The German government’s draft “Act to accelerate the Transposition of the Energy Efficiency Directive” (“Draft”) (last amended 20 June 2026) aims to transpose the remaining requirements of Directive (EU) 2023/1791 (“EED”) into national law following 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 adapts corporate obligations (in particular for energy management, energy audits and implementation plans), creates new – or in some cases revised – rules for data centres and waste heat use, 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 – and further specifies existing – audit, documentation and reporting obligations. 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 companies
Energy efficiency first principle: setting the strategic course
A central goal of the Draft is to transpose the EU’s energy efficiency first principle into the EnEfG. Section 5(1) EnEfG (Draft) requires legal entities to assess any available energy efficiency solutions before finalising planning decisions or major investment decisions exceeding EUR 100 million (or EUR 175 million for transport infrastructure projects). The requirement applies to energy efficiency solutions within the meaning of section 2, no. 11 EnEfG (Draft) that relate to the energy system as defined in Article 2, point (3) Directive (EU) 2023/1791, as well as to solutions in other sectors, where the affected sectors impact energy consumption and energy efficiency. These energy efficiency solutions explicitly include demand-side resources and system flexibility.
In short, companies will be required to assess and document available energy-saving and energy-efficiency options at an early stage when making large-scale planning or major investment decisions.
Under section 5(3) EnEfG (Draft), energy efficiency solutions must be assessed using cost-benefit analysis (CBA) methodologies that adequately capture the broader benefits of energy efficiency measures. Where a CBA is required by law, these methodologies must be applied. In such cases, a summary of the assessment findings must also be made available to the public. Affected businesses will therefore need to assess efficiency and flexibility options at an early stage using compliant methodologies, and ensure that the assessment process is supported by robust and auditable documentation.
Where regulatory approvals are required, the competent authorities must verify that the assessment required under section 5(1) EnEfG (Draft) has been carried out. They must also take into account the cross-sectoral impacts of the relevant planning and investment decisions.
This principle sits alongside the revised target framework of the EnEfG (Draft). The previously applicable national energy consumption targets are now more closely aligned with the EU’s energy efficiency targets and are recast as Germany’s indicative energy-saving contributions communicated to the European Commission. At the same time, the existing, more explicitly quantified obligation to achieve annual total energy savings through strategic measures has been restructured. Under section 4(1) EnEfG (Draft), the Federal Government will still be required to deliver total energy savings through strategic measures. For the first time, however, section 4(1) expressly states that these measures are intended to implement Article 8 EED. The previous rigid annual framework, based on fixed energy savings at federal and state level, will be abolished.
This marks a fundamental departure from the current legal framework: Alongside energy-efficiency targets and strategic measures, the draft introduces a mandatory assessment regime for major planning and investment decisions that must be applied as part of the decision-making process, 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 total annual final energy consumption of more than 23.6 GWh (85 TJ) will be required to set up an energy or environmental management system (“EnMS” and “EMS” respectively). The draft further specifies that an EnMS must be certified in accordance with DIN EN ISO 50001, while an EMS must either be registered under EMAS or certified in accordance with DIN EN ISO 14001. The deadlines for implementation are also aligned with the requirements of the EED: Companies that fall within the scope of the regime by 31 December 2025 must have established the relevant system by 11 October 2027. Newly obligated companies (as of 1 January 2026) must do so within 24 months of acquiring that status. The relevant date for determining a company’s total final energy consumption is 1 January of a given calendar year, and the management system must cover at least 90% of the company’s total final energy consumption.
By raising the threshold from 7.5 GWh – as 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 or EMS. However, the proposed legislation explicitly states that any EnMS or EMS 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) in conjunction with section 1, no. 4 EDL-G (Draft), companies with an average total annual final energy consumption exceeding 2.77 GWh over the preceding three completed calendar years are required to conduct an energy audit. In practice, this requirement mainly applies to companies above the 2.77 GWh threshold that are not already exempt from the audit obligation by virtue of having implemented an EnMS or EMS (see below).
