Plugging energy efficiency first in stakeholders’ practices: lessons learnt from four pilot cases

Peer-reviewed paper 2-086-26

The 2023 Energy Efficiency Directive (EED) recast has clarified that the Energy Efficiency First (EE1^st) principle applies to all energy-related planning, policies and major investments. Still, many stakeholders see it challenging to implement. This paper summarises the lessons learnt from pilot cases completed in 2025 in four countries.

Article 25 EED requires to implement EE1^st in heating and cooling plans. The Greek pilot operationalised this by applying financial and socioeconomic Cost-Benefit Analyses (CBAs). Results confirm that heat pumps and combined efficiency-renewable measures outperform fossil-based systems when societal benefits are considered.

EE1^st is also relevant for SECAPs. The Italian pilot performed a multi-dimensional analysis showing that energy-related measures dominate while social equity and energy poverty considerations remain marginal. This highlights the need for stronger governance, cooperation between different levels of governance and stakeholders, simplified tools, and better incorporation of EE1^st in municipal planning practices.

Article 27 EED requires implementing EE1^st in the assessment of grid investment projects. The Croatian pilot compared traditional methodology for investments’ assessment with the EE1^st requirements to systematically evaluate demand-side options and socioeconomic benefits.

The Polish pilot looked at the consumers’ role in the electricity system and showed that successful implementation of EE1^st in demand-side response requires addressing behavioural, economic, and systemic barriers. Low awareness, perceived inconvenience, and distrust impede household participation. Solutions co-developed with policymakers, DSOs, and consumers highlight the role of aggregators and transparent incentive structures.

Together, the pilots illustrate that applying EE1^st requires a pragmatic mix of methodological innovation, stakeholder engagement, and institutional alignment.