Energy Agreement 2012-2020

Comprehensive agreement passed by a majority in the parliament that aims at reducing emissions via energy efficiency and increasing the share of renewable energies towards a green socio-economic transition. The overall objective is to shift energy supply to have a share of 35% renewable energy in final energy consumption by 2020 and 100% renewable energy by 2050 expected to reduce GHG emissions by approximately 34% by 2020 over 1990. It proposes a 7.6% reduction of gross energy consumption in 2020 in comparison to 2010.

It contains a number of key elements that contribute to the overall target. Energy companies must realise specific energy savings beyond current standards. It also includes development of a comprehensive strategy to improve energy efficiency standards in buildings, expansion of wind power from 25% (2012) to 50% (2020), demonstration and use of new renewable energy technologies (wave, solar, geothermal), amendment to the Heating Supply Act to increase attractiveness of shifting from coal to biomass, phasing-out of oil-fired boilers via encouraging shifts to natural gas boilers and electrical heat pumps using ambient heat in existing buildings and subsidies to promote investment in energy efficient use of renewable energy in industrial production processes, calls to draw up strategy on establishing smart grids, improving opportunities for using biogas (provision, financial support), facilitating a shift in transport sector from fossil fuels to electricity and biofuels via subsidies for car recharging stations as well as the implementation of the 10% target for renewable energies in transport by 2020 and the implementation of efficiency improvements in the energy sector.