Heads Up! NZEB and TGD

Part L now apply but what are these new regulations and what do they mean?

It’s all about complying with and implementing an EU Directive (2010/31/EU) dealing with Energy Performance of Buildings Directive (EPBD) NZEB and Major Renovations and Article 9 requires Member states to ensure that all new buildings are “Nearly Zero Energy Buildings” by 31st Dec 2020.

Directive 2010/31/EU of the European Parliament and of the Council on the Energy Performance of Buildings (Recast) sets requirements at an EU level for Member States to improve the energy performance of buildings and to make an important contribution to the reduction of greenhouse gas emissions.

As part of the implementation of this directive, new Building Regulations have now come into force which will undoubtedly add to the cost of reinstatement of an insured premises and contribute to inflationary trends in the sector.

To better understand the significance of the changes and what it all means, the following definitions should help to clarify and de-mystify the language and ‘European acronyms’

EPBD and RED Definitions:

Nearly Zero Energy Buildings & Major Renovation:

‘Nearly zero-energy building’ means a building that has a very high energy performance and the nearly zero or very low amount of energy required to run it should be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby.

RTE PV Array Renewable Energy:

Energy from renewable non-fossil energy sources, namely solar energy (thermal and photovoltaic), wind, hydropower, biomass, geothermal, ambient energy, wave, tidal, landfill gas, sewage treatment plant gas and biogases.

‘Major renovation’ means the renovation of a building where more than 25 % of the surface of the building envelope undergoes renovation.


This will have significant cost implications for Insurers where a fire, storm or flood event, causes damage in excess of 25% to the surface of the building envelope. It therefore follows that repairs / reinstatement following an insured event will fall under the aforementioned definition of ‘renovation’ and this will feed into inflation creep in insurance property claims.