Companies required to establish an EnMS or EMS under section 8(1) EnEfG (Draft) may be exempt from the energy audit requirement pending proof that the relevant system has been implemented.
The first audit must be completed no later than twelve months after a company acquires the relevant status, but in any event not earlier than twelve months after the Act comes into force. After that, audits must be repeated at least every four years, calculated from the date of completion of the previous audit (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. These include requirements regarding the underlying measurement data, a detailed review, analysis and documentation of energy consumption, the identification of potential to use or generate renewable energy cost-effectively, the application of a net present value methodology, and – as a key new requirement – and coverage of at least 90% of the company’s total final energy consumption. In addition, according to section 8a(5) EDL-G (Draft) contractual provisions may not prevent audit findings from being shared with qualified or accredited energy service providers unless the company objects to such disclosure. This is meant to promote the transparency of energy data and the implementation of energy efficiency measures.
Companies are exempt from the audit obligation under section 8(3) EDL-G (Draft) if they have implemented, or commenced the implementation of, an EnMS or an EMS within the meaning of the EMAS Regulation. Unlike in earlier drafts, section 8(3) no. 1 EDL-G (Draft) no longer expressly states that the EnMS must be certified. This is likely because the definition of an EnMS in section 2, no. 14 EDL-G (Draft) already clarifies that an EnMS must be certified in accordance with DIN EN ISO 50001 (December 2018 edition). The deletion of the explicit reference in section 8(3), no. 1 EDL-G (Draft) therefore does not alter the substance of the provision. Businesses are also exempt from the audit obligation under section 8(1) EDL-G (Draft) for the duration of an energy performance contract, provided that the contract satisfies the applicable requirements. The Draft notably revises the scope of application by introducing a consumption-based threshold, retains the requirement to repeat audits every four years, and revises the exemptions available through energy management systems (EnMS) and energy performance contracts.
Implementation plans for efficiency measures – transparency and commitment
Section 9(1) EnEfG (Draft) gives businesses with an average total annual final energy consumption of more than 2.77 GWh and less than 23.6 GWh three years from completion of an energy audit to draw up and publish feasible implementation plans for all energy-saving measures identified as economically viable in an audit conducted pursuant to section 8(1), sentence 1 EDL-G. The implementation plans must be updated annually to reflect progress in implementing the identified measures and formally acknowledged by company management. The annual report must include the implementation plans and the progress made in implementing the identified measures, provided that confidentiality and business and trade secret protections are maintained. These transparency obligations increase the likelihood that companies failing to fully meet their implementation targets will face accusations of greenwashing, making precise documentation and regular updates all the more important. By contrast, the existing requirement to obtain external confirmation of the completeness and accuracy of implementation plans (section 9(1), sentence 5 EnEfG) is to be abolished.
The economic viability of the measures is determined in accordance with DIN EN 17463 (December 2021 edition). Pursuant to the standard, a measure qualifies as economically viable where it generates a positive net present value (NPV) within half of its useful life, with the assessment capped at measures having a useful life of no more than 15 years.
According to section 9(6) EnEfG (Draft), companies that have implemented, or commenced the implementation of, an EnMS or EMS are exempt from the obligation under section 9(1).
The Draft thus narrows the existing scope of application, increasing the annual energy consumption threshold from 2.5 GWh to more than 2.77 GWh while setting the upper threshold at 23.6 GWh. The deadline for preparing implementation plans is to be significantly shortened – from three years to three months following completion of the energy audit – while the external verification requirement has been scrapped entirely. The Draft strengthens internal governance by requiring management to formally acknowledge the implementation plans, thereby holding senior management more accountable for transparency and oversight of energy efficiency measures.
Key changes for data centres
The Draft amends the requirements to be met by data centres. It eases the existing power usage effectiveness (“PUE”) ratios for data centres that begin – or have already begun – operations before 1 July 2026, requiring them to achieve and maintain an annual average PUE of 1.6 or less from 1 July 2027 and 1.4 or less from 1 July 2030. In contrast, the stricter PUE of no more than 1.2 will continue to apply to data centres entering into operation on or after 1 July 2026. This is mitigated, however, by the fact that compliance with these requirements need only be achieved and maintained on an annual-average basis no later than four years after commissioning.
