System boundaries of nearly zero-energy buildings in the European Union: Rethinking the legal framework for active consumer participation

Energy efficiency is one of the main areas of action of the European Union in its objective of transitioning towards a more competitive, secure and sustainable energy system. The main regulatory tool adopted at the EU level to provide a framework for ensuring that the building sector contributes to achievement of the energy efficiency targets is the Directive on the Energy Performance of Buildings. In the building sector the most optimal way of achieving an energy efficient mode of living is the development of so-called nearly zero-energy buildings. The provisions on nearly zero-energy buildings leave significant discretion to the EU Member States. This article focuses on the differences in determining the system boundaries of the nearly zero-energy buildings in EU Member States and highlights the inconsistencies in EU law on energy performance of buildings and renewable energy legislation. The article argues that the legislative framework on nearly zero-energy buildings does not support the new types of activities consumers can introduce and benefit from to participate actively in energy markets.