Sustainable energy: Leading the way to a low carbon future

Dr Eimear Cotter, Head of Low Carbon Technologies, SEAI, looks at the wider economic benefits of investing in energy efficiency and renewables.

The underlying imperative for a low-carbon and climate resilient economy is to reduce greenhouse gas emissions and to prevent the worse impacts of climate change. Increasingly, however, the transformation of Ireland’s energy system is also being framed in the context of wider macroeconomic benefits such as improving our energy security; investment opportunities in sustainable energy technologies and services; and the thousands of jobs that such a transition could deliver. It is increasingly evident that low-carbon and economic competitiveness are not mutually exclusive but, in fact, are actually complementary and
re-enforcing. The evidence emerging from a number of recent SEAI studies further contributes to this knowledge base and some key points are highlighted here.

Opportunity
The transition to a low-carbon economy comprises energy efficiency on the one hand and renewable energy and de-carbonising our energy sources on the other. Energy efficiency in our homes and businesses makes an important contribution towards reducing greenhouse gas emissions and reducing Ireland’s reliance on imported fossil fuels. There are multiple additional benefits attached to unlocking this opportunity. These include an investment opportunity that will bring savings of over €11 billion; improvements to the Government balance sheet of around €1 billion; and creation of 2,000 additional jobs. Further benefits include improved health from living in warmer homes. There is definitive evidence that energy efficiency is good for households, good for businesses and good for the economy.

From an industry perspective there are many excellent examples of companies making good strides in energy efficiency. For example, Dawn Meats has actively embraced the efficiency of the organisation’s processing operations and created substantial savings that can be re-invested in the expansion of the business as well as generating further local employment. They have implemented an innovative waste heat recovery solution with 90 per cent of their hot water needs now delivered using recovered heat from processes which were happening anyway.

Yet even though good progress is being made, there is still huge potential to do more. We found that while there are a range of policy interventions available, these should also incorporate the behaviour and decision-making process of the consumer. This approach would recognise that consumers respond differently to interventions depending on, for example, their decision-making frequency, knowledge, level of engagement and financial constraints. By targeting interventions at specific customer types and at particular stages of the decision-making process the uptake of a range of energy efficiency measures could increase under a variety of policy interventions.

De-carbonising our energy sources
When it comes to de-carbonising our energy sources, Ireland’s use of renewable sources has been growing in recent years. In 2014 alone renewable energy use increased by 12 per cent. Wind accounted for nearly a fifth of electricity generated, the second most significant source of electricity after natural gas. Renewables are lowering the carbon intensity of electricity generation with renewable electricity which is now half of what it was in 1990. This is a vital component of the transition to a low carbon economy with electricity generation in Ireland currently accounting for nearly a fifth of national greenhouse gas emissions.

And this deployment of renewable energy also brings positive macroeconomic and net employment benefits. Using our indigenous renewable energy resources to meet renewable targets could boost Ireland’s GDP and support thousands of new jobs while also reducing our fossil fuel dependency and greenhouse gas emissions. In relation to the 2020 renewable heat target, achievement of this target through the use of locally sourced biomass will result in positive macroeconomic benefits and net employment. In particular, additional jobs could be created in the forestry and agricultural supply chains. Onshore wind deployment also has a consistently positive impact on the economy and net employment potential with jobs created in construction as well on ongoing direct jobs in operations and maintenance. In addition, GDP could increase as a result of building new wind farms and expansion of the electricity grid.

There are also substantial enterprise opportunities for Irish suppliers of sustainable energy products and services. Companies such as ServusNet are already active in this space with their software platform currently enabling wind-farm operators to pursue predictive operational and maintenance strategies in the US wind market. Another example is engineering start-up NovoGrid who has developed an intelligent control system to improve energy efficiencies on wind farms with significant global potential and global customers. It is an example of the excellence in research and innovation that is happening in Ireland and will provide value-added products and services for the global market.

In terms of communities, the Aran Islands are leading by example and could be carbon neutral by 2022 through a combination of insulation, electric vehicles, heat pumps and wind generation. What this investment means is that money that would be sent abroad to buy energy from others will be kept in the local community, spent on local jobs, technologies and interventions. This progress has been achieved through the Government’s Better Energy Communities scheme, which has awarded over €62 million to community energy efficiency initiatives to date. This scheme sees community co-operatives all over the country coming together with local authorities, businesses and sports clubs to improve energy efficiency in homes and local facilities.

Tangible benefits
We have made considerable progress in terms of retrofitting homes, businesses and communities and in terms of growth in renewable energy. The evidence points overwhelmingly to a wide range of tangible benefits that will accrue to Ireland should we continue to play to our strengths, in this case local and clean energy resources. These include environmental benefits such as reduced greenhouse gas emissions and also wider macroeconomic impacts such as enterprise opportunities, job creation and energy security. Robust and timely evidence, such as that produced by SEAI, ensures that high quality analysis and data continues to inform the on-going energy transition in Ireland and the development of optimal energy solutions for the future.

Dr Eimear Cotter
Head of Low Carbon Technologies
Sustainable Energy Authority of Ireland
Wilton Park House
Wilton Place, Dublin 2, D02 T228
p: +353 1 808 2074
f: +353 1 808 2002
e: eimear.cotter@seai.ie
w: www.seai.ie