The German government’s draft “Act to accelerate the Transposition of the Energy Efficiency Directive” (“Draft”) aims to transpose the remaining requirements of Directive (EU) 2023/1791 (“EED”) into national law. This follows the European Commission’s launch of infringement proceedings against Germany in November 2025 for delayed transposition. The Draft streamlines existing energy efficiency obligations and cuts red tape in certain areas over and above the current Energy Efficiency Act (Energieeffizienzgesetz, “EnEfG”). The Draft has been circulated among the ministries for comment, and the Cabinet is expected to make a decision in early 2026.
Notably, the Draft replaces national energy efficiency targets for 2030 and 2045 with the energy efficiency first principle. It also adapts corporate obligations (in particular for energy management, energy audits and implementation plans), creates new rules for data centres and the waste heat recovery, and equips authorities with more robust enforcement tools. While the overall package aims to significantly reduce annual compliance costs for businesses, it also establishes new, stricter obligations, especially with regard to energy consumption thresholds. The Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, “BAFA”) has moreover been granted expanded powers to conduct random audits under section 18 EnEfG (Draft). In parallel, the Draft introduces changes to the Energy Services and Other Energy Efficiency Measures Act (Gesetz über Energiedienstleistungen und andere Energieeffizienzmaßnahmen, “EDL-G”) regarding auditing obligations and exemptions, as well as changes to public procurement law.
Significant changes and obligations for companiesCOMPANIES
Energy efficiency first principle – setting the strategic course
A central goal of the Draft is to embed the EU’s energy efficiency first principle in the EnEfG. Section 4 EnEfG (Draft) accordingly requires legal entities to assess energy efficiency solutions before finalising planning or major investment decisions exceeding EUR 100 million (or EUR 175 million for transport infrastructure projects) and to incorporate these in the decision if the affected sectors impact energy consumption and energy efficiency. For planning decisions involving energy systems, i.e. energy infrastructure measures, these energy efficiency solutions explicitly include demand-side resources and system flexibility.
In short, energy savings and efficiency measures must always be assessed when making large-scale energy-related planning or major investment decisions.
Energy efficiency solutions are to be assessed using a lifecycle-based cost-benefit analysis (“CBA”), a summary of which must be published for significant projects. Many companies will therefore need to assess efficiency and flexibility options early in the process using compliant methodologies, while establishing a clear framework for documentation.
Where permits or other approvals are required, the competent authorities must ensure that the energy efficiency first principle is factored into their final assessment.
This principle will replace the current national consumption targets, such as reducing Germany’s final energy consumption by at least 26.5% by 2030 compared to 2008 (section 4(1), no. 1 EnEfG). Eliminating the current national consumption targets in section 4 EnEfG and replacing them with a mandatory assessment regime accompanying the decision-making process marks a fundamental shift in the legal framework, prioritising governance, data and documentation obligations in project development.
Energy and environmental management systems – fewer obligated parties, clear deadlines and scope
Under section 8(1) EnEfG (Draft), companies with an average annual total final energy consumption of more than 23.6 GWh (85 TJ) are required to set up a certified energy or environmental management system (“EnMS” and “EMS” respectively). The deadlines for doing so will be harmonised with the requirements of the EED: The system must be set up by no later than 11 October 2027 or, for newly obligated companies (effective date: 1 January of the respective calendar year), within 24 months. In accordance with Article 11 EED, the management system must cover at least 90% of the total final energy consumption of the company concerned.
By raising the threshold from the 7.5 GWh currently specified in section 8 EnEfG to 23.6 GWh, the Draft exempts a large number of companies from setting up or maintaining an EnMS. However, the proposed legislation explicity states that any energy or environmental management system must be certified and must include at least 90% of the company’s total final energy consumption.
