Understanding the Complex Landscape of EU Energy Compliance in 2025

EU energy compliance regulations are becoming increasingly complex, with stricter policies focused on energy efficiency, sustainability, decarbonisation, and workforce requirements set by national and EU governing bodies. As part of the European Green Deal and broader sustainability initiatives, businesses operating in the power sector must be able to adapt to compliance measures, ranging from energy efficiency directives to corporate sustainability and workforce mobility laws.

Understanding and adhering to these regulations is a legal and strategic imperative for companies managing large-scale energy projects across multiple countries. This blog explores the key aspects of EU energy compliance in 2025, the evolving legislative landscape, and how power sector businesses can proactively manage compliance while addressing critical workforce challenges.

What are the EU Energy Compliance Regulations?

The EU’s energy policy has changed over recent years, driven by ambitious climate goals and the need for energy security. Key elements of the current EU energy policy include:

• Diversification of energy sources
• Fully integrated internal energy market
• Improved energy efficiency
• Decarbonisation of the economy
• Promotion of research in low-carbon and clean energy technologies

These policy objectives have far-reaching implications for businesses operating in the EU, particularly regarding compliance and workforce requirements.

The EU Energy Efficiency Directive (EED)

One of the most important regulatory frameworks impacting energy businesses is the EU Energy Efficiency Directive (EED). This directive, applicable across Europe, requires large companies to conduct independent energy audits every four years. These audits aim to identify opportunities for energy savings and support the EU's climate goal of reducing greenhouse gas emissions by at least 55% by 2030.

The 2023 revision of the directive (EU/2023/1791) has established ‘energy efficiency first’ as a core principle of the EU energy policy, raising the EU’s energy efficiency ambition to a binding target to cut overall energy consumption by 11.7% by 2030. The principal goal is to ensure that primary energy consumption doesn’t exceed 992.5 million tonnes of oil equivalent (Mtoe). The directive has also been enhanced by the REPowerEU plan to decrease reliance on fossil fuel imports and improve the continent's energy security.

While the directive is EU-wide, each Member State implements regulations differently. Each country is required to develop National Energy and Climate Plans (NECPs) and National Efficiency Action Plans, taking into account factors like energy consumption and intensity. This means companies operating in multiple regions must navigate different qualification criteria, reporting deadlines, and compliance measures, which can be one of the more challenging aspects of EU energy compliance. For example:

• The definition of a 'large enterprise' varies slightly by country but typically includes those that employ more than 250 people in an EU Member State or have an annual turnover exceeding €50 million and/or a balance sheet exceeding €43 million (Anthesis).
• Companies fully covered by ISO 50001 aren’t required to conduct an EED assessment but must notify the local regulator (Bramo Energy).
• Some Member States impose stricter penalties for non-compliance.
• Energy audits may follow different methodologies depending on the country.

The Corporate Sustainability Due Diligence Directive (CSDDD)

Outside of energy audits, companies must also adhere to the Corporate Sustainability Due Diligence Directive (CSDDD), which took effect in July 2024. CSDDD requires large EU companies to manage environmental and human rights risks in their operations and supply chains, both inside and outside Europe. This includes their own operations, subsidiaries, and business partners' operations.

Large companies are required to develop and implement a transition plan for climate change mitigation. This plan must align with achieving climate neutrality by 2050, which aims to limit global warming to 1.5°C. This is in accordance with the Paris Agreement and the intermediate targets set by the European Climate Law.

While this directive may add extra responsibility, early adoption by power and energy companies can offer a competitive advantage. Proactively integrating due diligence measures into corporate strategies helps businesses align with ESG (Environmental, Social, and Governance) reporting obligations, ensuring long-term sustainability and reducing exposure to legal risks. Failure to comply with the directive may result in a penalty of up to 5% of the relevant company's net worldwide turnover from the previous financial year.

Energy Security and Cyber Reliance in Compliance

Recent geopolitical events and the global digital transformation have impacted EU energy policies. Energy security has become a top priority, prompting the EU to diversify energy sources and improve grid resilience. The shift toward smart grids, digital metering, and energy efficiency tracking requires companies to implement advanced technology solutions while ensuring compliance with data privacy and cybersecurity regulations.

