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

Thank You

www.seai.ie