Heating and cooling assessment and planning
1. As part of its integrated national energy and climate plan and its updates pursuant to Regulation (EU) 2018/1999, each Member State shall submit to the Commission a comprehensive heating and cooling assessment. That comprehensive assessment shall contain the information set out in Annex X to this Directive and shall be accompanied by the assessment carried out pursuant to Article 15(7) of Directive (EU) 2018/2001.
2. Member States shall ensure that stakeholders affected by the comprehensive assessment referred to in paragraph 1 are given the opportunity to participate in the preparation of heating and cooling plans, the comprehensive assessment and the policies and measures, whilst ensuring that the competent authorities do not disclose or publish trade secrets or business secrets that have been identified as such.
3. For the purpose of the comprehensive assessment referred to in paragraph 1, Member States shall carry out a cost-benefit analysis covering their territory on the basis of climate conditions, economic feasibility and technical suitability. The cost-benefit analysis shall be capable of facilitating the identification of the most resource- and cost-efficient solutions to meeting heating and cooling needs, taking into account the energy efficiency first principle. That cost-benefit analysis may be part of an environmental assessment under Directive 2001/42/EC of the European Parliament and of the Council ( 46 ) .
Member States shall designate the competent authorities responsible for carrying out the cost-benefit analyses, provide the detailed methodologies and assumptions in accordance with Annex XI and establish and make public the procedures for the economic analysis.
4. Where the comprehensive assessment referred to in paragraph 1 of this Article and the analysis referred to in paragraph 3 of this Article identify a potential for the application of high-efficiency cogeneration and/or efficient district heating and cooling from waste heat, whose benefits exceed the costs, Member States shall take adequate measures for efficient district heating and cooling infrastructure to be developed, to encourage the development of installations for the utilisation of waste heat, including in the industrial sector, and/or to accommodate the development of high-efficiency cogeneration and the use of heating and cooling from waste heat and renewable energy sources in accordance with paragraph 1 of this Article and with Article 26(7) and (9).
Where the comprehensive assessment referred to in paragraph 1 of this Article and the analysis referred to in paragraph 3 of this Article do not identify a potential whose benefits exceed the costs, including the administrative costs of carrying out the cost-benefit analysis referred to in Article 26(7), the Member State concerned, together with the local and regional authorities, where applicable, may exempt installations from the requirements laid down in paragraphs 1 and 3 of this Article.
5. Member States shall adopt policies and measures which ensure that the potential identified in the comprehensive assessments carried out pursuant to paragraph 1 of this Article is realised. Those policies and measures shall include at least the elements set out in Annex X. Each Member State shall notify those policies and measures as part of the update of its integrated national energy and climate plans submitted pursuant to Article 14(2) of Regulation (EU) 2018/1999, its subsequent integrated national energy and climate plan notified pursuant to Article 3 and Articles 7 to 12 of that Regulation, and the relevant national energy and climate progress reports submitted pursuant to that Regulation.
6. Member States shall ensure that regional and local authorities prepare local heating and cooling plans at least in municipalities having a total population higher than 45 000. Those plans should at least:
(a)
be based on the information and data provided in the comprehensive assessments carried out pursuant to paragraph 1 and provide an estimate and mapping of the potential for increasing energy efficiency, including via low-temperature district heating readiness, high efficiency cogeneration, waste heat recovery, and renewable energy in heating and cooling in that particular area;
(b)
be compliant with the energy efficiency first principle;
(c)
include a strategy for the use of the identified potential pursuant to point (a);
(d)
be prepared with the involvement of all relevant regional or local stakeholders and ensure the participation of general public, including operators of local energy infrastructure;
(e)
take into account the relevant existing energy infrastructure;
(f)
consider the common needs of local communities and multiple local or regional administrative units or regions;
(g)
assess the role of energy communities and other consumer-led initiatives that can actively contribute to the implementation of local heating and cooling projects;
(h)
include an analysis of heating and cooling appliances and systems in local building stocks, taking into account the area-specific potentials for energy efficiency measures and addressing the worst performing buildings and the needs of vulnerable households;
(i)
assess how to finance the implementation of policies and measures and identify financial mechanisms allowing consumers to shift to renewable heating and cooling;
(j)
include a trajectory to achieve the goals of the plans in line with climate neutrality and the monitoring of the progress of the implementation of policies and measures identified;
(k)
aim to replace old and inefficient heating and cooling appliances in public bodies with highly efficient alternatives with the aim of phasing out fossil fuels;
(l)
assess potential synergies with the plans of neighbouring regional or local authorities to encourage joint investments and cost efficiency.
Member States shall ensure that all relevant parties, including public and relevant private stakeholders, are given the opportunity to participate in the preparation of heating and cooling plans, the comprehensive assessment referred to in paragraph 1 and the policies and measures referred to in paragraph 5.
