Brian Hayes (Dublin South West, Fine Gael)
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Question 470: To ask the Minister for Communications, Energy and Natural Resources the incentives to support transition to low carbon energy efficient economy that have been introduced following the publication of Building Ireland's Smart Economy report; the uptake of these incentives; and the anticipated cost to the Exchequer of funding these incentives. [43115/09]

Brian Hayes (Dublin South West, Fine Gael)
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Question 471: To ask the Minister for Communications, Energy and Natural Resources the new incentives that have been provided to increase investment in household and business energy efficiency as outlined in Building Ireland's Smart Economy report; the uptake of these incentives; and the anticipated cost to the State of funding such incentives. [43116/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 470 and 471 together.

The Government has set a target of achieving 20% energy efficiency savings across the economy in 2020. As part of this energy efficiency drive, the Government has also committed to achieving a 33% energy saving across our public sector institutions by 2020.

On 8 May this year I published the National Energy Efficiency Action Plan (NEEAP) which sets out 90 actions that Government is either already taking or will take in the period to 2020 to achieve the national energy efficiency targets. The savings identified in the Action Plan represent approximately €1.6 billion in avoided energy costs for the economy in 2020.

Together with Minister Gormley I launched the National Insulation Programme for Economic Recovery earlier this year. The Programme entails a three pronged approach to addressing the legacy of older housing with poor energy efficiency standards.

The Home Energy Saving (HES) Scheme, which is administered by Sustainable Energy Ireland (SEI), provides grant assistance to homeowners for energy efficiency retro-fitting measures including attic and wall insulation, very high-efficiency boilers, heating controls and Building Energy Rating (BER) assessments.

The scheme is open to anybody owning a house that was built prior to 2006. Homeowners can expect to save up to €700 per year on their energy bills if they install the full suite of measures available under the scheme. The scheme offers grants of up to 40% of the typical cost of energy efficiency upgrade measures, depending on the measure concerned. A list of eligible measures and fixed grant rates is set out in the following table:

The Warmer Homes Scheme also provides support for low income housing for insulation and other energy efficiency improvement measures. This scheme is managed by SEI and implemented by local community groups. Measures include cavity wall insulation, attic insulation, boiler lagging jackets, draught proofing measures and Compact Fluorescent Lamps (CFLs). These measures are provided free or at a nominal cost to the householder. Advice is also provided on minimising energy use.

Some €20 million has been made available to the Warmer Homes Scheme in 2009. This represents a very substantial increase on previous years and the WHS is expected to support energy efficiency interventions in up to 15,000 low income homes this year.

The Minister for the Environment, Heritage and Local Government has also set aside some €25 million for two initiatives designed to address thermal inefficiencies in local authority dwellings. Of this, €20 million has already been allocated to local authorities to improve the energy efficiency of dwellings and apartment complexes, to a BER standard of C1. €5 million has been set aside to support a number of demonstration projects that will achieve a BER rating in excess of C1 and will inform the future improvement of the overall local authority stock.

In the business sector, the greatest cost-cutting and energy saving potential lies in improving the energy performance requirements of new non-residential buildings, improvement of existing buildings, encouraging more businesses and public bodies to actively address their energy use and to use the most energy efficient plant, machinery and equipment.

In an effort to realise this potential, Sustainable Energy Ireland launched in 2009 a €6 million programme that offers grant assistance to the business and public sectors. The programme allows important cost-cutting energy efficiency measures to be installed at significantly reduced cost to businesses across the country. Over 80 projects are currently underway under the programme. As a result of the work carried out, annual savings are expected to be approximately €2.6 million, alongside 12kt CO2 reductions.

A dedicated support programme has also been established by SEI offering free energy management training, advice and support to any business that is willing to show a commitment to becoming more energy efficient.

SEI's Large Industry Energy Network also engages all of the largest energy using enterprises (in manufacturing and services) where the 120 member companies collectively spend over €800 million p.a. on energy. Recently published analysis shows that by spending €1.9 million these large companies avoided energy costs of €60 million in 2008 alone.

Government has also extended the Accelerated Capital Allowances scheme to take account of additional categories including energy efficient IT infrastructure and electric vehicles. The Scheme allows businesses to make the right economic decisions that will support ongoing savings whilst increasing cash-flow in the year of purchase. Companies can now write off the full capital cost of energy efficient equipment in the year of purchase. The ACA scheme currently covers equipment accounting for at least 60% of the energy used by industry in Ireland.

The Public Sector Energy Efficiency Programme is designed as the main delivery mechanism for coordinating and encouraging energy efficiency actions by our public sector bodies. It is providing free energy assessments of up to 400 public buildings in 2009. It is providing professional advice on energy management and energy efficiency improvement measures and aims to train 150 public sector building managers this year. SEI is also developing best practice guidance materials and facilitating specialist workshops on matters such as public street lighting, water services, and ICT.

Regulations are currently being finalised in my Department that will include new energy efficient public procurement rules and these will be in place in the coming months. These new rules will require public bodies to purchase or lease only plant and equipment across a diverse range of technologies that are listed on SEI's database of highly energy efficient products. This database was developed as part of the Accelerated Capital Allowance Scheme for energy efficient technologies.

SEI is also tasked in these regulations with producing general guidelines on energy efficient procurement and these will be progressed in conjunction with the new OPW National Public Procurement Office.

I am also currently finalising proposals to bring to Government on a new Programme – the Energy Demand Reduction Target (EDRT). The EDRT programme will involve the promotion of energy services by energy companies in Ireland. There is significant potential to further reduce energy costs and related greenhouse gas emissions in homes and business across the country whilst creating employment and developing a market for energy services in Ireland.