News Release
Media contacts:
Jessica Stromback
Smart Energy Demand Coalition
+358 449066821
[email protected]
www.sedc-coalition.eu
Nicolas Muzi
Weber Shandwick
+32 2 894 90 44
[email protected]
EU Governments’ Energy Efficiency Directive Draft faces a €5bn Loss
Deletions in the new Energy Efficiency Directive result in loss of €3.5 - 5 billion
per year in new direct revenues for local businesses in Europe
Brussels, Belgium – 18 April, 2012 – The Smart Energy Demand Coalition (SEDC) projects that
European Council’s version of the Energy Efficiency Directive (EED) could prevent European
businesses from generating between €3.5 and €5.0 billion a year in new direct revenues from
their participation in the energy markets. The European Parliament’s Energy Committee (ITRE)
introduced amendments to the Directive to ensure end-customers’ active participation in the
electricity market and to create more consistent electricity usage over the day - known as
“Demand Response”. Those amendments were rejected by the Danish presidency and the
Council.
“We wish to express our disappointment and concern regarding the European Council’s stated
reluctance to consider the ITRE Committee’s proposed amendments on demand response and
consumer feedback,” said Jessica Stromback, SEDC Executive Director.
Demand response – empowering consumers to manage their electricity bill
Demand Response offers several important environmental and financial benefits within today’s
electricity markets. International studies demonstrate that people utilising demand response and
feedback programmes can reduce their peak electricity demand by over 20% and lower their total
consumption by approximately 9%. At the EU level and taking into consideration the entire
population (including residential, commercial and industrial consumers who would not participate
in demand response programmes), demand response programmes could reduce total overall
energy consumption by 1.5% and help effectively contribute to Europe 2020 targets.
Demand response substantially reduces the need for peak generation by shifting consumption
away from peak hours, lowering green-house gas (GHG) emissions and reducing wholesale
energy costs. It also decreases the need for network investments, as it shifts consumption away
from peak hours in regions with a tight network capacity.
Demand response delivers these benefits through providing residential, commercial1 or industrial
consumers– with information, control signals, and financial incentives (often direct payments) to
lower or adjust their consumption at strategic times.
Keeping revenue local
The majority of revenue from demand response programmes flows to end users, and stays within
the local communities whilst contributing to local businesses. The demand response market in the
USA is already generating approximately $6 billion in annual direct revenues for American
1The term “commercial” refers to all buildings and businesses which are not directly industrial or
residential; in other words, municipal buildings, SMEs, businesses such as hotels, office spaces, etc.
businesses as well as gaining indirect earnings through fewer investments.
In Europe at the moment, there are significant regulatory barriers in over 23 of the 27 Member
States, which impede the establishment of Demand Response programmes and the ability of third
parties, such as aggregators, to enter these markets.
The Parliamentary amendments to Article 12 of the Energy Efficiency Directive would significantly
improve this situation by providing essential consumer access to the electricity markets. The
amendments would also encourage National Regulatory Authorities (NRAs) and transmission
system operators (TSOs) to define the technical specifications needed for consumers to
participate and profit from demand response programmes.
This amendment is currently being ignored by the European Council. The omission will not only
lower the environmental benefits of the EED, but block European consumers’ access to billions of
Euros in new, environmentally friendly revenue streams, at a time of widespread financial
uncertainty.
Jessica Stromback stated: “SEDC has found that sustainable changes in the energy consumption
habits of end consumers are indispensable for substantial and lasting energy efficiency gains.
Unless people know how much energy they are consuming, and how much it costs, they will be
unable to adjust their consumption behaviour and make a meaningful contribution to energy
efficiency in Europe. The SEDC therefore strongly encourage Council Members to re-consider
provisions recommended by the European Commission and the ITRE Committee in Articles 8
and 12 and Annex VI of the EED”.
About the Smart Energy Demand Coalition (SEDC)
The SEDC is an industry group, which represents the requirements of programmes involving
smart energy demand in order to further the development of the Smart Grid and ensure improved
end-consumer benefits.
The SEDC vision is to promote the active participation by the demand side in European electricity
markets, ensure consumer benefits, sustainability, competitiveness and energy efficiency.
The SEDC focus is to promote Demand Side programmes such as peak clipping and shifting,
energy usage feedback and information, smart home, in-home and in-building automation,
electric vehicle charging management, and other programmes related to making demand a smart,
interactive part of the energy value.
The views expressed in this document represent the views of the SEDC as an organisation but
not necessarily the point of view of any specific SEDC member.