For that purpose, Member States shall develop recommendations supporting the regional and local authorities to implement policies and measures in energy efficient and renewable energy based heating and cooling at regional and local level utilising the potential identified. Member States shall support regional and local authorities to the utmost extent possible by any means, including financial support and technical support schemes. Member States shall ensure that heating and cooling plans are aligned with other local climate, energy and environment planning requirements in order to avoid administrative burden for local and regional authorities and to encourage the effective implementation of the plans.
Local heating and cooling plans may be carried out jointly by a group of several neighbouring local authorities provided that the geographical and administrative context, as well as the heating and cooling infrastructure, is appropriate.
Local heating and cooling plans shall be assessed by a competent authority and, if necessary, followed by appropriate implementation measures.
Heating and cooling supply
1. In order to ensure more efficient consumption of primary energy and to increase the share of renewable energy in heating and cooling supply going into the network, an efficient district heating and cooling system shall meet the following criteria:
(a)
until 31 December 2027, a system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat;
(b)
from 1 January 2028, a system using at least 50 % renewable energy, 50 % waste heat, 50 % renewable energy and waste heat, 80 % of high-efficiency cogenerated heat or at least a combination of such thermal energy going into the network where the share of renewable energy is at least 5 % and the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 50 %;
(c)
from 1 January 2035, a system using at least 50 % renewable energy, 50 % waste heat or 50 % renewable energy and waste heat, or a system where the total share of renewable energy, waste heat or high-efficiency cogenerated heat is at least 80 % and in addition the total share of renewable energy or waste heat is at least 35 %;
(d)
from 1 January 2040, a system using at least 75 % renewable energy, 75 % waste heat or 75 % renewable energy and waste heat, or a system using at least 95 % renewable energy, waste heat and high-efficiency cogenerated heat and in addition the total share of renewable energy or waste heat is at least 35 %;
(e)
from 1 January 2045, a system using at least 75 % renewable energy, 75 % waste heat or 75 % renewable energy and waste heat;
(f)
from 1 January 2050, a system using only renewable energy, only waste heat, or only a combination of renewable energy and waste heat.
2. Member States may also choose, as an alternative to the criteria set out in paragraph 1 of this Article, sustainability performance criteria based on the amount of GHG emissions from the district heating and cooling system per unit of heat or cold delivered to the customers, taking into consideration measures implemented to fulfil the obligation pursuant to Article 24(4) of Directive (EU) 2018/2001. When choosing those criteria, an efficient district heating and cooling system shall have the following maximum amount of GHG emissions per unit of heat or cold delivered to the customers:
(a)
until 31 December 2025: 200 grams/kWh;
(b)
from 1 January 2026: 150 grams/kWh;
(c)
from 1 January 2035: 100 grams/kWh;
(d)
from 1 January 2045: 50 grams/kWh;
(e)
from 1 January 2050: 0 grams/kWh.
3. Member States may choose to apply the criteria of GHG emissions per unit of heat or cold for any given period referred to in paragraph 2, points (a) to (e), of this Article. If they choose to do so, they shall notify the Commission by 11 January 2024 for the period referred to in paragraph 2, point (a), of this Article and at least six months before the beginning of the relevant periods referred to in paragraph 2, points (b) to (e), of this Article. Such a notification shall include the measures implemented to fulfil the obligation pursuant to Article 24(4) of Directive (EU) 2018/2001 if they have not already been notified in the latest update of their national energy and climate plan.
4. In order for a district heating and cooling system to qualify as efficient, Member States shall ensure that where it is built or its supply units are substantially refurbished, the district heating or cooling system meet the criteria set out in paragraph 1 or 2 applicable at the time when it starts or continues its operation after the refurbishment. In addition, Member States shall ensure that when a district heating and cooling system is built or its supply units are substantially refurbished:
(a)
there is no increase in the use of fossil fuels other than natural gas in existing heat sources compared to the annual consumption averaged over the previous three calendar years of full operation before refurbishment; and
(b)
any new heat sources in that system do not use fossil fuels, except natural gas, if built or substantially refurbished until 2030.
5. Member States shall ensure that as from 1 January 2025, and every five years thereafter, operators of all existing district heating and cooling systems with a total heat and cold output exceeding 5 MW and which do not meet the criteria set out in paragraph 1, points (b) to (e), prepare a plan to ensure more efficient consumption of primary energy, to reduce distribution losses and to increase the share of renewable energy in heating and cooling supply. The plan shall include measures to meet the criteria set out in paragraph 1, points (b) to (e), and shall require approval by the competent authority.
