from being needlessly dispensed or incorrectly denied to energy infrastructure applicants in a Member State.  However, the Commission effectively addresses concerns with regard to the Single Market by endorsing market based tools throughout the new 2014 Guidelines and generally succeeds in ensuring that market disruptions are minimal and greater gains are achieved toward the EU’s energy and climate objectives through a more effective application of State aid with regard to energy infrastructure throughout the European Union.


[1]Commission Communication, Guidelines on State Aid for Environmental Protection and Energy 2014-2020 C(2014) 2322/3.

<http://ec.europa.eu/competition/sectors/energy/legislation_en.html>

Accessed 5th of June 2014.

[2] Community guidelines on State aid for environmental protection OJ 2008 C82/01

< http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008XC0401(03):EN:NOT> Accessed 11th of March 2014.

[3] Commission Press Release of 18 December 2013, State aid: Commission consults on draft rules for state support in energy and environmental field, IP/13/1282, p. 2.

< http://europa.eu/rapid/press-release_IP-13-1282_en.htm> Accessed 11th of March 2014.

[4] Ibid.

[5] Ibid.

[6] Commission Communication, A Strategy for Competitive, Sustainable and Secure Energy COM (2010) 639 final, p. 2, 5-6.

< http://europa.eu/legislation_summaries/energy/european_energy_policy/en0024_en.htm> Accessed 11th of March 2014.

[7] da Graça Carvalho, Maria, Matteo Bonifacio, and Pierre Dechamps.  “Building a low carbon society.” Energy 36, no. 4 (2011): 1842-1847, p. 1842.

[8] Ibid. at p. 1843

[9] Townley, C. Article 81 EC and Public Policy (Hart Publishing, Oxford, 2009), p. 169.

[10] Ibid, at p. 165; See also: Commission decisions, International Energy Agency (1994) and International Energy Agency (1983).

[11] Commission Paper, Draft Guidelines on Environmental and Energy Aid for 2014-2020 OJ 2013, p. 52.

<http://ec.europa.eu/competition/consultations/2013_state_aid_environment/index_en.html> Accessed 11th of March 2014.

[12] Ibid.

[13] Commission Press Release of 18 December 2013, State aid: Commission consults on draft rules for state support in energy and environmental field, IP/13/1282, p. 1.

< http://europa.eu/rapid/press-release_IP-13-1282_en.htm> Accessed 11th of March 2014.

[14] da Graça Carvalho, Maria, Matteo Bonifacio, and Pierre Dechamps.  “Building a low carbon society.” Energy 36, no. 4 (2011): 1842-1847, p. 1843.

[15]Commission Communication, Guidelines on State Aid for Environmental Protection and Energy 2014-2020 C(2014) 2322/3.

<http://ec.europa.eu/competition/sectors/energy/legislation_en.html>

Accessed 5th of June 2014.

[16] Commission Communication, Guidelines on State Aid for Environmental Protection and Energy 2014-2020 C(2014) 2322/3, p. 52.

<http://ec.europa.eu/competition/sectors/energy/legislation_en.html>

Accessed 28th of May 2014.

[17] Ibid.

[18] Ibid.

[19] Ibid.

[20] Ibid. at p. 53.

[21] Ibid.

[22] Ibid.

[23] Ibid.

[24] Ibid. at p. 54.

[25] Ibid. at pps. 54-55.

[26] Commission Press Release of 18 December 2013, State aid: Commission consults on draft rules for state support in energy and environmental field, IP/13/1282, p. 1.

< http://europa.eu/rapid/press-release_IP-13-1282_en.htm> Accessed 11th of March 2014.

[27]Commission Communication, Guidelines on State Aid for Environmental Protection and Energy 2014-2020 C(2014) 2322/3, p. 55.

<http://ec.europa.eu/competition/sectors/energy/legislation_en.html>

Accessed 28th of May 2014.

[28] Ibid. at pps. 55-56.

