Navigating Revised Energy Performance of Buildings Directives (EPBD) and the Journey Ahead
Studies indicate that buildings consume approximately 30–40% of the world's energy and are responsible for up to 33% of greenhouse gas (GHG) emissions globally. Commercial buildings consume about 10–20 times more energy than residential buildings, at around 70–300 kWh/m2.
European Union (EU) buildings are no different, and research indicates that these buildings are responsible for nearly 40% of the EU’s overall energy consumption, more than the gas consumption for heating, cooling, and domestic hot water usage leading to almost 36% of GHG emissions related to energy usage. Another study shows that 35% of EU buildings are over 50 years old, and 75% of these buildings are not energy efficient. Compounding these challenges, the average annual energy renovation rate was only 1% in 2023, owing to which the EU Commission has now devised a plan to double the renovation rates by 2030 to improve the energy efficiency of these buildings and transition to renewable sources of energy for these facilities.
The Energy Performance of Buildings Directive (2024), effective May 2024, targets decarbonizing EU buildings by 2050. It considers various climatic and local conditions, indoor environmental quality, and cost to accelerate building renovation rates and improve energy performance.
Need for better performance and energy-efficient buildings
With the revised directive (EPBD, 2024), the EU Commission has directed the following:
- Zero-emission buildings will become the standard for all new constructions, eliminating the use of fossil fuels. Installing renewable energy infrastructure will be mandatory for these buildings, ensuring sustainability from the ground up.
- Member states shall aim to reduce the average primary energy use in residential buildings by 16% by 2030 and 20-22% by 2035.
- Member states will implement renovation measures in the worst-performing buildings and ensure a minimum 55% reduction in primary energy usage.
- Minimum energy performance standards for non-residential buildings must be improved gradually, with 16% of the worst-performing buildings renovated by 2030 and 26% renovated by 2033.
- The new directives aim to empower tenants and customers by lowering energy bills and safeguarding them through financial incentives to carry out the required renovations and avoid evictions, rent increases, etc.
The new directive will support the building environment through green mortgages and loans provided by banks/financial institutions to promote energy-efficiency lending products. These directives are also expected to boost sustainability in the mobility sector by directing provisions for pre-cabling, rechargeable points for electric vehicles, and sufficient parking spaces for bicycles and cargo bikes. Smart charging and bi-directional charging are some of the critical requirements for both residential and non-residential buildings.
This changing landscape is opening new frontiers for many energy management players in the market. These entities can help building owners achieve the required goals of reducing energy usage and adopting renewable energy sources to their maximum potential following local sustainability goals and governance.
How Tech Mahindra can help
Tech Mahindra is well-positioned to help our European customers implement these revised directives in their facilities by offering and implementing a mix of solutions. Our suite of digital offerings on sustainable energy and utilities management, coupled with consulting capabilities, aims to improve energy efficiency and building performance. Our solutions range from advisory-led to IT+OT-based solutions, leveraging IoT and AI to drive energy efficiency.
- Audit-baseline and strategy
- IoT and AI-based Smart building energy management solutions
- Green Data Center solutions
- Net zero simulation for building design
- Scalable solution to cover the whole portfolio
Additionally, our advisory on assessment and audit of existing facilities, efficiency measures and renewable energy sources requirement, compliance to governance regulations and standards, and assisting in customer energy sustainability through return on investment (ROI) realization and climate goals will help EU building owners to implement and adhere to these revised directives. With so much at stake to conserve and make our planet more livable for future generations, Tech Mahindra is glad to help with the right skills, tools, and personnel.
To know more, reach out to us at SustainabilityOfferings@TechMahindra.com
