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Indicator Specification

# Progress on energy efficiency in Europe

Indicator Specification
Indicator codes: ENER 037
This is an old version, kept for reference only.

Topics:
This page was archived on 20 Feb 2019 with reason: Other (New version data-and-maps/indicators/progress-on-energy-efficiency-in-europe-3 was published)
The ODEX index (Figure 1) measures energy efficiency progress by the main sectors (industry, transport and households), as well as for the whole economy (all final consumers). For each sector, the index is calculated as a weighted average of sub-sectoral indices of energy efficiency progress; the sub-sectors are the industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units and selected so as to provide the best “proxy” of energy efficiency progress from a policy evaluation viewpoint. The fact that indices are used enables different units to be combined for a given sector, for instance, for households kWh per appliance, koe/m 2 , tep per dwelling etc. The weight used to get a weighted aggregate is the share of each sub-sector in the total energy consumption of the sub–sectors considered in the calculation.  A value of ODEX equal to 90 means a 10 % energy efficiency gain. The variation of the specific consumption of space heating per dwelling linked to building standards is modelled as the change brought about by the introduction of new dwellings with better insulation than the whole stock, since a base year (e.g. 1990), assuming that the unit consumption of new dwellings is equal to the theoretical value implied by thermal regulations (Figure 2). This effect is calculated as follows: ∆UCnew t = (UCnew t * nbrlpn t + ∆UCnew t-1 * (nbrlpr t – nbrlpn t )) / nbrlpr t with:  ∆UCnew t=0 = ∆UCnew t=1990 = UC t=1990 nbrlpr t : stock of dwellings at year t nbrlpn t : the volume of construction at year t   UC t : unit consumption per dwelling for space heating at year t
This indicator is discontinued. No more assessments will be produced.

## Assessment versions

##### Published (reviewed and quality assured)
• No published assessments

### Rationale

#### Justification for indicator selection

Energy efficiency and energy consumption are intrinsically linked. Increased energy efficiency can lead to significant reductions in energy consumption provided that measures are in place to discourage the occurrence of rebound effects. Reducing energy consumption as a result of progress in energy efficiency and behavioural changes can lead to significant reductions in the environmental pressures associated with energy production and consumption.

#### Scientific references

• No rationale references available

### Indicator definition

The ODEX index (Figure 1) measures energy efficiency progress by the main sectors (industry, transport and households), as well as for the whole economy (all final consumers). For each sector, the index is calculated as a weighted average of sub-sectoral indices of energy efficiency progress; the sub-sectors are the industrial or service sector branches or end-uses for households or transport modes.

• The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units and selected so as to provide the best “proxy” of energy efficiency progress from a policy evaluation viewpoint. The fact that indices are used enables different units to be combined for a given sector, for instance, for households kWh per appliance, koe/m2, tep per dwelling etc.
• The weight used to get a weighted aggregate is the share of each sub-sector in the total energy consumption of the sub–sectors considered in the calculation.

A value of ODEX equal to 90 means a 10 % energy efficiency gain.

The variation of the specific consumption of space heating per dwelling linked to building standards is modelled as the change brought about by the introduction of new dwellings with better insulation than the whole stock, since a base year (e.g. 1990), assuming that the unit consumption of new dwellings is equal to the theoretical value implied by thermal regulations (Figure 2).

This effect is calculated as follows:

∆UCnewt = (UCnewt * nbrlpnt + ∆UCnewt-1 * (nbrlprt – nbrlpnt)) / nbrlprt

with:  ∆UCnewt=0 = ∆UCnewt=1990 = UCt=1990

nbrlprt: stock of dwellings at year t

nbrlpnt: the volume of construction at year t

UCt: unit consumption per dwelling for space heating at year t

### Units

The ODEX index (Figure 1) is represented in percentage change compared with 1990 levels. Improvements in the energy performance of buildings as a result of tightening building codes are also represented in percentage change compared with 1990 levels (Figure 2). The effects of the main drivers influencing progress in energy efficiency are represented in percentage change compared with 1990 levels (Figure 3). Energy consumption per square metre for households (climate corrected) is represented as percentage change compared with a baseline year (1990, 2000). Energy consumption for space heating per square metre for households (climate corrected) is expressed in kWh/m2 (Figure 4). The energy consumption for space heating is expressed in kWh/m2 (Figure 5). Energy consumption for space cooling is represented both in kWh/m2 of average floor area, as well as kWh/m2 of air conditioned space (Figure 6).

