Written answers

Tuesday, 19 February 2013

Department of Communications, Energy and Natural Resources

Energy Conservation

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources if he will outline the details of the voluntary agreements between the Sustainable Energy Authority of Ireland and nine energy suppliers, announced in March 2012 relating to energy saving targets for energy suppliers; his views on whether enough is being done by the energy suppliers to tackle energy reduction; and if he will make a statement on the matter. [8782/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources if he will outline by individual energy supplier, the specific energy reduction targets achieved per quarter to date, under the energy saving targets for energy suppliers scheme; his views on whether the overall targets will be achieved by the end of the three year cycle in 2013; the penalties that will apply per energy supplier if the targets are not met based on current targets achieved; and if he will make a statement on the matter. [8783/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources if he will outline by individual energy supplier, the specific energy reduction targets achieved solely in the residential sector per quarter to date under the energy saving targets for energy suppliers scheme; his views on whether the overall targets will be achieved by the end of the three year cycle in 2013; the penalties that will apply per energy supplier, based on current targets achieved; and if he will make a statement on the matter. [8784/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources in view of the ending of grants from the Sustainable Energy Authority of Ireland, if he has met with the energy suppliers, to discuss legally binding targets for energy reduction measures for the residential sector; his views on the progress from the energy suppliers in this area; and if he will make a statement on the matter. [8785/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the better energy programme, specifically with regard to formal targets on energy suppliers to reduce their customer's household emissions; and if he will make a statement on the matter. [8786/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources if he will outline in tabular form the approved Sustainable Energy Authority of Ireland measures for residential properties to help achieve Ireland’s carbon reduction targets; if he will include, in tabular form, the cost per kWh for energy suppliers to achieve his targets, using the following measures, solar panels, external wall insulation, internal wall insulation, heating control upgrade, roof insulation, cavity wall insulation, remote control heating; and if he will make a statement on the matter. [8787/13]

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the date on which he proposes to introduce legislation that requires energy suppliers to offer homeowners energy saving products as part of European Union targets; if the legislation will contain penalties for failure to comply with this; what those penalties will be; and if he will make a statement on the matter. [8788/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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I propose to take Question Nos. 475 to 481, inclusive, together.

The Better Energy programme is Ireland’s national energy efficiency upgrade programme, for which specific targets for energy savings are set out in the National Energy Efficiency Action Plan (NEEAP).

The NEEAP emphasises the role of market actors in facilitating the delivery of energy savings, with the introduction of energy saving targets for energy suppliers a key measure underpinning the delivery of the 2020 energy saving target. It is unlikely that Ireland’s 2020 energy and climate change targets can be met through the provision of state incentives alone. A move to a market-based programme is a logical step in mainstreaming energy efficiency within the energy supply sector in line with EU ambitions.

Energy suppliers have the option of either signing a voluntary energy savings agreement with the Sustainable Energy Authority of Ireland (SEAI) or being subject to a statutory Energy Efficiency Notice issued under the Energy (Miscellaneous Provisions) Act, 2012.

The following 16 energy supply companies have signed voluntary energy savings agreements in lieu of an Energy Efficiency Notice for the period 2011-2013:

-Airtricity

-Bord Gáis Energy

-Bord na Móna

-Energia

-Electric Ireland

-VAYU

-Irish Petroleum Industry Association (includes ConocoPhillips, ESSO, Inver, Maxol, Valero, Tedcastles, Topaz)

-Calor

-Arigna Fuels

-Stafford Fuels.

Energy suppliers that have signed voluntary agreements with the SEAI are known as Participating Energy Suppliers (PES). These companies account for over 90% of the overall Energy Supplier Target that needs to be achieved by the end of 2013. The SEAI is in the process of finalising the 2013 Annual Plans from these companies. The Department and the SEAI are also in discussions with a small number of additional energy suppliers who have not yet finalised voluntary agreements.

A three year programme target of 2,000GWh was set for the period 2011-2013; to be achieved by a combination of energy supplier-led initiatives and SEAI programme activity. The target for 2011 was 500GWh, which was met (533GWh were delivered). The combined target for 2012 and 2013 is 750GWh.

It is not possible to provide the specific energy savings achieved by individual energy suppliers, as targets are based on commercially sensitive energy sales data, provided to the SEAI for analysis on a confidential basis. Table 1 provides a breakdown of energy savings, as opposed to CO2 savings, achieved by sector on an annual basis for all savings achieved; Table 2 provides a breakdown of energy savings achieved by sector for savings achieved in the residential sector. Projects from 2009-2011 were bundled into one group as energy suppliers were permitted to report historic savings and count these against the 2011 target.

The energy credits available for each measure in residential properties is outlined at Table 3.

It is not possible at this time to provide a cost per kWh for energy suppliers to achieve their target, as this will vary depending on the delivery method and the sector. However, the Department and the SEAI are engaged in an economic analysis of the programme at present.

Information supplied by the SEAI shows that 81% of the target for 2011 and 2012 was achieved by the end of 2012. While this is a positive start, and indicative of a start-up period during which energy suppliers had to set up internal systems, there will need to be a substantial increase in engagement from energy suppliers in 2013 in order to achieve the necessary energy savings targets.

Legislation is already in place requiring energy suppliers to offer homeowners energy saving products. Where a Participating Energy Supplier is not complying or is not likely to comply with the terms of a voluntary agreement, the Minister may revoke his approval of a voluntary agreement and issue an energy efficiency notice under Section 11 of the Energy (Miscellaneous Provisions) Act 2012. In this case, or in cases where a voluntary agreement between an energy supplier and the SEAI is not in place, the provisions of Section 11 (2) allow the Minister to require the energy supplier to take appropriate steps to address the deficiency.

Failure to comply satisfactorily with an energy efficiency notice may result in the Minister issuing a direction under Section 11 (7), specifying the remedial action the energy supplier should take and the timeframe this should be completed in. In the event of continued non-compliance following a direction, the Minister may apply to the High Court for an order directing the energy supplier to comply with the direction.

The publication of the Energy Efficiency Directive in November 2012 provides for Member States to establish Energy Supplier Obligation Schemes. This is a standing item for discussion with energy suppliers at the quarterly governance meeting chaired by my Department. Decisions on a replacement for the existing programme, including mandatory targets, will be informed by the economic analysis currently being undertaken, performance of the energy suppliers and the distance to target that remains to be delivered at the end of 2013. I expect to be in a position to communicate my decision regarding the replacement programme later this year.

Table 1 - Energy savings achieved by sector

Industry Sector*
2011 (GWh)
2012 (GWh)
Total (GWh)
Electricity
96.43
55.67
152.09
Gas
53.07
25.52
78.59
Oil
13.15
50.02
63.17
Solid Fuel
27.2
49.56
76.76
Total
189.85
180.77
370.62

*As industry is split into sectors depending on their majority business, a company which sells 60% electricity and 40% gas is recorded as electricity.

Table 2 – Domestic and non-domestic energy savings

2011 (GWh)
2012 (GWh)
Total (GWh)
Domestic
28
32.89
60.89
Electricity
4.35
7.67
12.02
Gas
21.66
0.13
21.79
Oil
-
24.6
24.6
Solid Fuel
1.99
0.48
2.48
Non-Domestic
161.84
147.88
309.71
Electricity
92.08
47.99
140.07
Gas
31.41
25.39
56.8
Oil
13.15
25.42
38.57
Solid Fuel
25.2
49.07
74.27
Total
189.84
180.76
370.62

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