Ibec Energy Efficiency
Working Group – Minutes
9 May 2014, 11.00-13.00
84-86 Lr Baggot Street, Dublin
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Mark Woods
Ciara Brody
Dick Clerkin
Tom de Lasa
Robbie Aherne
John Walsh
Kevin Geoghegan
John Ryan
Mike Ronan
Donal O’Sullivan
Des Connolly
Justin Maguire
Deaglan O’Donaill
John O'Donoghue
Audrey O'Shea
Cormac Mannion
Domhnall Carroll
Dan Collins
Neil Walker
Catherine Joyce-O’Caollai
Stjohn O’Connor
The Maxol Group
Fingleton White & Co.
Premier Periclase Ltd
Xerox (Europe) Ltd
EirGrid
Tesco
Intel Ireland
Aughinish Alumina Limited
Aughinish Alumina Limited
Trinity College
Gemserv Limited
Bord na Móna Powergen
Electric Ireland
Flogas Ireland Ltd
Glanbia Dairy Ingredients Ltd
Energia Generation
Siemens Ltd
Clarke Energy Ireland Ltd
Ibec
Ibec
DCENR
Apologies:
Mark Coyne
Marian Troy
Daniel FitzPatrick
John Hartnett
Mark Keogh
Dick Clerkin
Dalkia
SSE
Bord Gais Networks
Kepak
Siemens
Premier Periclase Ltd
Neil Walker acted as chair in Mark Coyne’s absence.
Agenda item 1: discussion on the national implementation of the EED and the Energy Efficiency
Obligation
Stjohn O'Connor (Principal Officer, Department of Communications, Energy and Natural Resources)
noted the EED implementation and the associated timeline, the scope of the energy efficiency
obligation scheme (SI 131) and floated the idea of an energy efficiency credit trading platform.
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The transposition deadline for the Energy Efficiency Directive is 5 June – a draft has been circulated
to the Commission for Energy Regulation, the Environmental Protection Agency and the Office of
Government Procurement.
Article 7 of the EED is therefore implemented through SI 131: Ireland’s target is to be achieved via
“alternative measures” (Article 7.9) rather than a national obligation (Article 7.1). While
acknowledging there will be a cost in meeting an annual obligation of 550GW primary savings,
Ireland must meet the target. The Minister will issue revised Energy Efficiency Notices to suppliers
week commencing 12 May.
SI 131 also provides for a buy-out of energy saving obligations and gives the Minister discretion to
penalise energy suppliers. The legislation also allows the Minister to direct the revision of buy-out
prices. Stjohn noted that if the cost of delivery is demonstrably lower, this should enable a reduction
in the buy-out price.
There will be significant activity over the coming months
- the European Commission’s review of the EED is expected in July.
- A guidance document will be issued to energy suppliers
- DCENR will also explore the creation of a trading platform for credits and assess the liquidity
of such a market.
- A standardised form will be made available to alleviate concerns regarding the awarding of
credits.
- An energy efficiency action plan for the public sector will be published shortly.
Q&A and observations
Q: Certification – what measures will be adopted to provide for certainty in the certification of
savings?
A: Registration system is required for auditors (as stated in the EED).
Q: What measures will be implemented to mitigate costs? For example, the “fuel poor” sectoral
target (and the associated buy-out price) could be categorised as having social policy at its core
and is adding cost.
A: There is the potential of using a weighted scheme or creating a trading platform
Q: The scheme puts an additional obligation on the energy sector – potential hurdles include a lack
of viable projects which could increase the cost of compliance (should not be out of line with the
cost of compliance in Europe).
Q: When would the credits exchange in the trading platform, before the work commences or upon
completion?
A: The credits would be sold before the project commences -there are methodologies in the market
to enable this.
Q: Minimum project size?
A: No.
Q: Case-studies would be helpful.
A: The department would welcome a website detailing case studies, exemplar projects, suppliers etc.
DCENR would co-fund such a website and would welcome the views of industry on its scope, scale
and viability.
Q: Are CHP sites included?
A: Yes (if not in ETS).
Q: ETS sites – could EE projects on an ETS site be included?
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A: It is a grey area; projects that reduce electricity consumption would count as indirect emissions.
Need to double check.
Q: Will the European Commissions review (post 2020) impact the obligation as it currently stands
and are EU wide penalties likely?
A: The European Commission is reviewing both the 2020 and 2030 frameworks – EU wide penalties
are unlikely but Ireland could be penalised if we fail to meet our targets.
Actions:
- DCENR to follow up on ETS sites and projects that deliver efficiencies.
- Contact SEAI for more information on the treatment of CHP and certification of savings.
Agenda item 2: Low-carbon built environment consultation
Ibec will make a submission to the consultation.
The scoping document gives a description of the categories of building to be included and identifies
demand-side and supply-side CO2 emissions of relevance for the Built Environment Roadmap.
DCENR would welcome input on current building stock; existing residential stock poses the greatest
challenge. The construction strategy should include proposals that stimulate activity. The deadline
for submissions is Tuesday 20 May.
Actions:
Members are asked to consider the following in the context of the built environment roadmap:
• Policies and measures to assist the transition
• Identification of structural measures (societal, technological, and environmental) to
support the transition
• Required governance structure
• Identification of barriers to transition (financial, technical, social)
• Necessary skills, training and qualifications
• Assessment of national monitoring and tracking databases for CO2 emissions for built
environment
Please send comments by Thursday 15 May – bullet points would suffice.
Agenda item 3: CHP targets
There is a lack of policy instruments to meet the Government’s 2007 White Paper target of
800 MW installed CHP capacity by 2020 – failure to meet the NEEAP could increase the
burden for energy suppliers.
Fingleton White and Clarke Energy prepared some analysis on the rate of return for autoproducer
and export CHP (6/7 years and 5/6 years respectively). In order to incentivise investment and the
realisation of targets, 1c per KWh subvention may be necessary.
Action:
 Request the permission of Fingleton White and Clarke Energy to circulate their analysis.
Time and date of next meeting
To be decided.
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