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Buildings

Owning, developing, and managing buildings has become more complicated  as regulations have proliferated throughout Europe to mitigate climate change.

High energy prices, together with the desire for greater European energy security, have added pressure to the timetable for achieving enhanced levels of energy efficiency and more renewable generation.

Fit-for-55 and the buildings sector

The EU’s Fit-for-55 legislative package, augmented by the REPowerEU initiative, is driving a regulatory programme to deliver, amongst other things, more energy generation, increased energy storage, and mandatory EV charging infrastructure in both new and existing buildings.

Of the EU directives and regulations that underpin Fit-for-55, and ultimately the European Green Deal, those listed in our table are particularly relevant for the commercial and residential buildings sector. These directives are complex, so visit our Insights page to find out more. 

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Energy Performance of Buildings Directive

Seeks better energy performance from new and renovated buildings.

Requires mandatory home and workplace charging.

Energy Efficiency Directive 
Promotes ‘energy efficiency first’

 

Requires energy saving from buildings and data centres. 
Renewable Energy Directive 
Sees buildings and electric vehicles as flexibility assets serving the future grid’s capacity needs. The latest iteration is RED III.
Requires flexible energy systems incorporating renewables and smart electric vehicle charging.

Alternative Fuels Infrastructure Regulation

*Replaces the Alternative Fuels Infrastructure Directive (AFID).

Requires smart charging capabilities​ of all publicly accessible charging stations.
* EU Regulations, such as the AFIR, are directly applicable in Member States.

ZEBs and NZEBs

ZEBs (zero-emission buildings) will replace NZEBs (nearly zero-energy buildings) as part of the revised EPBD. Note the change from ‘nearly zero-energy’ to ‘zero-emission’ which is a much more stringent requirement. The revision will have a big impact on commercial, residential, and mixed-use buildings. It will mean that the EU Nearly Zero-Energy Strategy, which has been in place for more than a decade, will be replaced by the ZEB requirement for all new public buildings from 1 January 2027, and all new buildings from 1 January 2030.

REPowerEU

Part of the REPowerEU plan, the EU Solar Energy Strategy aims to bring online 320 GW of new solar photovoltaic capacity by 2025, which is more than twice the level in 2022, rising to 600 GW by 2030. The initiative will introduce obligatory solar installation on some buildings for use on-site. Another key plank of REPowerEU is the ambition to double the current deployment rate of heat pumps to deliver a cumulative 10 million units over the next five years. Developing and modernising district heating system will be part of this.

Buildings as a Grid

We launched our Buildings as a Grid approach to energy transition in March 2021. The approach provides capabilities that fully align with the policy ambitions of the EU Green Deal and Fit-for-55. It is suitable for new-build and renovation projects, and it is cost-effective because it can be initiated without grid upgrades and scaled up, as required. Buildings as a Grid manages bi-directional energy flows, where they are possible, including between EVs and buildings to make the most of EV battery capacity as an energy store.

Homes as a Grid

Sector coupling will be vitally important to homeowners because it introduces flexibility into energy management. That means we can expect to see housing developers, housebuilders, real estate managers, architects, and buildings engineers, thinking through sector coupling for their projects. Our Homes as a Grid approach is linked to sector coupling. It unites the power needs of buildings and EVs with on-site renewable energy generation and supports the operation of EV charging infrastructure.