The recast of the Energy Efficiency Directive proposed by the European Commission as part of the Fit-for55 package (July 2021) states, in its new Article 3, that the Energy Efficiency First principle should apply to planning, policy and major investment decisions related to energy systems as well as non-energy sectors, where those sectors have an impact on energy consumption and energy efficiency.
Planning practices, policies and investment frameworks shall consider energy systems as a whole, with resources available on both sides (supply and demand), and interactions between demand and supply. This means that policies and regulatory frameworks dealing with energy supply and infrastructures should consider demand-side options as alternatives to increasing supply, thereby valuing the contributions of energy savings and flexibility to energy systems and, where possible, other objectives (e.g. the reduction of greenhouse gas (GHG) emissions, improved health). On the other side, policies and regulatory frameworks dealing with energy end-use efficiency should consider their impact beyond the demand side, as they can also have an impact on supply (e.g. on the investments needed to deliver a specific level of energy services).

Implementing the EE1st principle has proved to be a difficult task for Member States, at least partly
because EE1st is still a relatively new concept. This report provides a set of recommendations for Member States (MS) to support the implementation of EE1st in their policies. The analysis builds on previous work done in the ENEFIRST project, where policy approaches for each main policy area (buildings, the power sector, district heating) were analysed in detail, providing the basis for guidelines for integrated approaches. It takes the lessons learnt from the analysis of three countries (Germany, Hungary and Spain) and translates them into recommendations that are applicable to all Member States.

Most of the current policies are not designed around the EE1st principle, but they can be adapted to
reflect EE1st, and new policies can be designed to integrate it. EE1st, however, cannot be simply mandated: its implementation requires dedicated effort from the Members States and stakeholders involved in policy design, capacity building and cross-cutting cooperation. To be effective, EE1st must be constantly considered when implementing policies at national and local level. Member States, national and local authorities need to adjust their practices and increase capacity building to secure its integration and avoid silo-thinking. Only by investing time and resources to continuously integrate EE1st in day-to-day practices, would it be possible to achieve the benefits of adopting a systemic approach to policy making that embraces EE1st and goes beyond the classic portfolio of energy efficiency policy and supply side measures.