European Energy Directive Article 7: Recent EU and Global Experience
Eoin Lees provided European Bank for Reconstruction and Development (EBRD) staff with an in-depth review of Article 7 of the European Energy Directive (EED), which requires Member States to implement an energy efficiency obligation (EEO) scheme. He provided insight into the growing importance of this policy tool in meeting Member States’ energy savings targets for the years 2014 through 2020. By focusing on the various forms of EEOs, their wide and flexible use around the world, recent EU experience, and lessons learned, Mr. Lees framed the role of EEOs as part of a well-defined energy efficiency policy. This mechanism delivers energy savings cost effectively, despite great variation in its implementation. As a result, Member States with EEOs have evaluated and expanded their programs in recent years. The largest program, in Great Britain, contributed to a 22 percent reduction in residential gas demand over a four-year period.