Oireachtas Joint and Select Committees

Wednesday, 26 September 2018

Joint Oireachtas Committee on Climate Action

Third Report of the Citizens' Assembly: Discussion

2:00 pm

Mr. Jim Scheer:

I thank the committee for affording the SEAI an opportunity to address members today.

The SEAI is Ireland's national energy authority that invests in and delivers appropriate, effective and sustainable solutions to help Ireland's transition to a clean energy future. We work with the Government, homeowners, businesses and communitiesto achieve this by providing expertise, capital funding, educational programmes, policy advice, research and demonstration support for new technologies. A part of SEAI's remit is to contribute to the evidence base for policy making in Ireland. This is supported by research, development and demonstration, RDD, statistics and modelling functions. We use a broad range of data sources, including data collected from the programmes delivered by SEAI. We administer the national energy modelling framework as part of our statutory functions. We execute this in partnership with a range of domestic organisations, Departments and State agencies with expertise in the Irish economy and energy sector, and with international organisations such as the European Commission, the International Energy Agency and EUROSTAT.

Our modelling function is central to the preparation of the national energy and climate plan, NECP. SEAI has direct experience of incentivising and delivering measures that reduce greenhouse gas emissions across the residential, commercial, public, industrial sand transport sectors. In a separate advisory note to the committee, we outline a summary of some of the key measures we are delivering that align with the recommendations of the Citizens' Assembly. I will highlight a short selection of these key opportunities now.

Ireland’s public sector building stock represents a significant opportunity for the Government to take a leadership role in our low carbon transition. By the end of 2017, the public sector in Ireland had reached a level of 20% energy savings from energy efficiency, meeting the overall 2020 national target. However, further work needs to be done to reach the 33% efficiency improvements savings target, as was set by the Government for the public sector, beyond the national target. To facilitate this, SEAI has run an award winning public sector programme for a number of years, funded by the Department of Community, Climate Action and Environment. The programme delivers material impact through capital projects, mentoring on energy management systems and capacity building within State bodies, such as the HSE, OPW, local authorities and the Department of Education and Skills. The programme includes a strong monitoring and reporting mechanism requiring all public bodies and schools to engage with their energy performance annually and work towards the 33% target. The programme has a strong focus on capacity building within State entities to make sustainable energy practices the norm in the Irish public sector. SEAI is developing a long-term pipeline of projects to assure high impact and cost-effective delivery of sustainable energy retrofits. This aggregation model will also allow non-Exchequer funding to be brought to bear, as volume increases to meet Ireland’s ambition. SEAI is currently working with State bodies to pursue non-Exchequer finance alternatives.

There is also a clear opportunity to deliver significant upgrades of homes through State-owned housing. The use of this stock as an exemplar of a national Government-led programme, represents an immediate opportunity to meet our residential retrofit targets.

Delivering actions that connect citizens to the need to act is also vitally important. In 2017, SEAI commissioned an assessment of models to support community ownership of renewable energy in Ireland to recognise the importance of community participation in the transition to a low-carbon society. This has supported development of options to provide for community renewable energy development and deployment, via the renewable electricity support scheme, RESS.

In addition to this input to the RESS development process, SEAI has been supporting microgeneration technologies through programmes delivered on behalf of Government for several years. In 2018, SEAI removed supported for new fossil fuel boilers and added grants for heat pumps, solar PV, and domestic battery storage. As EU Clean Energy Package starts to facilitate the generation, export and receipt of a market price for microgeneration export, the evidence base provided by these pilot programmes nationwide will help to de-risk this transition. With this evidence base, Ireland should be able to deliver the best-fit market mechanism at optimal cost to the exchequer and high value to the consumer.

In further support of communities over the last three years, SEAI has grown the sustainable energy communities network, which today boasts more than 200 communities spread across the country. We provide technical mentoring and advice for communities to develop their own energy masterplan. This process identifies the opportunities for them as they determine their own low carbon transition, including the potential for renewable energy. Through the renewable electricity support scheme and by looking at other market constraints, it is essential that communities are empowered to invest in renewable energy projects where these are economically, socially and environmentally sustainable. SEAI will continue to work with the various Departments and regulatory bodies to help to ensure that this becomes a reality.

SEAI delivers Ireland’s grants for new electric vehicle, EV, purchases and for home chargers with funding from Department of Communications, Climate Action and Environment. We are also engaged with the motor industry in delivering roadshows at various events and locations to increase the level of test-driving and user experience. Through the latter half of 2018 we will finalise a fleet replacement programme, which supports public and private sector businesses to test a range of EVs alongside their existing fleet to consider switching to EVs.

Our data show that in 2018 EV sales in Ireland will likely double as a result of the various incentives, including the grants, toll charges, benefit-in-kind, and fleet and taxi purchase scheme. As adoption of EVs grows, it is increasingly important that the charging infrastructure meets demand. In our role supporting the low emission vehicles task force, co-chaired by Department of Communications, Climate Action and Environment and the Department of Transport, Tourism and Sport, SEAI will be central to the provision of this infrastructure and a transition to lower emission vehicles.

Price signals that drive low-carbon investment and behaviour are key. An extension to the carbon tax could play a crucial role in reducing energy demand and greenhouse gas emissions, especially if a long-term trajectory is sent as a clear market signal. In many countries, the ring-fencing of carbon tax for climate mitigation activities can help to finance cost effective sustainable energy interventions. It can also links the taxation more directly to heightened awareness of its need and impact.

There is a much longer list of actions than I have had time to mention here, and many of these are detailed in the Government's national development plan and highlighted in other Government policy papers and include opportunities for: district heating; decarbonising gas; electrifying heat and transport and activities to further decarbonise electricity, transport and heat; and promote energy efficiency. All of these are required to achieve our goals.

The Department has highlighted already the importance of the upcoming national energy and climate plan, NECP. To highlight SEAI's contribution to the plan, in its review of national energy and climate plans, the European Commission will consider member states' NECP commitments against the outputs from a new EU model. SEAI is supporting the Department of Communications, Climate Action and Environment and liaising with EU officials to ensure that that model is based on the latest available data for Ireland. Further to these inputs, SEAI provides a central supporting role to the Department of Communications, Climate Action and Environment, via development of energy projections for Ireland to 2030 and 2040, as part of our statutory authority to produce the national energy statistics and national energy projections. These will meet many of the analytical requirements of the NECP. The scenarios are being developed in consultation with the Department and other key stakeholders. We are further supporting the Department across wider policy development in research, development and deployment, and innovation on sustainable energy activities.

The EU's recent suite of legislation, including the governance regulation, mandate minimum levels of effort for member states to adhere to, in terms of emissions reductions across the economy. Member states are, however, fully entitled to design more ambitious plans. This is crucial, as it is currently unclear as to whether the EU targets are ambitious enough to deliver on its commitments under the Paris Agreement. Against this backdrop SEAI is grateful for the support and resources committed to us via Department of Communications, Climate Action and Environment. We are committed to supporting this committee, and wider Government, to transform Ireland into a society based on sustainable energy, technology and practices. I thank the committee.