EED and EPBD – The New EU Requirements Transforming the Real Estate Industry

From energy targets to concrete building requirements

The EU has set ambitious climate targets to reduce energy consumption and greenhouse gas emissions. Two of the most important legislative frameworks affecting property owners, housing companies, and energy managers are the EED (Energy Efficiency Directive) and the EPBD (Energy Performance of Buildings Directive).

Both directives aim to create more energy-efficient buildings, but they focus on different areas. Together, they entail increased requirements for measurement, data collection, energy efficiency improvements, and follow-up.

For property owners, this means that access to accurate energy data becomes an increasingly important part of daily management.

What is EED?

EED, the Energy Efficiency Directive, is the EU's Energy Efficiency Directive. Its purpose is to reduce energy consumption across the entire Union and give energy users a better opportunity to understand and influence their consumption.

For multi-apartment buildings with central heating or central cooling, EED, among other things, sets requirements for:

  • Individual metering when technically possible and economically reasonable.
  • Regular information on energy consumption to residents.
  • Opportunity for users to monitor their own energy consumption.
  • More frequent collection of meter data from energy meters.

The rationale is simple – when people gain insight into their energy consumption, usage tends to decrease. Studies show that individual metering and feedback often lead to energy savings of between 10 and 20 percent.

What is EPBD?

EPBD, the Energy Performance of Buildings Directive, is the EU Directive on the Energy Performance of Buildings.

The revised directive means that buildings must become significantly more energy-efficient and contribute to the EU's goal of a climate-neutral building stock by 2050.

Key areas of focus include:

  • Renovation of buildings with low energy performance.
  • Reduced energy consumption in existing buildings.
  • Increased digitalization and smart control.
  • Preparations for smart energy systems and flexibility in the electricity grid.
  • Integration of renewable energy and charging infrastructure.

The EPBD specifically highlights the importance of smart buildings where energy systems, sensors, and control functions interact to optimize energy consumption.

Common denominator: Access to the right energy data

Although the EED and EPBD have different focus areas, there is a clear common denominator: access to reliable energy data.

You can't improve energy efficiency if you can't measure it.

To meet both current and future requirements, property owners need to be able to collect data from sources such as:

  • Electricity meters
  • Water meters
  • Heat meters
  • Cooling meters
  • Temperature sensors
  • CO₂ sensors
  • Building automation systems

Data also needs to be available for monitoring, analysis, and integration with higher-level systems for energy management, building automation, and individual metering and billing (IMD).

Digitalization becomes key to energy efficiency

A significant change in both the EED and EPBD is that the focus is shifting from solely energy savings to data-driven energy management.

Property owners are increasingly expected to be able to:

  • Monitor energy consumption in real time.
  • Identify anomalies and energy waste.
  • Optimize heating and ventilation systems.
  • Automate energy reporting.
  • Streamline energy performance certificates and sustainability reporting.

Success requires open systems that enable data collection and sharing between various platforms and providers.

How can property owners prepare?

Many properties already have meters installed, but the challenge often lies in efficiently collecting and making that data available.

By investing in open data collection platforms and standardized communication protocols such as M-Bus, Wireless M-Bus, Modbus, and OMS, a future-proof foundation is established that can adapt to new regulations and operational requirements.

It also provides the freedom to integrate different systems without becoming dependent on a single vendor.

Key Milestones in EED and EPBD

EU energy and climate legislation includes several concrete targets that property owners and building managers should be aware of.

EED – Energy Efficiency Directive

The Energy Efficiency Directive (EED) is part of the EU's Fit for 55 package and aims to reduce energy consumption across the European Union. The directive requires Member States to collectively reduce final energy consumption by approximately 11.7% by 2030 compared to previously projected energy use levels.

For property owners, this translates into increased requirements for energy efficiency measures, metering, monitoring, and reporting of energy consumption.

EPBD – Energy Performance of Buildings Directive

The revised Energy Performance of Buildings Directive (EPBD) introduces several important milestones:

  • By 2028, all new publicly owned buildings must be Zero-Emission Buildings (ZEBs).
  • By 2030, all new buildings within the EU must be Zero-Emission Buildings.
  • By 2030, the residential building sector as a whole must reduce its average primary energy consumption by at least 16% compared to current levels.
  • By 2035, this reduction must reach 20–22%.
  • By 2050, the overarching goal is for the entire European building stock to become climate-neutral.

The directive does not impose identical requirements on every individual building. Instead, Member States are required to develop national renovation plans that focus on gradually improving the energy performance of the least efficient buildings.

What Does This Mean for Property Owners?

Although many of these targets are several years away, preparation needs to start today. Property owners who have access to accurate energy data, submetering systems, temperature monitoring, and connected building technologies will be significantly better positioned to comply with future regulations while simultaneously reducing energy costs and improving operational efficiency.

Summary

EED and EPBD will play a central role in the transition to more energy-efficient buildings in Europe.

For property owners, it's no longer solely about installing energy-efficient equipment. Equally important is the ability to measure, monitor, and analyze energy consumption in a structured manner.

Property owners who establish a modern and open infrastructure for energy data today will be better positioned to meet future regulatory demands, reduce energy costs, and create more sustainable properties.

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EED and EPBD – The New EU Requirements Transforming the Real Estate Industry

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