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Definitions For the purposes of this Directive, the following definitions apply:

(1) ‘energy’ means energy products as defined in Article 2, point (d), of Regulation (EC) No 1099/2008 of the European Parliament and of the Council ;

(2) ‘energy efficiency first’ means energy efficiency first as defined in Article 2, point (18), of Regulation (EU) 2018/1999;

(3) ‘energy system’ means a system primarily designed to supply energy-services to satisfy the demand of end-use sectors for energy in the forms of heat, fuels, and electricity;

(4) ‘system efficiency’ means the selection of energy-efficient solutions where they also enable a cost-effective decarbonisation pathway, additional flexibility and the efficient use of resources;

(5) ‘primary energy consumption’ or ‘PEC’ means gross available energy, excluding international maritime bunkers, final non-energy consumption and ambient energy;

(6) ‘final energy consumption’ or ‘FEC’ means all energy supplied to industry, to transport, including energy consumption in international aviation, to households, to public and private services, to agriculture, to forestry, to fishing and to other end-use sectors, excluding energy consumption in international maritime bunkers, ambient energy and deliveries to the transformation sector and to the energy sector, and losses due to transmission and distribution as defined in Annex A to Regulation (EC) No 1099/2008;

(7) ‘ambient energy’ means ambient energy as defined in Article 2, point (2), of Directive (EU) 2018/2001;

(8) ‘energy efficiency’ means the ratio of output of performance, service, goods or energy to input of energy;

(9) ‘energy savings’ means an amount of saved energy determined by measuring or estimating consumption, or both,, before and after the implementation of an energy efficiency improvement measure, whilst ensuring normalisation for external conditions that affect energy consumption;

(10) ‘energy efficiency improvement’ means an increase in energy efficiency as a result of any technological, behavioural or economic changes;

(11) ‘energy service’ means the physical benefit, utility or good derived from a combination of energy with energy-efficient technology or with action, which may include the operations, maintenance and control necessary to deliver the service, which is delivered on the basis of a contract and in normal circumstances has proven to result in verifiable and measurable or estimable energy efficiency improvement or primary energy savings;

(12) ‘public bodies’ means national, regional or local authorities and entities directly financed and administered by those authorities but not having an industrial or commercial character;

(13) ‘total useful floor area’ means the floor area of a building, or part of a building, where energy is used to condition the indoor climate;

(14) ‘contracting authorities’ means contracting authorities as defined in Article 6(1) of Directive 2014/23/EU, Article 2(1), point (1), of Directive 2014/24/EU and Article 3(1) of Directive 2014/25/EU;

(15) ‘contracting entities’ means contracting entities as defined in Article 7(1) of Directive 2014/23/EU and Article 4(1) of Directive 2014/25/EU;

(16) ‘energy management system’ means a set of interrelated or interacting elements of a strategy which sets an energy efficiency objective and a plan to achieve that objective, including the monitoring of actual energy consumption, actions taken to increase energy efficiency and the measurement of progress;

(17) ‘European standard’ means a standard adopted by the European Committee for Standardization, the European Committee for Electrotechnical Standardization or the European Telecommunications Standards Institute, which is made available for public use;

(18) ‘international standard’ means a standard adopted by the International Organization for Standardization, which is made available for public use;

(19) ‘obligated party’ means an energy distributor, retail energy sales company or transmission system operator, which is bound by the national energy efficiency obligation schemes referred to in Article 9;

(20) ‘entrusted party’ means a legal entity with delegated power from a government or other public body to develop, manage or operate a financing scheme on behalf of that government or other public body;

(21) ‘participating party’ means an enterprise or public body that has committed itself to reaching certain objectives under a voluntary agreement, or that is covered by a national regulatory policy instrument;

(22) ‘implementing public authority’ means a body governed by public law which is responsible for the carrying out or monitoring of energy or carbon taxation, financial schemes and instruments, fiscal incentives, standards and norms, energy labelling schemes, training or education;

(23) ‘policy measure’ means a regulatory, financial, fiscal, voluntary or information provision instrument formally established and implemented in a Member State to create a supportive framework, requirement or incentive for market actors to provide and purchase energy services and to undertake other energy efficiency improvement measures;