[29]Schleich, Joachim, Karoline Rogge, and Regina Betz.  “Incentives for energy efficiency in the EU Emissions Trading Scheme.” Energy Efficiency 2, no. 1 (2009), p. 1.

[30] Ibid. at p. 2.

Article

Energy Efficiency in EU law: A Conundrum?

 

Gianni Lo Schiavo

LL.M., College of Europe

PhD Candidate, the Dickson Poon School of Law, King’s College London

 

1. Introduction

Energy efficiency constitutes the third pillar of the “20+20+20” initiative of 2009 aimed at reforming climate change and energy policy by 2020 in the European Union (EU)[1]. The adoption of the Commission’s proposal on a directive for energy efficiency by the Council in October 2012[2] and its publication on 14 November 2012[3] are the ultimate achievements of the EU in the field of energy efficiency.

The Directive repeals two directives on energy efficiency[4] and is intended to attain the target of “20% primary energy savings in 2020”.[5]

This article aims at analysing the most important developments contained in the Directive, taking into account their impact in light of the 2020 target.

 

2. Energy efficiency and EU law

Energy efficiency is not defined in the European Treaties. The only reference to it is contained under the new Article 194 TFEU included by the Lisbon Treaty.[6] This provision, establishes that, among other objectives, the EU promotes energy efficiency. This is not a new objective of EU policies.[7] However it is only with the new “20+20+20” initiative that energy efficiency has acquired a primary role in EU policy-making.

 

2.1 The “20+20+20” initiative and energy efficiency

EU law has already pioneered energy efficiency in the 90s.[8] More recently, energy efficiency has acquired more importance. Already in a 2006 Communication, the Commission foresaw a number of measures to achieve the 20% increase in energy efficiency.[9] However, it was only with the “20+20+20” initiative that energy efficiency has assumed a central role. Following the 2007 Spring European Council conclusions,[10] the European Commission adopted the seminal EU Climate and Energy Package in 2009.[11] It establishes a number of proposals which aim to achieve three objectives by 2020: the reduction of greenhouse gases emissions by 20%, the increase in the use of renewable energies by 20% and the improvement in energy efficiency by 20%. The reference year to achieve these objectives has been set in 2020.

Hence, energy efficiency constitutes one of the three pillars of the initiative and aims at saving “the EU some € 100 billion and cut emissions by almost 800 million tonnes a year”. [12] As part of this pillar, the Commission published a Communication[13] in 2008 named “Energy Efficiency: Delivering the 20% Target” which contained specific measures to be addressed to achieve the target.[14] A strong emphasis in the document was put on the obstacles to energy efficiency improvements consisting in “the poor implementation of existing legislation, the lack of consumer awareness and the absence of adequate structures to trigger essential investments in and market uptake of energy efficient buildings, products and services” and the ways to overcome them in the near future.

Notwithstanding the ambitious programme put forward by the Commission, current achievements have not been as effective as hoped. As shown by the European Council Conclusions of 4 February 2011,[15] the 20% energy efficiency target is currently not on track and further measures are needed in order to achieve the energy efficiency goal.

 

2.2 The Directive on energy efficiency

The Commission made a legislative proposal on a Directive on energy efficiency on 22 June 2011 on the basis of Art.194(2) TFEU. As stated in the Impact Assessment, the policy choices followed by the Commission were three: set indicative targets to be achieved by the Member States, evaluate the nature and impact of individual policy measures, and extend the scope of the two former instruments to be merged into one directive. Overall, according to the Commission, these policy objectives were favoured with a view to achieve strong energy savings and reinforce action for energy services.

After first reading amendments, the European Parliament and the Council approved the proposal in October 2012. The directive has been published on 14 November 2012. According to Art.28, Member States shall transpose the Directive eighteen months after its entry into force. So the delay of transposition is set by the end of the first half of 2014.

The directive is divided into four main chapters: the first on subject matter, scope, definitions and energy efficiency targets; the second on efficiency in energy use; the third on efficiency in energy supply; the fourth on horizontal provision; and the fifth on final provisions. In the preamble, the Directive states a number of targets which the directive aims at achieving.

