The EEP principle states that, before investing in new energy production or distribution capacity, Member States and major investment decision-makers must assess whether an energy efficiency solution can be equally effective and more cost-efficient.

The principle applies to planning, policy and investment decisions exceeding EUR 100 million (or EUR 175 million for transport infrastructure) that affect energy consumption or supply. It affects both the public and private sectors, and sectors as diverse as energy, construction, transport, water, ICT, agriculture and finance.

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The key concept: “added benefits”.

One of the most relevant elements of this Recommendation is that it forces us to go beyond simple energy savings when evaluating an investment. Analyses must incorporate the so-called added benefits, which are all those positive impacts generated by energy efficiency beyond the reduction of the energy bill. They are classified into three categories:

• Social benefits: improvement of public health, thermal comfort, reduction of energy poverty, increase of real estate value, improvement of labor productivity.
• Environmental benefits: reduction of GHG emissions, improved air quality, reduced use of water and natural resources, waste reduction.
• Economic benefits: security of energy supply, job creation, increased GDP, improved competitiveness and innovation, increased disposable income.

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What does this mean for industrial suppliers?

This Recommendation has practical implications for companies:

• Reinforces demand for efficient equipment. Public administrations, energy companies and large industrial operators throughout the EU will be increasingly obliged to justify their investments in this light. This means that equipment with better energy performance will have an increasing competitive advantage in procurement and tendering processes.
• Affects marketing strategy. The sales argument can no longer be limited to price or production capacity: the European buyer will want to know what the equipment’s lifetime energy consumption is, what savings it generates compared to the alternative, and what indirect benefits it brings. Companies that know how to quantify and communicate these arguments will have a stronger position.