Dáil Éireann Debate, Wednesday - 3 February 2010
351 Deputy Enda Kenny asked the Minister for Communications, Energy and Natural Resources the amount and value of electricity and emissions expected to be saved annually up to 2020 in the electricity generating sector through his national energy efficiency action plan 2009 to 2020, published in 2009; and if he will make a statement on the matter. [5549/10]
View answerThe 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 the public sector by 2020.
The National Energy Efficiency Action Plan (NEEAP) 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 and will also reduce carbon emissions. An inter-departmental/agency group will oversee the implementation of all NEEAP measures. Reporting, verification of savings and communication of progress towards the 2020 targets including the public sector target will be key outputs from this group. Sustainable Energy Ireland (SEI) is currently finalising the methodology for calculating the energy savings associated with key NEEAP actions.
352 Deputy Enda Kenny asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to a report prepared for the all-island grid study (details supplied) published in 2009 by the Commission for Energy Regulation; if so, the reason the report predicts, on page 24, that Ireland will miss the EU emissions target for the electricity generating sector even if the renewable electricity generating target of 40% of demand by 2010 is achieved; the expected cost of this failure for 2020; the cumulative cost each year to 2020; the measures and actions he has taken to address this situation; and if he will make a statement on the matter. [5550/10]
View answerAs the Deputy notes this report was prepared by the Commission for Energy Regulation (CER). Applied to the Irish electricity sector, the EU target for the reduction in industrial emissions (traded sector) results in a reduction from 15.6Mt CO2 (2005) to 12.3Mt CO2 (2020). It should be noted that this is not a fixed physical emissions reduction target for this sector as carbon credits may be purchased or exchanged by participating entities, should they fail to reach the emissions target imposed on them. The overall reduction in this sector may therefore be a total cut in CO2 emissions to the level required or a mixture of cuts and credit purchases should cuts alone not prove economic.
On the highlighted page 24 of the referenced report on the ‘Impact of High Wind Penetration in 2020 on the Single Electricity Market', based on modelling and assumptions outlined in that report and previous work carried out as part of the All Island Grid Study, it was noted that the electricity sector may not reach the emissions targets it is obliged to reach as part of the wider Irish and EU target. Page 24 discusses the results from the ‘Central' modelling scenario in the report, for which a demand growth of 3.5% annual is assumed. In the ‘Low' scenario, a demand growth of 2.7% was assumed, resulting in CO2 emissions of approximately 12.8Mt CO2, which is just above the target.
These demand growth levels were taken from the All Island Grid Study to ensure consistency in approach between the modelling and to allow comparisons. In addition, the wind penetration report was drafted in summer 2008, when high demand growth was foreseeable in the future.
Over the course of 2009, demand for electricity fell by approximately 7%. Given this large drop, growth in annual electricity demand may not be as high as that envisaged in the low scenario and on that basis it could reasonably be concluded that we are more likely to meet the outlined 12.3Mt CO2 target in the electricity sector in 2020. Critically also, the 40% target should not be regarded as a limit to our ambitions. If it proves possible, and recent analysis suggests that it may, to go beyond 40% renewable electricity, then doing so will obviously further reduce emissions from the electricity sector