Through referring both to the European Council Conclusions of 4 February 2011[16] and to the 2011 Energy Efficiency Plan,[17] the Directive recalls that Member States are not yet on target to achieve the 2020 energy efficiency goals. On the contrary, these goals require that Member States set strict indicative national energy efficiency targets, schemes and programmes.

The Directive defines energy efficiency in “terms of the ratio of output of performance, services, goods or energy, to input of energy”.[18] Energy efficiency targets are related to primary energy consumption as “gross inland consumption, excluding non-energy uses”, and final energy consumption as “all energy supplied to industry, households, services and agriculture”. To that extent, Member States shall notify their targets to the Commission taking into account the “absolute level of primary energy consumption and final energy consumption in 2020”.[19]

The Directive puts great emphasis on the public sector to achieve targets of energy efficiency. In particular, it provides that 3% of public bodies’ buildings shall be renovated to respect minimum energy performance requirements. Similarly, public bodies are required to purchase products, services and buildings with high energy-efficiency performance. Further, the Directive states that Member States shall set up energy efficiency obligation schemes with a view to achieve the energy efficiency goals.

The consumers are entitled to receive intelligent metering system indicating competitive prices, reflecting accurately the consumer’s actual energy consumption and providing information on actual time of use.[20] Similarly, billing information shall be accurate and based on actual consumption. This system of billing information shall be free of charge and be easy to access.[21]

Finally, the chapter on energy efficiency in supply contains provisions on energy auditing, energy transformation, transmission and distribution, energy services and incentives to reduce energy consumption.[22] The primary objective of these provisions is to allow a smart use of energy and to promote energy efficiency in the Member States.

 

3. A commentary to the Directive: critical remarks

The Directive stands out as the most important piece efficiency of legislation in European energy law. Its content, admittedly much more detailed as compared with the Commission’s initial proposal, has been fairly modified. On the whole, as shown also by a Commission Non-paper,[23] the amendments to the Directive have not been beneficial to reach the energy efficiency target.

First, contrary to the initial attempts of the Commission, the Directive follows the policy objective of reaching indicative national targets on Member States rather than the binding targets. This policy choice reflects the need not to impose an excessive burden on Member States and is motivated by the difficulties of accepting “binding terms” in the Council. Admittedly, indicative targets do not share the same guarantees as the binding ones and they appear problematic from the point of view of compliance.

Second, the setting up of an energy efficient obligation scheme where Member States need to indicate at least 1.5% annual energy savings is a positive development because it will induce Member States to save energy. Nonetheless, a number of provisions limit the general scope of the obligation scheme and provide for some alternatives to energy saving calculations that do not contribute to energy efficiency on the whole.[24]

Further, important innovations refer to obligations on the part of the public sector. For instance, public bodies should play an exemplary role in energy savings. Accordingly, the directive contains two provisions on the public sector.[25] First, a percentage of 3% in annual renovation for public bodies’ buildings respectful of energy efficient performance is a positive requirement to assure that energy is not wasted by public bodies. As affirmed in the preamble,[26] both the fact that a considerable share of buildings in the Member States is public and that public buildings have high visibility in public life suggest that effective energy saving can be achieved in future. Second, the provision requiring public bodies of the central government to purchase services and buildings with high energy-efficiency performance stands out as a sound condition to assure energy savings. However, at a more careful reading, one aspect strongly limits the scope of this provision: the obligation to purchase does not apply to local authorities as long as the purchase does not have a value equal or greater than the threshold established in Art.7 of directive 2004/18/EC.[27] Admittedly, this limitation on scope contained in the Directive does not contribute to far-reaching energy savings.

Conversely, from the point of view of the consumer, the directive appears a significant improvement in transparency and access to information. In fact, consumers will be informed on energy consumption through intelligent metering systems and sound billings. Nonetheless, the insertion of conditionalities to metering and billing obligations strongly reduces the potential benefit for energy efficiency.