### Energy Efficiency Directive (EED)

The EED was approved by the European Parliament on 11 September 2012: it includes a set of new measures to meet the EU’s 2020 energy efficiency target to reduce the EU primary energy consumption by 20 %. Related documents are available at: http://ec.europa.eu/energy/efficiency/eed/eed_en.htm. The legal definition and quantification of the EU energy efficiency target is the ''Union's 2020 energy consumption of no more than 1 474 Mtoe primary energy or no more than 1 078 Mtoe of final energy''. With the accession of Croatia, the target was revised to "1 483 Mtoe primary energy or no more than 1 086 Mtoe of final energy''. Following Article 3 of the EED, each Member State had to submit a report to the Commission including an indicative national energy efficiency target for 2020 (http://ec.europa.eu/energy/efficiency/eed/reporting_en.htm).

### National Energy efficiency Action Plan (NEEAP)

NEEAPs are intended to set energy savings targets and propose concrete measures and actions that would contribute to meeting the targets. They are submitted every three years: the third NEEAPs were submitted in April 2014.

### Regulation on emissions for new cars (2009/443) and new light commercial vehicles (2011/510)

Mandatory CO2 standards for new passenger cars were introduced in 2009. The 2009 regulation set a 2015 target of 130 g/km for the fleet average of all manufacturers combined.

Individual manufacturers were allowed a higher CO2 emission value depending on the average vehicle weight of their fleet. The heavier the average weight of the cars sold by a manufacturer, the higher the CO2 level allowed. A similar CO2 standard for new light-commercial vehicles was introduced in 2011. It set a target of 175 g/km for 2017. In July 2012, the European Commission put forward two regulatory proposals to set mandatory CO2 standards for new cars and vans in 2020. Target values of 95 g/km of CO2 for the new car fleet and 147 g/km of CO2 for vans for 2020 have been set.

### Energy Performance of Buildings Directive: recast version in 2010 (2010/31/EU) EPBD, 2002/91/EC

The Directive on Energy Performance in Buildings (EPBD) is the main legislative instrument affecting energy use and efficiency in the building sector in the EU. The Directive tackles both new build and existing housing stock. Originally approved in 2002, this Directive is now being replaced by a recast Directive that was approved on 19 May 2010.

### Energy Labelling Directive: recast version in 2010 (2010/30/EC) Directive 92/75/EEC

The Energy Labelling Directive 2010/30/EU is a framework Directive that facilitates the labelling of products so that the power consumption of one make and model can be compared to another, allowing consumers to make informed purchasing decisions.

### Ecodesign Directive: recast version in 2009 (2009/125/EC)/(2005/32/EC)

The Ecodesign Directive sets a framework for performance criteria for energy-using and energy-related products, which manufacturers must meet in order to legally bring their product to the market. Minimum requirements have to be fulfilled by appliances to get the European Commission label and to be introduced in the European market.

The first Directive was adopted in 2005. Its scope was expanded in 2009 to all energy-related products. From September 2015, the Ecodesign Directive will concern heating equipment and the production of hot water, defining new levels of performance and features to meet new energy labels.

### Energy Services Directive: (ESD) 2006/32/EC

This directive sets out targets for annual energy savings of 1 % per year for each Member State between 2008 and 2012. For the same period, strong incentives were given by the Directive for Member States to ensure that suppliers of energy offer a certain level of energy service.

### A Roadmap for moving to a competitive low carbon economy in 2050 (COM(2011) 112 final)

The Roadmap presents actions in line with the reduction of greenhouse gas emissions by 80-95 % by 2050.

### Energy 2020, A strategy for competitive, sustainable and secure energy COM(2010) 639 final

The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions sets out as first priority, four types of action to achieve an energy-efficient Europe:

• Action 1: Tapping into the biggest energy-saving potential — buildings and transport.
• Action 2: Reinforcing industrial competitiveness by making industry more efficient.
• Action 3: Reinforcing efficiency in energy supply.
• Action 4: Making the most of National Energy Efficiency Action Plans.

### Adoption of the 'energy-climate'' package on December 2008 (also called the ''20-20-20 plan")

This package sets legally binding targets to cut greenhouse gas emissions to 20 % below 1990 levels and to increase the share of renewable energy to 20 %, both by 2020 (10 % in transport). It will also help achieve the EU's objective of improving energy efficiency by 20 % within the same time frame.