6. Member States shall ensure that data centres with a total rated energy input exceeding 1 MW utilise the waste heat or other waste heat recovery applications unless they can show that it is not technically or economically feasible in accordance with the assessment referred to in paragraph 7.
7. In order to assess the economic feasibility of increasing energy efficiency of heat and cooling supply, Member States shall ensure that an installation level cost-benefit analysis in accordance with Annex XI is carried out where the following installations are newly planned or substantially refurbished:
(a)
a thermal electricity generation installation with an average annual total energy input exceeding 10 MW, in order to assess the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation;
(b)
an industrial installation with an average annual total energy input exceeding 8 MW in order to assess utilisation of the waste heat on-site and off-site;
(c)
a service facility with an annual average total energy input exceeding 7 MW, such as wastewater treatment facilities and LNG facilities, in order to assess utilisation of waste heat on-site and off-site;
(d)
a data centre with a total rated energy input exceeding 1 MW level in order to assess the cost and benefit analysis, including, but not limited to, technical feasibility, cost-efficiency and the impact on energy efficiency and local heat demand, including seasonal variation, of utilising the waste heat to satisfy economically justified demand, and of the connection of that installation to a district heating network or an efficient/RES-based district cooling system or other waste heat recovery applications.
The analysis referred to in the first subparagraph, point (d), shall consider cooling system solutions that allow removing or capturing the waste heat at useful temperature level with minimal ancillary energy inputs.
Member States shall aim to remove barriers for the utilisation of waste heat and provide support for the uptake of waste heat where the installations are newly planned or refurbished.
The fitting of equipment to capture carbon dioxide produced by a combustion installation with a view to it being geologically stored as provided for in Directive 2009/31/EC shall not be considered as refurbishment for the purpose of points (b) and (c) of this paragraph.
Member States shall require the cost-benefit analysis to be carried out in cooperation with the companies responsible for the operation of the facility.
8. Member States may exempt from paragraph 7:
(a)
peak load and back-up electricity generating installations which are planned to operate under 1 500 operating hours per year as a rolling average over a period of five years, based on a verification procedure established by the Member States ensuring that this exemption criterion is met;
(b)
installations that need to be located close to a geological storage site approved under Directive 2009/31/EC;
(c)
data centres whose waste heat is or will be used in a district heating network or directly for space heating, domestic hot water preparation or other uses in the building or group of buildings or facilities where it is located.
Member States may also lay down thresholds, expressed in terms of the amount of available useful waste heat, the demand for heat or the distances between industrial installations and district heating networks, for exempting individual installations from paragraph 7, points (c) and (d).
Member States shall notify exemptions adopted under this paragraph to the Commission.
9. Member States shall adopt authorisation criteria as referred to in Article 8 of Directive (EU) 2019/944, or equivalent permit criteria, in order to:
(a)
take into account the outcome of the comprehensive assessment referred to in Article 25(1);
(b)
ensure that the requirements laid down in paragraph 7 are fulfilled;
(c)
take into account the outcome of the cost-benefit analysis referred to in paragraph 7.
10. Member States may exempt individual installations from being required, by the authorisation or equivalent permit criteria referred to in paragraph 9, to implement options whose benefits exceed their costs, if there are imperative reasons of law, ownership or finance for doing so. In those cases the Member State concerned shall submit a reasoned decision to the Commission within three months of the date of taking that decision. The Commission may issue an opinion on the decision within three months of its receipt.
11. Paragraphs 7, 8, 9 and 10 of this Article shall apply to installations covered by Directive 2010/75/EU without prejudice to the requirements laid down in that Directive.
12. Member States shall collect information on cost-benefit analyses carried out in accordance with paragraph 7, points (a) to (d). That information should contain at least the data on available heat supply amounts and heat parameters, number of planned operating hours every year and geographical location of the sites. Those data shall be published with due respect for their potential sensitivity.
13. On the basis of the harmonised efficiency reference values referred to in Annex III, point (d), Member States shall ensure that the origin of electricity produced from high-efficiency cogeneration can be guaranteed according to objective, transparent and non-discriminatory criteria laid down by each Member State. They shall ensure that that guarantee of origin complies with the requirements laid down in, and contains at least the information specified in, Annex XII. Member States shall mutually recognise their guarantees of origin, exclusively as proof of the information referred to in this paragraph. Any refusal to recognise a guarantee of origin as such proof, in particular for reasons relating to the prevention of fraud, shall be based on objective, transparent and non-discriminatory criteria. Member States shall notify the Commission of such refusal and set out the reasons for it. In the event of a refusal to recognise a guarantee of origin, the Commission may adopt a decision to compel the refusing party to recognise it, in particular with regard to objective, transparent and non-discriminatory criteria on which such recognition is based.