As for undertakings, the directive establishes, on the one side, incentives for Small and Medium Enterprises (“SMEs”) to promote energy audits and, on the other side, obligations for large companies to carry out energy audits. These could prove to be effective measures to assure that the private sector respects appropriate standards of energy consumption. However, given the voluntary nature of audit for SMEs, it appears less probable that SMEs will make use of audits if the Member States do not provide for substantial incentives to the benefit of the undertaking itself. Conversely, the audit obligation on the part of non-SMEs will take place only from 5 December 2015. Hence, one may question whether these provisions are actually effective in contributing to reach the 2020 targets of energy efficiency.

Finally, the Directive contains a provision on efficiency in heating and cooling that should promote cogeneration. Once again, this provision refers to an obligation to carry out a cost-benefit analysis rather than an obligation of cogeneration as envisaged in the proposal. Hence, even if the proposal attempted at assuring that cogeneration took place in the EU, the final Directive is less stringent in achieving cogeneration as a way to reduce energy consumption.

 

4. Conclusion

The Directive contains important improvements to raise energy efficiency in Europe but, unfortunately, its content is not as stringent as expected to reach the 20% target by 2020. Even if Member States duly implement the provisions of the Directive, which is still difficult to preconize, the EU does not have realistic chances to attain the planned 20% increase in energy efficiency by 2020 with the new Directive. Hence, it is still open to debate whether the EU should refocus energy efficiency on less ambitious goals or promote stricter policy solutions to reach the 2020 target.

 


[1] Communication “20 20 by 2020 – Europe’s climate change opportunity”, COM (2008)30.

[2] See the speech “Commissioner Oettinger welcomes final adoption of Energy Efficiency Directive”, IP/12/1069, 4.10.2012.

[3] Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC, [2012] OJ L315 p.1 (“the Directive”).

[4] Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market; and Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services.

[5] The Directive, recital 2.

[6] On the impact of the Lisbon Treaty on energy policy see L. HANCHER and F. SALERNO, “Energy Policy after Lisbon”, in A. BIONDI, P. EECKHOUT and S. RIPLEY, EU law after Lisbon, Oxford, 2012, pp.367-402.

[7] For a reconstruction of past energy efficiency initiatives in the EU see V. BRUGGEMANN, Energy efficiency as a criterion for regulation of the European Community, (2004), EELR, pp.141-147.

[8] As starting point on energy efficiency in the EU see the Council Resolution of 7 December 1998 on energy efficiency in the European Community, OJ 17.12.1998 C394/01.

[9] Commission Communication, Action plan for energy efficiency: Realizing the potential, COM(2006)545 final.

[10] 7224/1/07 REV 1, 02.05.2007.

[11] On the 20 20 20 package see more extensively K. KULOVESI, E. MORGERA and M. MUNOZ, “Environmental integration and multi-faceted international Dimensions of EU law: Unpacking the EU’s 2009 Climate and Energy Package”, (2009), CMLR, pp.829-891.

[12] COM (2008) 30.

[13] Communication from the Commission of 13 November 2008 – Energy efficiency: delivering the 20% target COM(2008) 772.

[14] The consumption of energy is generally calculated in “Mtoe” which can be defined as the equivalent amount of energy released by burning one Million tonne of crude oil.

[16] The Directive, recital 2.

[17] Ibidem, recital 8.

[18] Ibidem, art. 2 par. 1 n. 4.

[19] Ibidem, art.3.

[20] Ibidem, art. 9.

[21] Ibidem, art.10.

[22] Ibidem, art.8, 14, 15, 16, 18.

[23] See the Commission Non-paper on the Energy Efficiency Directive available at http://ec.europa.eu/energy/efficiency/eed/doc/20120424_energy_council_non_paper_efficiency_en.pdf, 19-20 April 2012.

[24] See the Directive, art.7 par.2. However, as stated in art. 7 par.3, the reduction on energy savings “shall not lead to a reduction of more than 25% of the amount of energy savings”.

[25] The Directive, art.5 and 6.

[26] Ibidem, Preamble 17.

[27] Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts, OJ  L 134, 30.4.2004, p.114.