The climate and energy package consists of four legislative texts:

-        A Directive revising the EU Emissions Trading System (EU ETS), which covers some 40 % of EU greenhouse gas emissions;

-        An "effort-sharing" Decision setting binding national targets for emissions from sectors not covered by the EU ETS;

-        A Directive setting binding national targets for increasing the share of renewable energy in the energy mix; and

-        A Directive creating a legal framework for the safe and environmentally sound use of carbon capture and storage technologies.

### Energy efficiency: delivering the 20 % target - COM(2008) 772 final

European leaders committed themselves to reducing primary energy consumption by 20 % compared to projections for 2020. Energy efficiency is the most cost-effective way of reducing energy consumption while maintaining an equivalent level of economic activity. Improving energy efficiency also addresses the key energy challenges of climate change, energy security and competitiveness.

#### Targets

Directive 2012/27/EU on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Union in order to achieve the headline target of a 20 % reduction in primary energy consumption. Member States are requested to set indicative targets. It is up to the Member states whether they base their targets on primary energy consumption, final energy consumption, primary or final energy savings or energy intensity. However, this indicator does not monitor progress at EU level on the energy efficiency target (different methodologies may be applied for this purpose particularly if the emphasis is on energy savings) but it does provide an indication of progress to date in achieving energy efficiency (in this context energy efficiency means mainly improvements in technological performance).

### Technical information

• Data sources:
• Energy consumption by sector from Eurostat energy balances (July 2015)
• Detailed energy consumption and their drivers from the Odyssee database, Enerdata, September 2015 update; the Odyssee database covers detailed energy consumption by sector, by fuel and by end-uses for the EU as a whole, and Norway.
• Description of data/indicator definition:
• Energy efficiency index (Figure 1).

The ODEX indicator, or energy efficiency index, is calculated for each end-use sector (industry, transport, residential and tertiary) and for the whole economy (all end-use sectors).

For each sector, the index is calculated as a weighted average of sub-sectoral indices of energy efficiency progress; sub-sectors are industrial or service sector branches or end-uses for households or transport modes. The sub-sectoral indices are calculated from variations of unit energy consumption indicators, measured in physical units (for instance tons of steel, tonne-km for transport of goods, m² for offices, etc.). They provide the best “proxy” of energy efficiency progress from a policy evaluation viewpoint. All these sub-sectoral indices are then aggregated and weighted by their respective share in the final energy consumption of the sector to a single energy efficiency index or ODEX that measures energy efficiency progress.

A decrease in the specific energy consumption indicators indicates that energy efficiency has been improving, if not it results in negative energy efficiency improvements, maybe due to inefficient use of equipment, as is often observed for instance during an economic recession. Therefore, it is necessary to separate technical efficiency from observed efficiency. This is done for the ODEX (see dedicated sheet) by calculating a technical energy efficiency index (in this case we only consider decreases in specific consumption (if not the index remains constant). A value of the energy efficiency index equal to 90 means a 10 % energy efficiency gain.

For industry, the evaluation is carried out at the level of 14 branches:

• 8 main branches: chemicals, food, textile and leather, machinery, transport equipment, wood, construction, mining;
• 3 energy intensive branches: steel, cement and pulp and paper
• 3 residual branches: other primary metals (i.e. primary metals minus steel), other non-metallic minerals (i.e. non-metallic minerals minus cement, other branches).

The unit consumption is expressed in terms of energy used per ton produced for energy intensive products (steel, cement and paper) and in terms of energy used related to the production index for the other branches.

For the transport sector, the evaluation is carried out at the level of seven modes or vehicle types: cars, trucks and light vehicles, motorcycles, buses, air transport, rail and water transport.

For cars, energy efficiency is measured by the specific consumption, expressed in litres/100km.

For the transport of goods (trucks and light vehicles), the unit consumption per tonne-km is used, as the main activity is to move goods.

For other modes of transport, various indicators of unit consumption are used, taking for each mode the most relevant indicator given the statistics available:

• toe per passenger for air transport,
• goe per passenger km for passenger rail,
• goe per transport km for transport of goods by rail and water,
• toe per vehicle for motorcycles and buses.

For households, the evaluation is carried out at the level of three end-uses (heating, water heating, cooking) and five large appliances (refrigerators, freezers, washing machines, dishwashers and TVs).

For each end-use, the following indicators are considered to measure efficiency progress:

• Heating: unit consumption per m2 at normal climate (toe/m2)[1]
• Water heating: unit consumption per dwelling with water heating;
• Cooking: unit consumption per dwelling;
• Large electrical appliances: specific electricity consumption, in kWh per year per appliance.

