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Energy Schemes

Dáil Éireann Debate, Wednesday - 11 June 2014

Wednesday, 11 June 2014

Questions (98)

Brendan Griffin

Question:

98. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources if his Department has grant aided schemes available to businesses to reduce their energy costs; and if he will make a statement on the matter. [24828/14]

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Written answers

The Better Energy Workplaces Scheme, which funded new approaches for implementing sustainable energy upgrades to existing facilities in the public, commercial and industrial sectors closed in 2012. In the four years of its operation (including its precursor schemes), some 321 projects were funded with over €36m grant aid disbursed to eligible projects, which realized 822GWh of energy savings. The Scheme has been replaced with the National Energy Services Framework, supported by the Energy Efficiency Fund, designed to stimulate innovative energy efficiency projects in the commercial and public sectors. Following the commitment in the Programme for Government and National Energy Efficiency Action Plan (NEEAP), my Department developed the National Energy Services Framework in 2013 to help develop the energy-efficiency market in the non-domestic sector throughout Ireland. The Framework provides an integrated resource to both businesses and public bodies to help them become more energy efficient. The key to the success of the Framework will be the ability to identify and build a pool of investment grade projects. The first tranche of exemplar energy efficiency projects was launched in June 2013. Collectively, the exemplar projects will see investments of up to €55 million in energy saving measures, resulting in annual energy cost savings of €7 million. A total of €550,000 in technical assistance has so far been committed across the exemplar projects. The Framework will be complemented by the Energy Efficiency Fund, which will provide commercially priced finance to energy efficiency projects. The energy Efficiency Fund was established in March 2014 with the objective of providing appropriately priced finance for energy efficiency projects in the public and private sectors. Its aim is to address one of the predominant barriers to economic activity in the non-domestic sector – the availability of credit that is structured properly and of appropriate term. This financing gap is being experienced across all sectors of the economy, not least the public sector.

The government has committed up to €35 million as a cornerstone investor in the Fund, which is being managed by Sustainable Development Capital Limited (SDCL), with a view to establishing a fund of over €70 million when matched with investment from the private sector. It is anticipated that as much as €300 million in leveraged funding will be delivered based on a fund size of €70 million. Just last month I was delighted to announce that Tesco Ireland will become the first company to avail of the fund as part of a significant retrofit programme and the first Sustainable Energy Authority of Ireland (SEAI) exemplar project to reach financial close. In a deal worth €2 million Irish energy services company, DCS Electrical (DCS) will retrofit an initial seven Tesco stores with a follow-on funding commitment for up to 40 stores nationwide. The project to replace existing lighting across 7 Tesco stores with high-efficiency LEDs is expected to result in the creation of 16 new jobs at DCS and deliver estimated average annual energy savings of over €540,000.

The SEAI continues to support the Large Industry Energy Network (LIEN) and the Energy Agreements Programme as part of the implementation of the NEEAP. Now in operation for over 18 years, the LIEN engages over 160 of the largest energy users in on-going relationships, including site visits, through seminars, networking clusters, and annual energy performance reporting. LIEN members recorded savings of 580GWh in 2012 which equates to a €40 million saving.

The Energy Agreements Programme comprises approximately half of the LIEN membership and supports large industry to implement an energy-management system through the new ISO 50001 standard. Consistent annual savings across the Network averages between 2% and 3% per annum. Cumulative savings of in excess of 28% have been achieved to date.

The SEAI also promote energy efficiency and associated cost reduction programmes through the small business support centre. During 2013, close to 300 organisations availed of the Advice Mentoring and Assessments (AMA) and/or EnergyMap training with a further 300 engaging in networking events, seminars, master classes and awards, collectively resulting in energy savings to SMEs of €2.6 million. Annual savings of over 10% are being generated by the participating businesses year on year.

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