Energy audits – new target group, intervals, content and exemptions
Under section 8 EDL-G (Draft), companies with an average annual energy consumption of more than 2.77 GWh (10 TJ) over the previous three years must carry out an energy audit, unless they already have a certified EnMS. This targets companies with an average annual energy consumption of 2.77 GWh to 23.6 GWh (the latter represents the threshold at which an EnMS becomes mandatory). The first audit must be carried out by no later than 11 October 2026 or, for newly obligated companies, within twelve months. After that, audits must be carried out at least every four years (section 8(1) and (2) EDL-G (Draft)).
The minimum technical requirements for energy audits set out in section 8a EDL-G (Draft) are in line with Annex VI to the EED (e.g. the audit must be based on up-to-date traceable data, must build on a life-cycle cost analysis, and cover at least 90% of the company’s overall energy consumption). Under section 8a(3) EDL-G (Draft), contractual clauses may not prevent the disclosure of audit results to accredited energy service providers – this is meant to promote the transparency of energy data and the implementation of energy efficiency measures.
Companies are exempt from the audit requirement if they have a certified EnMS or for the term of an energy performance contract concluded with a service provider that complies with the EED requirements. The Draft therefore redefines the target group (moving from the current “all companies that are not SMEs” definition to a consumption-based threshold), clarifies the audit interval (4 years), and broadens exemptions (EnMS and energy performance contracts).
Implementation plans for efficiency measures – transparency and commitment
Under the revised section 9(1) EnEfG, businesses consuming over 2.77 GWh annually are required to develop and publish concrete, feasible implementation plans for all economically viable measures within a strict three-month window following an audit or (re-)certification of an EnMS or (re-)registration of an EMS. These plans must be updated and submitted to the management each year and – provided confidentiality is maintained – included in the annual report. These transparency obligations increase the likelihood that companies failing to fully meet their implementation targets could face accusations of greenwashing, making precise documentation and regular updates all the more important.
The economic viability of the measures is determined in accordance with DIN EN 17463 (as at December 2021), which specifies that a measure is deemed economically viable if it produces a positive net present value after half its useful life, subject to a maximum period of 15 years.
Section 9(6) EnEfG (Draft) stipulates that companies that have established an EMS and carry out additional energy audits are to be exempt from the obligation to publish implementation plans.
Compared to section 9 EnEfG, the target group is therefore slightly smaller (threshold raised from 2.5 GWh to 2.77 GWh), preparation deadlines are drastically tightened (three months instead of three years) and external verification is abolished. At the same time, internal corporate governance is reinforced as the annual submission of implementation plans to the management enhances transparency and allows for the systematic monitoring of efficiency measures.
Key changes for data centres
The Draft includes a moderate relaxation of the power usage effectiveness (“PUE”) ratios for data centres laid down in sections 11 to 13 EnEfG (for old data centres 1.6 or 1.4 instead of 1.5 or 1.3; for new data centres 1.3 instead of 1.2).
The minimum levels of reused energy required for the operation of data centres remain fixed at 10–15%, depending on the year of commissioning, but the Draft does introduce the option of counting in-house heat utilisation towards the reuse target.
The Draft also contains additional exceptions (e.g. the absence of a feasible district heating connection within a 5 km radius) and requires the submission of the relevant data to the EU database (subject to confidentiality being ensured).
While the obligation for data centre operators to implement an EnMS or EMS by 1 July 2025 remains in place, such systems will only have to be certified or validated if the data centre has IT installed capacity of at least 1 MW or is publicly owned.
In line with the amendments in section 8(1) EnEfG (Draft), the threshold for average total final energy consumption triggering the obligation under section 12(4) EnEfG (Draft) requiring data centres that feed at least 50% of their reused energy to a district heating network to establish an EnMS or EMS is likewise to be increased from 7.5 GWh to 23.6 GWh. This adjustment further reduces the number of facilities subject to the obligation.
Overall, these changes should simplify requirements and lessen the burden for data centre operators, particularly by replacing broad reuse obligations with simpler CBA obligations. In contrast, the relaxation of the PUE ratios for data centres is modest at best. While allowing in-house heat utilisation to be counted toward the share of reused energy will likely make it easier for data centres to meet the minimum requirements, or at least give them more flexibility, factors such as different cooling technologies continue to be disregarded in the assessment of energy efficiency.
