Description:The Energy Efficiency Directive (EED) sets out the policy roadmap up to 2020 – it was adopted in 2012 and Member States were bound to transpose it into national legislation by 2014. Each Member State is obliged to publish (and regularly review) a National Energy Efficiency Action Plan. Ireland has transposed it, partly through the Energy Efficiency Obligation Scheme. This gives effect to the scheme and the powers of the Minister in relation to the issuing of Energy Efficiency Notices. It details the rules surrounding the buy-out of energy saving obligations should energy suppliers not meet their targets, as well as the penalties. The regulation also provides for the establishment of an Energy Efficiency Fund.
Implication(s):Measures aimed at reducing energy consumption could improve the cost base for industry. A number of innovative financing instruments aimed at incentivizing energy efficiencies have been introduced. The Better Energy Homes Scheme, administered by SEAI, provides grants to homeowners to undertake energy efficiency measures such as insulating walls or attics and installing new heating systems. In cases where proposed efficiencies have longer payback periods, the ESCO model could fill the gap in these instances. The EED introduced an energy auditing requirement for larger companies - qualifying companies were due to complete the first audit by 5 December 2015. Energy supplier obligations and the costs associated with achieving energy savings will likely trickle down to the consumer. Opportunities will present themselves for innovative “green” products in the drive for green public procurement; however, environmental purchasing criteria may also present hurdles for innovative products or services.
Current Position:Ireland’s instruments in meeting climate change, renewable energy and energy efficiency objectives must be complementary, cost efficient and executed in a coherent manner. Ibec recommended the Government avail of the permitted flexibilities in the EED to prevent costly over-compliance with Ireland’s 2020 obligation. The Energy Efficiency Obligation Scheme (EEOS) and the sub-targets could make it more difficult for energy suppliers to meet their energy efficiency targets, and could risk increasing costs for the end consumer. At an EU level, the European Commission is consulting on the EED with a special focus on energy efficiency, EEOSs, energy metering, energy billing information, energy efficiency national fund, energy efficiency financing.
- Short Guide to Energy Efficiency and PAYS.pdf - 153 Kbytes
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Last Updated: 01/18/2016