Global Energy Optimization Trends and Policies in Belgium

Overview

In 2022, the final energy consumption (with climatic corrections) in Belgium, as calculated by Enerdata, was 30 Mtoe, 11% lower than its 2005 level (34 Mtoe). Industry, historically the largest consumption sector in Belgium, and the residential sector both recorded a decrease by 1.3 percentage points in their share of total final energy consumption since 2005, reaching respectively 29% and 25.5% in 2022. Over the same period, the transport sector increased its share by 2.9 percentage points to 29% (the same share as industry) and the services sector maintained its share at 14%.

Figure 1: Final energy consumption by sector 

Energy efficiency for final consumers improved by an average of 1.5% per year from 2005 to 2022 or 23% over the period, as measured by the ODYSSEE technical energy efficiency index, called ODEX. This improvement was mainly driven by the industrial sector (2.3% per year or 33% over the period) and the residential sector (1.8% per year or 27% over the period). In transport, energy efficiency improvements have been steady, with an average of 0.4% per year since 2005.

Figure 2: Technical Energy Efficiency Index

Belgium is a federal state, in which energy efficiency is a competence of the three Regions (Flanders, Wallonia and Brussels-Capital), with supporting measures from the federal government. Within the framework of Art. 4 of the Energy Efficiency Directive (EED) recast (directive (EU) 2023/1791), Belgium has set an indicative energy efficiency target: a primary energy consumption of 36.5 Mtoe in 2030, corresponding to a final energy consumption of 29.9 Mtoe.

Buildings

In 2022, the average consumption per dwelling for space heating (with climatic corrections) was 17 MWh (1.5 toe). This is a decrease of 20% compared to 2010, where the average consumption per dwelling was 22 MWh (1.9 toe), an improvement of 1.9% or 0.4 MWh per year on average. The 2020 increase is at least partially attributable to the lockdowns linked to the COVID-19 pandemic.

Figure 3: Energy consumption by end-use of households

Globally, the final energy consumption of residential buildings was lower in 2022 than in 2005 (7.3 Mtoe vs. 9.1 Mtoe). Two drivers contributed to increase energy consumption over the period – more appliances per dwelling (1.5 Mtoe) and more dwellings (1.3 Mtoe). However, the effect of these drivers was more than offset by energy savings (- 2.7 Mtoe) and other drivers (-1.2 Mtoe), such as changes in habits. Space heating consumption was also lower in 2022 than in 2005 (5.2 Mtoe vs. 6.9 Mtoe). While the penetration of central heating (1.5 Mtoe), activity (1.0 Mtoe) and climate (0.7 Mtoe) pushed it upward, other drivers (- 2.7 Mtoe), savings (- 2.1 Mtoe) and smaller homes (- 0.2 Mtoe) pushed it downward. The energy prices crisis in 2022 certainly played a role in this consumption reduction.

Figure 4: Main drivers of the space heating consumption variation of households

While the energy consumption per employee in the services sector dropped by 30% since 2005 (likely driven by a decrease in consumption for space heating), electricity consumption remained quite stable until 2009, before declining slowly until 2019 and more sharply thereafter. This could be explained by the diffusion of IT and electrical appliances in offices, which eventually reached a saturation point and was then offset by increased efficiency. The lockdowns linked to the COVID-19 pandemic and the subsequent generalization of teleworking probably contributed to reducing both consumptions from 2020 on.

Figure 5: Energy and electricity consumption per employee in services

Policies and measures implemented in the building sector

EU-related: Energy Performance of Buildings (Directive 2002/91/EC)  – Flanders – Renovation Obligation

The Energy Performance of Buildings Directive (2002/91/EC (EPBD) – Energy Performance of Buildings Directive) is an important part of the European Union’s energy policy. In Belgium, the implementation of the directive is carried out at the regional level (Flanders, Wallonia and Brussels) due to the country’s federal structure.

The Flanders Energy Performance and Indoor Climate Directive (EPB) builds on the European Union Directive 2002/91/EC on energy performance in buildings. It is part of the overall EU strategy to improve energy efficiency, reduce CO₂ emissions, and promote sustainable development.

The main objectives of the regulation:

• Optimizing energy use: Improving energy efficiency in buildings, reducing energy losses and increasing the use of renewable energy sources.
• Improving the quality of the living environment: Ensuring comfortable living and working spaces roofs, better indoor climate protection.
• Reduced environmental impact: Supports the EU carbon neutrality target by significantly reducing emissions from residential and commercial buildings.

