EU Council Approves Key Energy Market Reforms Impacting HVAC Sector

Brussels, 21 May 2024 – The Council of the European Union has approved two crucial legislative packages to reform the EU's electricity and gas markets, pivotal steps in the "Fit for 55" initiative aimed at reducing carbon emissions and enhancing energy security.

The Electricity Market Designpackage, composed of a regulation and a directive, introduces rules to stabilize energy prices, promote renewable energy, and protect consumers. Key features include long-term power purchase agreements (PPAs) and two-way contracts for difference (CfDs) to shield consumers from price volatility and support renewable investments. The reforms also empower the Council to declare energy crises and enforce measures to protect vulnerable consumers. These changes are expected to significantly impact buildings and technical building systems, particularly in the HVAC sector, by promoting more efficient and sustainable energy use.

The Gas and Hydrogen Market package, also consisting of a regulation and a directive, establishes a framework for integrating renewable and low-carbon gases, especially hydrogen, into the energy system. It sets out rules for gas and hydrogen transport, storage, and supply, and promotes the phase-out of fossil fuels by 2049. The package includes measures to protect consumers from energy poverty and support the development of hydrogen infrastructure. This will influence the HVAC sector by encouraging the adoption of cleaner energy sources and improving overall energy efficiency in buildings.

Next Steps

The newly adopted regulation and directive for both packages will now be signed and published in the Official Journal of the European Union. The regulations will become directly applicable six months after publication. Member states will have two years to adapt their national legislation to the provisions of the directives. These timelines are crucial for stakeholders in the HVAC sector, as they will need to align their systems and practices with the new rules.

Impact on HVAC Sector

The pieces of legislation at hand will have a substantial impact on buildings and technical building systems in the HVAC sector. By promoting renewable energy sources and enhancing market stability, these reforms will drive advancements in heating, ventilation, and air conditioning technologies, ensuring they are more energy-efficient and sustainable. This aligns with REHVA's mission to improve energy efficiency and indoor climate quality in buildings.

Continued Updates from REHVA

As these legislative changes unfold, the secretariat of REHVA will continue to keep the REHVA family informed regarding upcoming legislation directly or potentially impacting the sector. We remain committed to providing timely updates and guidance to help our members navigate and adapt to the evolving regulatory landscape.

Stay tuned for further information and detailed analyses of how these reforms will shape the future of the HVAC industry.

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