The minimum requirements for energy reuse in new data centres will continue to be phased in based on the start date of operations. Data centres commencing operations on or after 1 July 2026 will be required to reuse at least 10% of their energy, rising to 15% for facilities starting operations on or after 1 July 2027 and to 20% for those beginning operations on or after 1 July 2028. The Draft now explicitly states that internal heat use – including, in particular, the use of waste heat to heat the company’s own offices and premises – may be counted towards the share of reused energy. Data centres will also be permitted to deviate from these minimum reuse targets if they are connected to a heat network.
Section 11(3) EnEfG (Draft) introduces exemptions from the energy reuse requirements that apply in the case of subsequent events beyond the operator’s control, agreements with municipalities or heat network operators on future waste heat use, delayed acceptance of offers to use reused energy by heat network operators, and the absence of a technically and economically feasible district heating connection. The previously discussed fixed 5 km radius for such a connection has been dropped.
The Draft also adjusts the management system obligations for data centres. While section 12(1) EnEfG (Draft) continues to require data centre operators to implement an EnMS or EMS, certification or validation will not be mandatory in most cases. Data centres with IT installed capacity of at least 1 MW and data centres owned by or operated for public bodies will however be obliged to validate or certify such systems.
Section 12(5) EnEfG (Draft) establishes separate thresholds for IT operators. Those with IT installed capacity of 50 kW or more must comply with the EnMS or EMS requirements. Certification or validation is required where the IT installed capacity is at least 1 MW, or at least 500 kW if the facility is operated on behalf of public bodies.
In line with the amendments in section 8(1) EnEfG (Draft), the threshold for exemption from the obligation to implement an EnMS or EMS is also to be raised. Data centres that source at least 50% of their reused energy via a heat network are currently exempt where their average total final energy consumption does not exceed 7.5 GWh. Under the Draft, this threshold would increase to 23.6 GWh, thereby reducing the number of operators subject to the management system requirements.
The requirements for the publication and submission of data centre information are also revised in section 13 EnEfG (Draft). Data centre operators must continue to publish information annually in accordance with Annex 3 and submit this to the Federal Government, while IT operators are required to support the relevant data centre operator in fulfilling this obligation (section 13(2) EnEfG (Draft)). The reported information must be treated as confidential. While the data may be processed and shared for research purposes, any other disclosure or publication without the data subject’s prior consent must be limited to aggregated and anonymised information.
Overall, the Draft presents a mixed picture for the data centre sector. Existing data centres benefit from eased PUE ratios, whereas new facilities remain subject to the ambitious PUE benchmark of 1.2, with the period for achieving compliance extended to four years. The requirements concerning reused energy have become more flexible through the crediting of internal heat use and the provisions on district heating network connections. But while data centres remain a major focus of the Draft, factors such as different cooling technologies continue to be disregarded in the assessment of energy efficiency.
Waste heat use – cost-benefit analyses and waste heat platform
Under the Draft, operators of the following installations will be required to carry out a CBA for the use of technically unavoidable waste heat:
- industrial installations with an average total annual energy input exceeding 8 MW,
- energy supply facilities with an average total 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. take into account in particular technical feasibility, cost-efficiency, impact on energy efficiency and local heat demand, including seasonal variation, as well as options for connection to district heating, district cooling or other waste heat recovery systems. If prepared by a third party – such as in the context of municipal heat planning – the CBA must be carried out in cooperation with the companies responsible for operating the facility.
In contrast to sections 16 and 17 EnEfG, the aim is therefore to switch to a CBA regime for the use of unavoidable waste heat in major new projects or refurbishments. There are also changes relating to the waste heat platform, with the provision of waste heat information no longer being voluntary under the current Draft. Under section 17(1) EnEfG (Draft), companies with an average total final energy consumption exceeding 23.6 GWh and operators of data centres with a total rated energy input exceeding 1 MW will be required to report certain information on unavoidable waste heat in the company to the Federal Energy Efficiency Centre (Bundesstelle für Energieeffizienz, “BfEE”).