Scope of application:

The regulation applies to:

1. New buildings.
2. Major renovations (over 25% of the building area).
3. Both residential and non-residential buildings.

Key requirements of the regulation:

1. Energy Performance (E-peil):

• A measure of the overall energy efficiency of a building.
• New buildings must meet a set maximum E-peil level (e.g. E30 for new homes from 2024 onwards).Insulation Requirements:

1. Insulation Requirements

• Major structures such as roofs, walls, floors and windows must meet a minimum level of insulation to reduce heat loss.
• U-values ​​are applied to ensure the required level of insulation.

1. EPB Certificate:

• Buildings must be granted an energy performance certificate before they can be put into use.
• This certificate assesses the building’s compliance with the EPB standards.

1. Renewable energy use:

• New constructions are required to incorporate renewable energy (such as solar panels, heat pumps, or central heating systems).

Implications for sustainable development:

• The EPB regulation not only helps reduce energy costs for residents, but also encourages the use of environmentally friendly materials and energy-saving technologies.
• This is an important step in Flanders’ efforts to build sustainable towns, contributing to the EU’s overall goal of cutting greenhouse gas emissions by 55% by 2030 and becoming carbon neutral by 2050.

Practical example of applying the Energy Performance of Buildings Regulation (EPB) in Flanders

Sustainable residential area in Antwerp – “Nieuw Zuid”

The Nieuw Zuid (New South) area in Antwerp is a prominent example of the practical application of EPB regulations towards sustainable development.

• Objectives:
  To create a modern residential area with buildings that meet high energy efficiency standards and make optimal use of renewable energy.
• Key features:
  • All buildings comply with or exceed E-peil requirements (below E30).
  • Installation of renewable energy systems, including solar panels and district heating using clean energy sources.
  • Using high-quality insulation materials to minimize heat loss through walls, roofs and floors.
  • Equipping with smart ventilation systems to maintain indoor air quality while saving energy.
• Results:
  The area not only significantly reduces CO₂ emissions but also provides comfortable, environmentally friendly living spaces that attract many young residents and innovative businesses.

To ensure compliance with the EPB regulation, the Flemish regional government applies a system of administrative incentives and penalties, based on the level of compliance with the criteria for energy efficiency and thermal insulation.

Incentives:

1. Subsidies:

• Residential renovation support:
  Regional authorities provide subsidies for the renovation of old buildings to improve insulation and energy efficiency.
  • Support from 500 – 10,000 EUR depending on the size and type of building.
  • Conditions: Meet the E-peil criteria lower than the minimum required (e.g. E20 instead of E30).
• Support for renewable energy installations:
  Owners who install solar panels, heat pumps or connect to a communal heating system will receive direct support, typically:
  • 250 EUR/kWp for solar panels.
  • 1,500 – 5,000 EUR for heat pumps.

1. Property tax relief:

• Housing that meets the E-peil standard of E20 or lower is exempt from property tax for the first 5 years.
• Create a strong incentive to build new housing with superior energy efficiency.

1. “Green Building” certification:

• Buildings that meet high standards (low E-peil or use at least 30% renewable energy) will be granted “Green Building” certification, helping to increase real estate value.

Sanctions:

1. Administrative Fines:

• Failure to meet insulation or energy performance criteria will result in a fine of:
  • 50 – 250 EUR per m² not met the requirement.
  • For example, if a building has an unqualified insulation area of ​​100 m², the maximum fine is 25,000 EUR.

1. Refusal to issue EPB certification:

• Failure to issue EPB certification will result in the building being denied EPB certification, which may prevent:
  • Purchase or lease activities.
  • Receive financial support from the government.

1. Suspension of building permits:

• Construction projects may be suspended if full documentation proving EPB compliance is not submitted.

1. Additional fines for large buildings:

• Large commercial or industrial buildings that fail to meet standards will be subject to an “Environmental Compensation Fee”, which can be up to 50,000 EUR.

Actual statistics on the impact of EPB (in Flanders):

1. Improved energy efficiency:

• On average, new buildings built since 2020 have an E-peil = E20, reducing energy consumption by more than 50% compared to pre-2010 levels (E40-50).

1. Energy savings:

• More than 80,000 buildings in Flanders have been renovated to meet insulation standards between 2015 and 2023.
• On average, each household saves around EUR 800/year thanks to reduced heating costs.

1. Administrative fines:

• From 2015 to 2023, there were around 2,500 cases of EPB violations, with a total fine of EUR 12 million.

1. Use of renewable energy:

• By 2023, more than 60% of new buildings in Flanders will use at least one renewable energy system (solar panels, heat pumps, etc.).