Waste heat utilisation – CBAs with clear thresholds
Under the Draft, operators of the following installations will be required to carry out a CBA for waste heat utilisation:
- industrial installations with an average annual energy input exceeding 8 MW,
- service facilities with an average annual energy input exceeding 7 MW and
- data centres with a total rated energy input exceeding 1 MW.
The CBA must comply with Annex XI to the EED, i.e. in particular include information on feasibility, cost-effectiveness, system impact, seasonal demand and connection to the district heating network.
In contrast to sections 16 and 17 EnEfG (broad waste heat avoidance and utilisation obligations for all companies, plus mandatory reporting), the aim is therefore to switch to a CBA regime that only applies when planning or substantially refurbishing one of the aforementioned installations. The existing mandatory reporting system is also to be replaced by a voluntary waste heat platform designed to increase the provision of information about available waste heat potential in companies.
Public sector and procurement – new efficiency requirements and elimination of EnMS/EMS obligation
The Draft provides for Article 7 EED to be fully implemented in public procurement law (Ordinance on the Award of Public Contracts (Verordnung über die Vergabe öffentlicher Aufträge), Sector Ordinance (Sektorenverordnung), Ordinance on the Award of Concession Contracts (Konzessionsvergabeverordnung)). In award procedures for products governed by the Energy Consumption Labelling Ordinance (Energieverbrauchskennzeichnungsverordnung), contracting authorities are generally required to specify at least the lower of the two highest energy efficiency classes, and in the case of tyres, the highest energy efficiency class.
When procuring services that utilise energy-related products, these efficiency standards must be included as contract performance conditions. For all other energy-related products, the Draft specifies that the highest energy efficiency level must generally be required.
For services involving significant energy content, the Draft additionally requires contracting authorities to assess whether energy performance contracts are preferable to conventional contracts; it also intentionally limits documentation obligations.
The Draft also provides for the repeal of the obligation for public bodies to implement an EnMS or EMS currently set out in section 6(4) EnEfG. Instead, it focuses on an energy consumption register and mandatory annual savings of 1.9% for public entities.
Enforcement, monitoring and penalties
Under section 18 EnEfG (Draft), BAFA is to perform random audits of the establishment and operation of environmental and energy management systems, the establishment and publication of implementation plans, and the submission and publication of data centre information (section 13(1) EnEfG (Draft)) to ensure proper enforcement. That means random audits are to be expanded past the requirements of section 10 EnEfG to systematically integrate data centre notifications.
The EnEfG (Draft) also seeks to broaden the scope of penalties. Specifically, failure to comply with the obligation to perform a CBA is to be explicitly classified as a fineable offence under section 19.
The Federal Energy Efficiency Centre (Bundesstelle für Energieeffizienz, “BfEE”) will also be assigned further responsibilities. Beyond supporting BAFA, the agency will monitor the implementation of the energy efficiency first principle and manage the waste heat platform and energy consumption register. It will also serve as the liaison for reporting to the European Commission.
Potential impact and outlook
The proposed amendment aims to provide tangible relief for businesses by simplifying reporting and narrowing the focus of compliance obligations. Under the current Draft, the public sector would be exempt from the obligation to establish an EnMS/EMS; at the same time, new auditing and reporting obligations would be introduced. However, the scope and substance of individual obligations may change significantly during the legislative process. Companies should therefore wait for the final text of the Act before committing to implementation strategies.
Strategic priorities for impacted businesses
Businesses should closely monitor the legislative process, taking strategic, risk-adjusted steps to ensure operational readiness once the Act takes effect, while avoiding any irreversible commitments:
- Determine scope of compliance based on energy usage – i.e. whether a certified EnMS/EMS (above 23.6 GWh) or a standard energy audit (2.77 GWh to 23.6 GWh) will be required – and when implementation deadlines will likely take effect. Companies should also set up a proactive monitoring system to quickly identify consumption spikes (e.g. from scaling operations, new facilities or changes in production).
