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Structure of the EU electricity system EU rules on electricity govern two core spheres: the physical set-up for generation, movement and consumption of power (often termed the electricity network or grid), and the organisation of electricity markets (i.e. the flow of money). Electricity moves through the EU grid in broad stages: Generation—the creation of electricity using, for instance, fossil fuels, solar, wind, nuclear or geothermal sources Transport—the conveyance of electricity across the network, typically divided into: Transmission—long-distance transfer on the extra high-voltage and high-voltage interconnected system, with delivery to final customers or to distributors in view Distribution—movement from transmission networks and distribution to consumers. Electricity from smaller renewable installations, such as solar and wind, is generally injected into the distribution networks Supply—the sale (including resale) of electricity to wholesale customers (who purchase for onward sale) and to final customers (who purchase for their own use) As a straightforward analogy,...
Background and key objectives Directive (EU) 2023/1791 of the European Parliament and the Council, adopted on 13 September 2023, concerning energy efficiency (the recast EED), appeared in the Official Journal on 20 September 2023. Member States are obliged to transpose most measures of the recast EED into domestic law by 11 October 2025, enabling the changes to apply from 12 October 2025, subject to certain article-specific exceptions set out in Article 37. The earlier Energy Efficiency Directive (Directive 2012/27/EU) is repealed with effect from 12 October 2025. For further detail on the position under the original EED, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The recast EED overhauls the EU’s energy efficiency framework to align it with the ambition of reaching net zero by 2050. It raises the EU-wide 2030 energy efficiency objective, aiming to lower the need for additional power generation capacity, reduce costs linked to storage, transmission and distribution, and bring down energy prices for consumers. Enhanced efficiency will operate alongside wider uptake of electricity from...