14. Member States shall ensure that any available support for cogeneration is subject to the electricity produced originating from high-efficiency cogeneration and the waste heat being effectively used to achieve primary energy savings. Public support to cogeneration and district heating generation and networks shall be subject to State aid rules, where applicable.
Energy transformation, transmission and distribution
1. National energy regulatory authorities shall apply the energy efficiency first principle, in accordance with Article 3 of this Directive, in carrying out the regulatory tasks provided for in Directives 2009/73/EC and (EU) 2019/944 regarding their decisions on the operation of the gas and electricity infrastructure, including their decisions on network tariffs. In addition to the energy efficiency first principle, national energy regulatory authorities may take into account cost efficiency, system efficiency and security of supply, and market integration, while safeguarding the Union’s climate targets and sustainability, as set out in Article 18 of Regulation (EU) 2019/943 and in Article 13 of Regulation (EC) No 715/2009.
2. Member States shall ensure that gas and electricity transmission and distribution system operators apply the energy efficiency first principle, in accordance with Article 3 of this Directive, in their network planning, network development and investment decisions. National regulatory authorities or other designated national authorities shall verify that methodologies used by transmission system operators and distribution system operators assess alternatives in the cost-benefit analysis and take into account the wider benefits of energy efficiency solutions, demand-side flexibility and investment into assets that contribute to climate change mitigation. National regulatory authorities and other designated authorities shall also verify the implementation of the energy efficiency first principle by the transmission system operators or distribution system operators when approving, verifying or monitoring their projects and network development plans pursuant to Article 22 of Directive 2009/73/EC and to Article 32(3) and Article 51 of Directive (EU) 2019/944. National regulatory authorities may provide methodologies and guidance on how to assess alternatives in the cost-benefit analysis in close cooperation with the transmission system operators and distribution system operators, which can share key technical expertise.
3. Member States shall ensure that transmission and distribution system operators monitor and quantify the overall volume of network losses and, where it is technically and financially feasible, optimise networks and improve network efficiency. Transmission and distribution system operators shall report those measures and expected energy savings through the reduction of network losses to the national energy regulatory authority. Member States shall ensure that transmission and distribution system operators assess energy efficiency improvement measures with regard to their existing gas or electricity transmission or distribution systems and improve energy efficiency in infrastructure design and operation, especially in terms of smart grid deployment. Member States shall encourage transmission and distribution system operators to develop innovative solutions to improve the energy efficiency of existing and future systems through incentive-based regulations in accordance with the tariff principles set out in Article 18 of Regulation (EU) 2019/943 and Article 13 of Regulation (EC) No 715/2009.
4. National energy regulatory authorities shall include a specific section on the progress achieved in energy efficiency improvements regarding the operation of the gas and electricity infrastructure in the annual report drawn up pursuant to Article 41 of Directive 2009/73/EC and pursuant to Article 59(1), point (i), of Directive (EU) 2019/944. In those reports, national energy regulatory authorities shall provide an assessment of the overall efficiency in the operation of the gas and electricity infrastructure, the measures carried out by transmission and distribution system operators and, where applicable, provide recommendations for energy efficiency improvements, including cost-efficient alternatives that reduce peak loads and overall electricity use.
5. For electricity, Member States shall ensure that network regulation and network tariffs fulfil the criteria set out in Annex XIII, taking into account network codes and guidelines developed pursuant to Regulation (EU) 2019/943 and the obligation set out in Article 59(7), point (a), of Directive (EU) 2019/944 to allow for necessary investments in the networks to be carried out in a manner ensuring the viability of the networks.
6. Member States may permit components of schemes and tariff structures with a social aim for net-bound energy transmission and distribution, provided that any disruptive effects on the transmission and distribution system are kept to the minimum necessary and are not disproportionate to the social aim.
7. National regulatory authorities shall ensure the removal of those incentives in transmission and distribution tariffs that are detrimental to the energy efficiency of the generation, transmission, distribution and supply of electricity and gas. Member States shall ensure efficiency in infrastructure design and the operation of the existing infrastructure, in accordance with Regulation (EU) 2019/943, and that tariffs allow for demand response.
8. Transmission system operators and distribution system operators shall comply with Annex XIV.
9. Where appropriate, national regulatory authorities may require transmission system operators and distribution system operators to encourage high-efficiency cogeneration to be located close to areas of heat demand by reducing the connection and use-of-system charges.
10. Member States may allow producers of electricity from high-efficiency cogeneration wishing to be connected to the grid to issue a call for tender for the connection work.
11. When reporting under Directive 2010/75/EU, and without prejudice to Article 9(2) of that Directive, Member States shall consider including information on energy efficiency levels of installations undertaking the combustion of fuels with total rated thermal input of 50 MW or more in the light of the relevant best available techniques developed in accordance with Directive 2010/75/EU.