- Integrate energy efficiency first principle into project and investment governance frameworks. Businesses planning energy-related investments should refine their decision-making processes to ensure that energy efficiency and flexibility options are methodically evaluated and supported by rigorous, transparent documentation. To ensure smooth permitting, companies should also anticipate early on the documents approval authorities may require to review compliance with the energy efficiency first principle.
- Establish EnMS/EMS readiness without committing to irreversible implementations. Companies likely to exceed the 23.6 GWh threshold should determine whether an EnMS or EMS is strategically preferable, define which sites and processes fall within its scope, and perform a gap analysis to ensure they can verifiably cover at least 90% of their total final energy consumption.
- Ensure operational readiness for audits under the updated EDL-G and evaluate potential exemption options. Companies with an annual energy consumption of over 2.77 GWh need to upgrade their auditing capabilities to support data-driven life-cycle assessments. This includes identifying gaps in their metering landscapes, focusing on sub-metering granularity and the clear attribution of energy carriers to sites and processes. Simultaneously, businesses should assess whether an exemption can be secured by maintaining a certified EnMS/EMS or, where commercially viable, by entering into a qualified energy performance contract.
- Establish implementation plan and management reporting process. The Draft introduces tight deadlines for the preparation, publication, update and submission of implementation plans to management following an audit or (re)certification. To ensure these requirements are met efficiently, companies should establish a seamless process that creates automated action plans from audit findings, allocates responsibilities and sets timelines, assesses economic viability under DIN EN 17463, and facilitates structured decision-making on the publication of information and the protection of business secrets. To minimise greenwashing risks, businesses must ensure documentation is reliable and carefully updated.
- Data centres: Clarify obligation catalogue and data readiness. Data centre operators should conduct site-specific assessments to determine which upcoming requirements will apply to them, including with regard to PUE values, waste heat recovery rates (including potential credits for internal heat use) and management system obligations (including certification and validation thresholds, such as those triggered at 1 MW of IT load). At the same time, businesses need to establish robust data readiness, to be able to manage the transfer of required information to the EU database efficiently, on schedule, and in compliance with confidentiality requirements.
- Incorporate CBA requirements early into the planning stages of new projects or refurbishments. Companies should review their pipelines to identify any new projects or refurbishments that may trigger a mandatory CBA for waste heat use (e.g. industrial installations, service facilities and data centres).
- Ensure documentation and evidence management are ready for BAFA audits. Because the Draft consolidates and expands random audits of energy management systems and environmental management systems, companies should establish an auditable documentation concept.
Outlook and conclusion
The draft Act to Accelerate the Transposition of the Energy Efficiency Directive combines obligations from the Energy Efficiency Directive with tangible reductions in compliance costs to be achieved by better aligning requirements to final energy consumption, preventing regulatory overlap and clarifying procurement rules. For companies in scope, this is the moment to recalibrate governance, data management and project pipelines to match the new thresholds, deadlines and evidence requirements. By systematically assessing, prioritising, and implementing the necessary changes at an early stage, companies may be able to realise efficiencies faster and minimise regulatory risk.
Politically, however, the Draft remains controversial, with concerns that the elimination of national consumption targets and significant increase in the threshold for implementing a mandatory EnMS or EMS would result in the future act applying only to a few very energy-intensive businesses. Critics argue that this could increase the risk of missing European energy efficiency targets, potentially leading to Germany having to pay significant fines to the EU. In addition, the obligation to reuse waste heat would no longer apply; it would merely be replaced by a requirement to perform a mandatory CBA. It is feared that could leave economically viable waste-heat potential untapped – a concern shared by some industry stakeholders. Because interministerial consultations on the Draft are still underway, it is possible that its contents will change.
Forward