The NIS2 Directive, effective as of October 2024, plays a critical role. This EU-wide legislation mandates that medium and large-sized companies in essential energy sectors, including electricity, gas, and hydrogen, implement robust cybersecurity measures to protect against cyber threats. Some key cybersecurity challenges in the energy sector include supply chain risks, legacy tech systems, reliance on interconnected systems, and Industrial Control Systems (ICS) vulnerabilities (NIS2 Directive, Uniqkey).

Integrating AI-driven energy management systems and automated compliance tracking can improve regulatory adherence for companies working on power generation and utilities. However, this also introduces new data protection laws, cross-border energy trade policies, and software-driven infrastructure compliance challenges.

What are the Impacts on Workforce Requirements?

Skills Demand and Labour Market Shifts

As the EU advances its renewable energy and sustainability goals, the demand for skilled workers in sectors like solar, wind, hydrogen, and smart grid technologies is climbing sharply. By 2030, the EU aims to ensure that 42.5% of energy consumption comes from renewables, with an indicative top-up of 2.5% to reach 45% (Renewable Energy Directive).

The transition to green energy has created a spike in interest for engineers, renewable specialists, digital technology experts, and professionals in environmental management, contributing to the ongoing labour shortage in these fields. According to a report by Cedefop, which analysed big data from online job advertisements (OJA):

• Germany has seen a demand for power plant operators, with 65% of ads focused on onshore wind farm technicians and 22% on offshore renewable energy jobs.
• Between 2018-2022, the most sought-after circular economy profiles were R&D managers.
• Engineers were the second most sought-after profession.
• The demand for green computing and energy efficiency experts continues to rise as companies look for ways to reduce energy consumption.

High-Demand Roles in the EU Power Sector

The transition to clean energy increases the need for highly skilled professionals across all verticals of the power industry. Some of the most in-demand roles include:

• Renewable Energy Engineers – experts in wind, solar (photovoltaics), and hydroelectric systems to design and implement energy-efficient projects.
• Research & Development—professionals specialising in energy R&D. Horizon Europe is a 7-year funding programme, running until 2027, that promotes research and innovation to support EU policies. Funding information and application processes are available on the Funding and Tenders portal.
• Electrical Engineers – specialists in power transmission, distribution networks, and grid modernisation.
• Instrumentation and Control Engineers – responsible for developing automated compliance and energy management systems.
• Cybersecurity Experts – IT and tech professionals to ensure compliance with the NIS2 Directive by securing energy infrastructure from threats.
• Power Plant Operators and Technicians – managing operations in both renewable and conventional power plants.
• HVAC and Energy Efficiency Specialists – optimising building energy use to comply with EU energy performance standards.

Power and energy companies should invest in workforce training, upskilling, and reskilling programmes. Implementing a ‘skills-first’ approach and developing sustainable talent acquisition strategies to secure strong talent pipelines that align with EU compliance policies is also essential.

When the local talent market lacks the necessary skill sets and job experience, you might need to recruit talent from overseas to address the labour shortage. In this scenario, companies must comply with regional labour laws impacting contractor mobilisation across various EU countries. This is essential in the power sector, where skilled professionals are frequently deployed in various regions. Key challenges include:

• Varying employment laws – each country has its own rules governing wages, working hours, social security, payroll, and taxation.
• Contractor classification - some countries impose strict guidelines on whether workers can be classified as independent contractors or employees.
• Work permits and visa requirements – the complexity of obtaining the correct documentation for non-EU workers can delay project timelines.

Why Partner with NES Fircroft?

Engaging with NES Fircroft ensures access to a global network of skilled professionals specialising in all areas of power generation, from mechanical and electrical engineering to plant operations and decommissioning. Our power expertise spans various energy sources, including solar, wind, nuclear, biomass, and hydroelectric, helping you tackle skills shortages and build a future-proof workforce as you navigate EU energy policies. With more emphasis on cleaner energy, smart grid, and demand response technologies, top talent becomes increasingly more valuable and difficult to find. We can help you audit your current workforce to identify gaps in your expertise, when these gaps will need addressing and where to prioritise investment in training and recruitment.

We have offices covering Europe, with global teams that offer fast-track mobilisation and compliance solutions for your workforce. If you need contractors to relocate with the required energy skills, we can solve project resource challenges compliantly, quickly delivering the right talent wherever you need it. Contact your local expert today to find out how we can support your power staffing needs.