For tertiary, the energy efficiency index is calculated by branches (e.g. six branches, including offices, education, health, wholesale and retail, hotels and restaurants, and other services) based on the energy consumption per employee. For some countries and the EU as a whole (due to lack of data or robust data by branches), the index is calculated using aggregate indicators, i.e. fuel and electricity consumption per employee.

• Energy consumption of households by end-use (Figure 2-5).

The energy consumption of households can be disaggregated to cover different end-uses: space heating, water heating, cooking, cooling, lighting and electrical appliances.

Household energy consumption for space heating per dwelling relates the energy consumption of the household sector for space heating to the number of permanently occupied dwellings. Household energy consumption for space heating per square metre is obtained by dividing the unit consumption per dwelling.

Household energy consumption for cooling per square metre is obtained by dividing the energy consumption per dwelling for space cooling by cooled floor area (cooled floor area is calculated by multiplying the average floor area by the number of permanent dwellings and the share of dwellings with air conditioning).

Household energy consumption of electrical appliances per dwelling is calculated by dividing the electricity consumption for all appliances by the number of permanently occupied dwellings. The electrical appliances considered here are all those with specific (captive) uses of electricity. Space heating systems, water heaters or cooking appliances are not included.

Total floor area represents the average floor area of a dwelling multiplied by the number of dwellings. It is expressed in m2.

• Drivers for change in the energy consumption per dwelling in households (Figure 6).

The energy consumption per dwelling can be explained by four factors:

• Equipment ownership effect, due to the increased number of appliances per dwelling (central heating effect, increasing number of electrical appliances, diffusion of efficient lamps etc.);
• Size effect, due to larger dwellings;
• Efficiency progress, as measured by ODEX (see definition above);
• Other effects (mainly change in heating behaviour).
• Geographical coverage:
EU-28 countries plus Norway.
• Methodology and frequency of data collection:
Data collected twice a year in the framework of the ODYSSEE MURE project (http://www.odyssee-mure.eu/)

### Qualitative information

• Strengths and weaknesses (at data level)
Last Odyssee update: September 2015
• Reliability, accuracy, robustness, uncertainty (at data level):
Accuracy: 2
• Overall scoring – (1 = no major problems, 3 = major reservations):

Relevance: 1
Accuracy: 2
Indicators used in the ODYSSEE database are comparable over time and space. Raw data collected have the same clear definition, as do indicators.

#### Methodology for gap filling

To calculate the ODEX (Figure 1), data submitted to the ODYSSEE project by countries on a voluntary basis are used. Not all countries submit the necessary data. Therefore, for the EU-28, data extrapolations based as far as possible on Eurostat supporting data (e.g. growth rates, shares of various energy forms in final energy consumption, etc) are used. In this way some consistency between the top-down calculations and the bottom-up calculations made for specific countries is ensured (also country data make use of Eurostat where possible).

To calculate the effect of new building codes (Figure 2), the theoretical unit consumption of new dwellings for the EU as a whole is based on an extrapolation from 11 representative countries (Italy, France, Denmark, Sweden, Netherlands, Germany, Austria, Poland, Czech Republic, Hungary and Slovakia). The theoretical consumption for new dwellings by country is weighted according to annual construction to be able to produce results at EU level.

### Data specifications

#### EEA data references

• No datasets have been specified here.

### Uncertainties

#### Methodology uncertainty

No uncertainty has been specified

#### Data sets uncertainty

The ODYSSEE database contains energy consumption and its drivers, which are provided by energy agencies or their representatives in all EU countries and Norway. Quality control checks are performed to ensure the good quality of the database and to improve the transparency, consistency, comparability, completeness and accuracy of data retrieved from the ODYSSEE database. Examples of general quality control checks include checking for transcription errors in data inputs, checking of source reliability, checking the inner consistency of data (e.g. the sum of energy consumption by residential end-uses is coherent with total residential consumption), consistency with other sources (e.g Eurostat), checking that indicators are calculated correctly (through graphical representation over years to check discrepancy or outliers between countries).

#### Rationale uncertainty

No uncertainty has been specified

### Further work

#### Short term work

Work specified here requires to be completed within 1 year from now.

#### Long term work

Work specified here will require more than 1 year (from now) to be completed.

Anca-Diana Barbu

#### Ownership

European Environment Agency (EEA)

#### Identification

Indicator code
ENER 037
Specification
Version id: 2
Primary theme: Energy

This indicator is discontinued. No more assessments will be produced.

#### Classification

DPSIR: Response
Typology: Efficiency indicator (Type C - Are we improving?)