While reports must generally be submitted by 31 March each year, no information need be provided if there have been no material changes or the last submission was less than four years ago. The BfEE will make the information publicly available on a waste heat platform while safeguarding business and trade secrets; security-related information may only be published in aggregated form as part of regional waste heat reports.
Public sector and procurement – new efficiency requirements, savings obligations and register
The Draft also provides for Article 7 EED to be implemented in public procurement law. In particular, section 67 Ordinance on the Award of Public Contracts (Vergabeverordnung, “VgV”) and section 58 Sector Ordinance (Sektorenverordnung, “SektVO”) are to be amended, and special provisions for energy-related concessions are to be introduced by way of section 33a Concession Award Ordinance (Konzessionsvergabeverordnung, “KonzVgV”). Under these provisions, contracting authorities will generally be required to specify at least the lower of the two highest energy efficiency classes in which a significant number of products are available in procurement procedures for energy-labelled products, and in the case of tyres, to specify 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. When awarding contracts for services with a significant bearing on energy consumption, contracting authorities must assess whether energy performance contracts are preferable to conventional contracts; the Draft also intentionally limits documentation obligations.
In parallel, the Draft changes the requirements for public bodies under the EnEfG. Public bodies are to be required to achieve annual savings in their final energy consumption of 1.9% per year; the base year is 2021. If that target is not met, the shortfall must be made up in subsequent years; if the target is exceeded, the surplus may be credited. Public bodies may form groups for the purpose of achieving the savings target, either by written agreement or through the energy consumption register.
The EnMS and EMS requirements for public bodies currently governed by section 6(4) EnEfG will not be abolished entirely, but reformulated as target requirements in section 6(5) EnEfG (Draft). Public bodies with an average annual final energy consumption of 3 GWh or more per site over the last three completed calendar years prior to 10 October 2025 will be required to establish an EnMS or EMS by the end of 11 October 2027. Where consumption is between 1 GWh and less than 3 GWh, a simplified EnMS will be required to have been established by that date. Public bodies that attain the relevant status on or after 11 October 2025 will be required to have established an EnMS or EMS no later than 24 months after attaining that status; the reference date is 1 January of the relevant calendar year.
Another central element is the energy consumption register under section 6a EnEfG (Draft). Section 6a(1) EnEfG (Draft) requires the federal government to establish an energy consumption register. Under section 6a(2) EnEfG (Draft), federal public bodies must submit data for the preceding year annually by 30 September, beginning with 2025 and including a one-off submission for the baseline year 2021. Section 6a(3) EnEfG (Draft) requires the federal states to determine the total final energy consumption of public bodies and municipalities within their territories and to likewise report it to the BfEE annually by 30 September of the following year. Landlords of buildings used by public bodies are also required, in accordance with section 6a(5) EnEfG (Draft), to submit energy consumption data to the relevant public body by 31 August each year. To support use of the energy consumption register, section 7(2), no. 4 EnEfG (Draft) requires the BfEE to make electronic guidance notes and templates available within six months of section 6 EnEfG (Draft) entering into force.
The new section 6b EnEfG (Draft) consolidates the provisions on the regulatory powers of the federal government and the federal state governments. Among other things, it provides for the federal government to set higher energy-saving targets for public bodies than those under section 6(1) EnEfG (Draft) and grant exemptions where increased energy consumption is justified by their duties, particularly in the context of disasters, public emergencies, large-scale incidents, civil protection, civil defence and similar situations. Finally, section 6c EnEfG (Draft) introduces requirements for the acquisition and leasing of existing buildings by public contracting authorities within the meaning of section 98 Act against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen), thereby implementing the EED’s building-related provisions for the public sector.
