DEESME 2050 has just released a core material from the project: it’s policy report.
This report examines the cost-efficiency and competitiveness implications of Article 11 of the Energy Efficiency Directive for European Small and Medium-size companies (SMEs).
It analyses whether full compliance with audit and energy management obligations is economically justified for smaller firms or if alternative, simplified approaches yield comparable value. Modelling across all EU Member States shows that most SMEs consume between 0.1 and 2.0 terajoules (TJ) annually, while only 5–10% exceed the 10 TJ threshold that triggers a mandatory energy audit. For the majority, imposing full audit or EMS obligations would not be cost-efficient. Instead, proportionate options—such as simplified audit schemes (walk-through-audits in DEESME 2050), staged energy management systems or digital self-assessments can deliver similar benefits with lower administrative effort. However, for the energy intensive there is a justification of the approach with full energy audit.
The report’s central finding is that energy efficiency directly strengthens SME competitiveness. Audits and energy management systems help firms cut energy costs, optimise operations, and mitigate exposure to volatile prices, while alternative simplified approaches ensure inclusion of smaller enterprises without overburdening them. When the Multiple Benefits (MB) framework is applied, quantifying co-benefits such as improved productivity, product quality, maintenance savings, and workplace comfort, the overall economic return on energy efficiency investments is much higher, and payback periods drop to almost half in many cases.
