Energy efficiency obligation system

A study by the European Industrial Insulation Foundation (EiiF) found that approx. 10% of insulated surfaces in Europe have incomplete, low quality, decades’ old insulation dating back to the industrial boom. Adequate insulation of such surfaces could save up to 9.5 million GJ of energy in Hungary alone, a significant amount even when focusing exclusively on cases where insulation is a viable option in purely economic terms. The whole of such energy savings is fully eligible under the Energy Efficiency Obligation Scheme (EEOS).

In its National Energy and Climate Plan Hungary set itself a goal of restricting its final energy consumption by 2030 to a maximum of 785 PJ, the amount recorded in 2005. This requires the saving of 0.8% energy each year between 2021 and end-2030, along with an additional annual 7 PJ new energy savings, assuming the adoption of policy measures of lifetimes covering the entire period. The energy efficiency programmes and measures introduced during the 2014–2020 period resulted in final energy savings of around 3-4 PJ per year, therefore the current rate of savings needs to be doubled from 2021 on. From 1 January 2021 therefore the introduction of a new policy instrument, the so-called energy efficiency obligation scheme under the Energy Efficiency Directive, was commenced.

The key element of the system that has been successfully operating in as many as 16 Member States of the Union is that the entities concerned are obliged to introduce programmes and implement measures that result in verified energy savings on the part of end-users. Examples for certified energy efficiency investments at end-user sites include replacing old, inefficiently operating production lines with modern ones, renovating buildings, etc. The obligation scheme will benefit domestic business and household end-consumers, while maintaining the stability of household energy prices.