economic instruments to deliver low energy buildings ...€¦ · cost to government of saving 1 gwh...
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Economic Instruments to Deliver Low
Energy Buildings
Josephine Maguire
What we’ll talk about....
• Introduction to SEAI
• Energy and the Economy in Ireland
• Better Energy: The National Upgrade Programme
• Incentive Schemes
• Plans for the Future
SEAI Vision and Mission
• Ireland a recognised global leader in sustainable energy,
a society that is fully engaged in the sustainable energy
agenda and an economy that is fully exploiting the
global opportunities in clean, low-carbon solutions
• SEAI mission is to play a leading role in the
transformation of Ireland to a society based on
sustainable energy structures, technologies and
practices
Key SEAI Priorities
• Energy efficiency first: implementing strong energy
efficiency actions that radically reduce energy intensity
and usage
• Low carbon energy sources: accelerating the
development and adoption of technologies to exploit
renewable energy sources
• Innovation and integration: supporting evidence-based
responses that engage all actors, supporting innovation
and enterprise for our low-carbon future
The Case for Energy Efficiency
89%
Residential 27%
Commercial / Public Sector
16%
Agriculture 2%
Industry 21%
Transport 34%
Emissions 7 MtCO2
Emissions 12 MtCO2
Ireland total energy 2010: 170,000
GWh
Ireland – Energy Picture
National Energy Efficiency Action Plan
Gap to target
addressed by Retrofit
Total identified savings
(28 actions)
23,730
20% National Target 31,925
Gap to target 8,195 GWh
2,000
4,000
6,000
8,000
12,000
18,000
0
14,000
16,000
10,000
Gap
Residential
Business
Public
Energy savings potential by sector
Transport
GW
h
Better Energy: The National Upgrade Programme
The Better Energy Programme - Potential Benefits
• 8000 GWh
• 2.3 Mt CO2
• Net societal benefit of
around €6 billion
• 5000 jobs supported
• Reduced exposure to
future price increases
• Increased
Competitiveness
1 million building upgrades
across the residential,
commercial and public
sectors by 2020
Programme aims
• Unlock significant energy efficiency potential by enabling
owners and occupiers of existing buildings to be more
energy efficient
• Generate employment
• Improve energy security and environmental performance
• Address accredited supply chain, skills, business models
• Engage a wider range of market players under one brand
• Explore new ways of financing energy efficiency; promote
whole life appraisal
Better Energy: The Story so far
Current efficiency programmes
Domestic
• Home Energy Saving Scheme
• Warmer Homes Scheme
Non-Domestic
• Large Industry Energy Network
• SMEs/E-Map
• Public Sector
Supports
• Energy Performance in Buildings – Building Energy Rating
• Power of One
• Education Programme
Grants to reduce energy usage
Home Energy Saving Scheme – Measures
• Roof insulation
• Wall insulation
– Cavity
– Internal wall dry-lining
– External wall insulation
• Heating controls and oil/gas boiler upgrade or heating controls only
• Solar Hot Water Systems
• Obligatory: Building Energy Rating (BER) after measures carried out
Better Energy Homes
• Over 150,000 homes completed upgrade works
• Expending €400m in total (Grant €120m)
• Homes retrofitted in 2010/2011 Saving 600GWh p/a
• Supporting 5,000 jobs
• Benefiting Government through PAYE, VAT &
Corporation Tax
• In addition around 60,000 fuel poor homes upgraded in
last 10 years
Better Energy Workplaces
• 218 Grant aided projects carried out between 2009-2011
• Investing €79m in energy efficiency and competitiveness
• Through Grant Aid of €24m
• Saving 550 GWh p/a
• Supporting over 1,000 jobs
Workplaces Statistics
SEEEP 2009 EEEF 2010 BEW 2011
Grant support €M 4.9 8.3 10.9
Number of Projects Approved 91 66 103
Number of Projects Completed 72 61 85
Energy Savings GWh 52 228 272
Tonnes CO2 saved 10,753 47,140 56,000
€M Saved 2.6 8.7 11
Payback Years (average) 4.6 2.5 4.6
Government Contribution 41% 37% 24%
Cost to Government of Saving 1 GWh €94k €36.5k €40k
Industry
LIEN
• membership 150 companies
• Total primary energy requirements 25,000 GWh (€1bill.)
• 14% of National Requirement, > City of Dublin
• 5.7M Tonnes of CO2
• Average savings in 2009 = 2.6% (€20/25M)
• Savings to Date - €300/€350M
The Future
The Environment
The task
• 20% energy efficiency target
• One million buildings by 2020
• 8,000GWh to achieve
The challenge
• The economy
• Negative equity
• Disappearing exchequer grants
Economic Instruments to
Deliver Low Energy Buildings
The Challenge
Poliy POLICY MARKET
Transformation
Developments in the Market
• Energy Suppliers
• Partners/Accumulators
• New Emergents
• Horizontal Diversification
• Communities
Moving along the Value Chain
•Grants
•Self financed
•Customer Driven
•Fragmented Delivery
•New Financing Options
•Market Driven
•Integrated Delivery
NOW FUTURE
Delivery
Energy Suppliers
Energy Service
Cos.
Contractors
ESCOs
/EPCs
Brokers
Financiers
/PAYS
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