Enforcement, monitoring and penalties
Under section 18 EnEfG (Draft), BAFA is to perform random audits of the establishment and operation of EnMS and EMS pursuant to sections 8(1) and 12(1) EnEfG (Draft), the establishment and publication of implementation plans, and the submission and publication of data centre information. To this end, BAFA may require affected parties to submit evidence within four weeks by using an electronically accessible template.
The regulations on fines are also being revised. Section 19 EnEfG (Draft) will in future cover, in particular, breaches of EnMS/EMS obligations, implementation plans, data centre requirements, data centre information and CBA obligations. Depending on the offence, fines of up to EUR 50,000 or EUR 100,000 may be imposed.
The remit of the BfEE is also amended, particularly with regard to monitoring, reporting obligations, the energy consumption register, the waste heat platform and the energy efficiency register for data centres.
Potential impact and outlook
The proposed amendment could provide tangible relief for businesses by aligning obligations more closely with consumption and, in some instances, reducing them. At the same time, new or more specific audit, documentation and reporting obligations are being introduced, for example for data centres, waste heat data and the public sector. For public bodies, the previous EnMS/EMS obligation is not being abolished completely, however, but instead reformulated as a recommendation and the focus shifted to the annual energy-saving obligation of 1.9% and the energy consumption register.
It remains to be seen how the legislative process will unfold. The content and scope of individual obligations may still change. Affected businesses should therefore not take any irreversible implementation decisions based solely on the Draft, but should instead review their exposure, the availability and quality of their data, and internal responsibilities in preparation.
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 an EnMS/EMS (above 23.6 GWh) or a standard energy audit (above 2.77 GWh, if not exempt) may 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 projects or making major investment decisions exceeding EUR 100 million (or EUR 175 million for transport infrastructure projects) 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 verify that the requisite assessment has been completed.
- 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 NPV 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 an 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 acknowledgement of implementation plans by management following an energy audit. 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 and trade secrets. To minimise greenwashing risks, businesses must ensure documentation is reliable and carefully updated. (This requirement applies to companies with an average total annual final energy consumption of more than 2.77 GWh and less than 23.6 GWh; companies that have implemented or commenced the implementation of an energy management system (EnMS) or environmental management system (EMS) are exempt.)
- 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, waste heat recovery rates (including potential credits for internal heat use) and management system obligations (including certification and validation thresholds). At the same time, businesses need to establish robust data readiness, to be able to manage the publication and submission of required information efficiently, on schedule, and while protecting business and trade secrets.
- 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 the use of technically unavoidable waste heat.
- Review waste heat platform obligations. Companies with an average total final energy consumption exceeding 23.6 GWh, and operators of data centres with a nominal total energy input of more than 1 MW, should determine whether they are subject to waste heat reporting obligations towards the BfEE, the scope of any such obligations, and whether confidentiality or security considerations need to be addressed.
- Review landlord obligations regarding the disclosure of energy consumption data. Landlords of buildings used by public bodies should assess whether they are required under section 6a(5) EnEfG (Draft) to submit annual energy consumption data to the relevant institution by 31 August and implement the necessary reporting processes.
- Consider energy efficiency requirements when bidding for public contracts. Companies bidding for public contracts should anticipate stricter energy efficiency requirements for energy-related products and the inclusion of such requirements as performance conditions in procurement procedures.
- Ensure documentation and evidence management are ready for BAFA audits. Because the Draft consolidates and expands random audits of EnMS and EMS, as well as implementation plans and data centre information, companies should establish an auditable documentation concept. They should also consider the heightened sanctions risk, as violations may result in fines of up to EUR 50,000 or EUR 100,000 under section 19 EnEfG (Draft), depending on the specific offence.
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 significantly raising the threshold for mandatory EnMS/EMS implementation would focus compliance obligations on a smaller group of particularly energy-intensive companies. 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 Draft replaces the current obligations on waste heat avoidance and utilisation with a CBA regime for major new projects or refurbishments; however, it introduces mandatory obligations for certain companies and data centres to disclose information to the waste heat platform. There are fears that economically viable waste-heat potential could remain untapped. Because the Draft is still undergoing the legislative process, it is possible that its contents will change.
Forward
