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1. The Commission shall establish the definition of the smart readiness indicator and a methodology by which it is to be calculated, in order to assess the capabilities of a building or building unit to adapt its operation to the needs of the occupant and of the grid and to improve its energy efficiency and overall performance. The smart readiness indicator shall cover features for enhanced energy savings, benchmarking and flexibility, enhanced functionalities and capabilities resulting from more interconnected and intelligent devices. The methodology shall take into account features such as the possible existence of a digital twin of the building. The methodology shall take into account features such as smart meters, building automation and control systems, self-regulating devices for the regulation of indoor air temperature, built-in home appliances, recharging points for electric vehicles, energy storage and detailed functionalities and the interoperability of those features, as well as benefits for the indoor climate conditions, energy efficiency, performance levels and enabled flexibility.

2. The methodology shall rely on the following key functionalities relating to the building and its technical building systems:

(a) the ability to maintain energy performance and operation of the building through the adaptation of energy consumption for example through use of energy from renewable sources;

(b) the ability to adapt its operation mode in response to the needs of the occupant while paying due attention to the availability of user-friendliness, maintaining healthy indoor climate conditions and the ability to report on energy use;

(c) the flexibility of a building’s overall energy demand, including its ability to enable participation in active and passive as well as implicit and explicit demand response, through its energy storage and release of energy back to the grid, for example through flexibility and load shifting capacities; and (d) the ability to improve its energy efficiency and overall performance through the use of energy-saving technologies.

3. The methodology may further take into account:

(a) the interoperability between systems (smart meters, building automation and control systems, built-in home appliances, self-regulating devices for the regulation of indoor air temperature within the building and indoor air quality sensors and ventilations); and (b) the positive influence of existing communication networks, in particular the existence of high-speed-ready in-building physical infrastructure, such as the voluntary ‘broadband ready’ label, and the existence of an access point for buildings with multiple residential building units, in accordance with Article 8 of Directive 2014/61/EU of the European Parliament and of the Council .

4. The methodology shall not negatively affect existing national energy performance certification schemes and shall build on related initiatives at national level, while taking into account the principle of occupant ownership, data protection, privacy and security, in compliance with relevant Union data protection and privacy law as well as best available techniques for cyber security.

5. The methodology shall set out the most appropriate format of the smart readiness indicator parameter and shall be simple, transparent, and easily understandable for consumers, owners, investors and demand-response market participants.