Ibec Energy Efficiency Working Group - Minutes

20 March 2014, 10.30am -12.30pm

84-86 Lr Baggot Street, Dublin 2

______

Attendance

Cormac Mannion / Energia
Paul Dunne / Google
Robbie Aherne / EirGrid
Shane Leavy / MSD Swords
Justin Maguire / Bord na Móna
Marian Troy / SSE Airtricity
Domhnall Carroll / Siemens Ltd.
Paul Phelan / Intel
Dick Clerkin / Premier Periclase - RHI AG
Anthony Burke / Premier Periclase - RHI AG
Cathal Murphy / Bord Gais Energy
Ciara Brody / Fingleton White & Co Ltd
Ann Fingleton / Fingleton White & Co Ltd
Tom de Lasa / Xerox (Europe) Ltd.
Tom Moriarty / Dell Inc
Mark Coyne / Dalkia
John Curley / Clarke Energy Ireland Limited
John O'Donoghue / Flogas Ireland
Ronan Stewart / Phillips66
Mark Keogh / Schneider Electric Ireland
John Walsh / Tesco Ireland
John Ryan / Aughinish Alumina Ltd
Neil Walker / Ibec
Catherine Joyce-O'Caollai / Ibec
Josephine Maguire / Sustainable Energy Authority of Ireland
Kevin O’Rourke / Sustainable Energy Authority of Ireland
Majella Kelleher / Sustainable Energy Authority of Ireland

Apologies

Aileen O'Connell / Aughinish Alumina
John Kane / Dalkia
Eugene Mulholland / Sigma Aldrich
Deaglan O’Domhnaill / Electric Ireland
Paul Dunne / Google
Ger Hartnett / Bord Gais Energy
Mark Woods / The Maxol Group
Nicole Ridge / Arthur Cox
Raymond McNally / Microsoft

Actions from the meeting:

1)  Email priorities for consideration in the work plan.

2)  Contact Catherine if you are interested in assuming the role of working group chair.

Agenda item 1: European Commission consultation: Energy Efficiency: Progress towards the 2020 energy efficiency objective and a 2030 energy efficiency policy framework - Jacek Truszczynski, DG Energy, European Commission

The Commission will submit a report to the Council on further policy measures for 2020 as well as the 2030 framework. They are currently working on an impact assessment and plan to issue a communication in mid-July.
The consultation seeks to answer 4 questions:

1)  Are we on track for 2020?

2)  If not, what should be done about it?

3)  What is the economically optimal level of ambition for energy efficiency in 2030?

4)  What approach should be adopted to achieve it?


Jacek discussed the various analytical approaches to answer these questions. In an effort to understand the level of progress for 2020, analysis is based on the national indicative targets, plus PRIMES modelling and a bottom-up analysis of various policies such as NEEAPs.

There are a number of proposed options to meet the Commission’s estimated 2020 shortfall of 3%, ranging from new legislation, national targets or strengthened implementation. The European Parliament advocated setting national binding targets; however the Commission questions the benefits of this approach instead favouring strengthened national implementation.
The 2030 framework will be balanced with the economically optimum level of ambition, as well as the overall architecture (indicative or binding) and the design of target (economy wide or sector specific).
Discussion:

-  The 3% gap is on the basis of absolute consumption which reflects the economic downturn, and economic growth could make efforts to meet the target more difficult.

-  Financing mechanisms: the Energy Efficiency Financial Institutions produced a report on the barriers to financing energy efficiency.

-  Target model: the implementation of the target model will complement energy efficiency objectives, given the roll out of smart meters, demand side management, as well as increased competition deriving from utility obligations.

Agenda item 2: presentation on the Energy Efficiency Directive, Sustainable Energy Authority of Ireland

The presentation included a brief overview of the Energy Efficiency Directive – it will impact on five sectors, including energy supply, public sector, industry, transport and residential. Energy supply will be a key area, and technology will be vital in delivering energy efficiency.


There are four enabler groups, including people, information, financing and regulations.
There are numerous dates and deadlines for the 30 articles in the directive. In the coming months, DCENR will lodge the National Energy Efficiency Action Plan with the European Commission. Furthermore, the deadline for transposition of the directive is June.

Article 7 of the EED allows for alternative policy measures in meeting the Energy Efficiency Obligation. Energy suppliers will be obligated to deliver 550 GWh of primary energy savings up to 2020. As a result, each supplier will have an annualised target. Savings are in absolute terms and it is a bottom up approach.

Discussion
- SEAI offered support in terms of terms of audits and project management i.e. can assist if there is a skills gap.
- DCENR consulted on the implementation of the EED – Ibec made a submission.
- The Large industry energy network, Energy MAP and building regulations improving energy efficiency.

- Ireland is performing well when compared to other Member States - there is a whole array of bottom up activity and Ireland is outperforming in certain aspects. However, when asked about the potential of trading or buying credits, a trading mechanism such as that in place for renewables does not exist. The European Commission may explore regional composite targets.

- Current government policy will not provide the necessary incentives to meet installed CHP capacity.

Agenda item 3: Work plan and priorities discussion

- The working group needs to draw up a list of priorities and a range of requests i.e. if some technologies require additional effort, costs concerns regarding the implementation of the EED, equity concerns, identify what stakeholders to approach etc.

- Domestic and fuel poor obligation will pose the biggest challenge and a significant cost burden which could lead to distribution effects. A shortfall in the public sector shouldn’t increase the burden for industry, residential etc.

- It was asked whether the supplier obligation be assigned to the Energy Providers Working Group, or are there benefits in having a cross-sectoral approach in devising responses to policy proposals.

- The group should also decide upon the level of engagement at the EU level: it may be the case that the interests of industry would be better placed by focusing on national issues with the EED as the cornerstone for interaction.

- The group has an important role to play in gathering feedback from projects on the ground. Furthermore, the goals of reduced energy consumption and reduced costs should be complementary.

- From a costs perspective, the domestic sector and fuel poor obligation poses one of the biggest challenges. Pay As You Save has stalled and much of the of the affordable retrofit in the domestic sector has been done. Meeting the fuel poor sectoral target could be very challenging.

- The work plan should address CHP and district heating, specifically the lack of policy instruments to meet the Government’s 2007 White Paper target of 800 MWe installed CHP capacity by 2020.

- The working group could serve as an important collaborative forum for suppliers and industry.

- It would be worthwhile to get a sense of the level of industry engagement in designing the Energy Efficiency Fund.

Action: Email priorities for consideration in the work plan.


Working group chair
The working group requires a chair to steer the work plan.

Action: Contact Catherine if you are interested in assuming the role of working group chair.

AOB

Work/site commitments may prevent interested parties from attending - is there a way to facilitate remote participation?

Time and date of next meeting

Friday 9 May, 11am, Ibec Dublin

4