(24) ‘individual action’ means an action that leads to verifiable and measurable or estimable energy efficiency improvements and that is undertaken as a result of a policy measure;

(25) ‘energy distributor’ means a natural or legal person, including a distribution system operator, who is responsible for transporting energy with a view to its delivery to final customers or to distribution stations that sell energy to final customers;

(26) ‘distribution system operator’ means distribution system operator as defined in Article 2, point (29), of Directive (EU) 2019/944 as regards electricity or Article 2, point (6), of Directive 2009/73/EC as regards gas;

(27) ‘retail energy sales company’ means a natural or legal person who sells energy to final customers;

(28) ‘final customer’ means a natural or legal person who purchases energy for own end use;

(29) ‘energy service provider’ means a natural or legal person who delivers energy services or energy efficiency improvement measures in a final customer’s facility or premises;

(30) ‘small and medium-sized enterprises’ or ‘SMEs’ means enterprises as defined in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC ;

(31) ‘microenterprise’ means an enterprise as defined in Article 2(3) of the Annex to Recommendation 2003/361/EC;

(32) ‘energy audit’ means a systematic procedure with the purpose of obtaining adequate knowledge of the energy consumption profile of a building or group of buildings, an industrial or commercial operation or installation or a private or public service, identifying and quantifying opportunities for cost-effective energy savings, identifying the potential for cost-effective use or production of renewable energy and reporting the findings;

(33) ‘energy performance contracting’ means a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract, where the works, supply or service in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or another agreed energy performance criterion, such as financial savings;

(34) ‘smart metering system’ means smart metering system as defined in Article 2, point (23), of Directive (EU) 2019/944 or intelligent metering system as referred to in Directive 2009/73/EC;

(35) ‘transmission system operator’ means transmission system operator as defined in Article 2, point (35), of Directive (EU) 2019/944 as regards electricity or Article 2, point (4), of Directive 2009/73/EC as regards gas;

(36) ‘cogeneration’ means the simultaneous generation in one process of thermal energy and electrical or mechanical energy;

(37) ‘economically justifiable demand’ means a demand that does not exceed the needs for heating or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration;

(38) ‘useful heat’ means heat produced in a cogeneration process to satisfy an economically justifiable demand for heating or cooling;

(39) ‘electricity from cogeneration’ means electricity generated in a process linked to the production of useful heat and calculated in accordance with the general principles set out in Annex II;

(40) ‘high-efficiency cogeneration’ means cogeneration meeting the criteria laid down in Annex III;

(41) ‘overall efficiency’ means the annual sum of electricity and mechanical energy production and useful heat output divided by the fuel input used for heat produced in a cogeneration process and gross electricity and mechanical energy production;

(42) ‘power-to-heat ratio’ means the ratio of electricity from cogeneration to useful heat when operating in full cogeneration mode using operational data of the specific unit;

(43) ‘cogeneration unit’ means a unit that is able to operate in cogeneration mode;

(44) ‘small-scale cogeneration unit’ means a cogeneration unit with installed capacity below 1 MWe;

(45) ‘micro-cogeneration unit’ means a cogeneration unit with a maximum capacity below 50 kWe;

(46) ‘efficient district heating and cooling’ means a district heating or cooling system meeting the criteria laid down in Article 26;

(47) ‘efficient heating and cooling’ means a heating and cooling option that, compared to a baseline scenario reflecting a business-as-usual situation, measurably reduces the input of primary energy needed to supply one unit of delivered energy within a relevant system boundary in a cost-effective way, as assessed in the cost-benefit analysis referred to in this Directive, taking into account the energy required for extraction, conversion, transport and distribution;

(48) ‘efficient individual heating and cooling’ means an individual heating and cooling supply option that, compared to efficient district heating and cooling, measurably reduces the input of non-renewable primary energy needed to supply one unit of delivered energy within a relevant system boundary or requires the same input of non-renewable primary energy but at a lower cost, taking into account the energy required for extraction, conversion, transport and distribution;

(49) ‘data centre’ means data centre as defined in Annex A, point 2.6.3.1.16, of Regulation (EC) No 1099/2008;

(50) ‘substantial refurbishment’ means a refurbishment the cost of which exceeds 50 % of the investment cost for a new comparable unit;