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Industrial Development

Dáil Éireann Debate, Tuesday - 11 June 2013

Tuesday, 11 June 2013

Questions (74)

Michael McGrath

Question:

74. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources his views on the ability of Ireland to become a leading exporter of home insulation products and skills; and if he will make a statement on the matter. [27853/13]

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Written answers

The market for technologies and services associated with sustainable energy and decarbonisation is growing rapidly. Internationally, the International Energy Agency estimates that governments will need to spend $180 billion in 2035 alone on sustainable energy measures to achieve climate change targets. Ireland is ideally positioned to sell the skills of the domestic ICT sector, to test technologies and to develop export industries from our sustainable resources.

The energy retrofitting of homes is an established industry in Ireland, primarily on foot a number of major government interventions in this sector. The Better Energy Homes scheme administered by the Sustainable Energy Authority of Ireland (SEAI) provides grant support to homeowners wishing to upgrade their home insulation and heating systems. To date over 140,000 homes have been upgraded through this scheme with grant aid of €240m and matched private investment of over €270m. The Better Energy Warmer Homes Scheme funds the direct provision of insulation upgrades to vulnerable energy poor homes, with almost 97,000 homes completed to date. More recently the introduction of energy efficiency obligations on energy suppliers is stimulating additional energy retrofitting activity, further enhancing momentum in the sector.

The installers operating under the aforementioned schemes are all subject to very demanding registration terms in respect of technical competence and professional practice. They are also subject to the rigour of SEAI’s quality assurance scheme. This focus on quality is intended to transform the sector, give consumers confidence, prepare the sector for further growth and opportunities to export the expertise to countries where demand is stimulated. The export opportunities for the sector are twofold, namely the insulation and heating products and the skills and expertise of the professional installers.

SEAI are already engaging with a number of industry stakeholders and enterprise agencies to consider opportunities for packaging the skills and expertise within this sector specifically for export to other jurisdictions. It is not without its challenges however, given that insulation is a worldwide industry with all players seeking international markets, where standards can vary by country and demand being tied somewhat to the building industry.

The Department of Enterprise, Jobs and Innovation which has general policy responsibility for sustainable job creation has informed me that following rapid contraction of the Irish construction market witnessed in 2007, the Irish insulation market prioritised a twofold strategy of UK (and European) market development coupled with an investment programme of new product development. Enterprise Ireland has worked in partnership with the sector on both strategies and through a series of market entry supports, R&D incentives, promotion of management development programmes, the sector has rebounded strongly and is now entering a new phase of growth. Currently, the Irish insulation sector represents circa 14% of the UK insulation market with established defined routes to market and developed recognised international brands. In parallel with the market entry of insulation manufactures to the market, a sub-sector of Irish insulation installers has developed a presence in the UK market. The sector is ideally poised to supply innovative solutions to the recently launched UK Green Deal.

The expansion of the sector has also extended to near European markets with market penetration witnessed in Benelux, France and Germany.

More generally Ireland has a reputation as an early mover in advanced energy management, as illustrated by the development of the Irish energy management standard, IS 393, in 2006, which informed the development of the EU standard and in turn informed that of the global standard, ISO 50001. The market for this global standard, and associated services, is expected to be considerable. This creates the opportunity to export expertise and services in a fast-growing international market.

Finally, there is considerable interest in the ICT sector in the applications in energy relating to smart infrastructure, technology and control. A transition to smarter infrastructure, with greater use of software, sensors and controls, has already started, and this plays to Ireland’s strengths in this sector.

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