Dáil Éireann Debate, Wednesday - 20 March 2024
310. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide details on all energy performance contracts implemented or in development across the public sector; and if he will make a statement on the matter. [13207/24]
View answer313. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide an update on expanding the role of the NDFA to lead procurement of energy performance contracts (EPCs) for the public sector; and if he will make a statement on the matter. [13211/24]
View answerI propose to take Questions Nos. 310 and 313 together.
Energy Performance Contracts (EPCs) are a form of Public Private Partnership (PPP), but are significantly different from ‘traditional’ PPPs. Under an EPC, an Energy Service Company (ESCO) takes responsibility for undertaking the energy efficiency upgrade of a building. In return, an agreed proportion of the resulting energy bill savings accrue to the ESCO rather than to the building owner. EPCs are very complex instruments, combining elements of a rental, a service, a lease, a purchase and a loan agreement. For EPCs to be worthwhile, it would need to be established that delivery capacity exists to actually achieve the desired volume of retrofit, in addition to all other NDP funded investments. The responsibility for the management and delivery of any individual energy performance contracts would rest with the individual sponsoring Minister and Department in each case.
Two Dublin hospitals (The Mater Misericordiae and St. James's) undertook energy efficiency upgrades, completed in 2020 and 2021, and are implementing energy performance contracts (EPC). Fingal County Council is in the process of upgrading the energy performance of two of its large offices, Swords County Hall and Grove Road, via EPC.
SEAI, via its public sector Pathfinder programme, is expecting a number of local authority leisure centre upgrade projects to result in the award of energy performance contracts in 2024/2025. Codema (the Dublin Energy Agency) is leading on this in the mid-east Climate Action Regional Office (CARO) sub-region and for Dublin Local Authorities. The EPC bundles being proposed by Dublin Local Authorities also include non-leisure centre buildings that are suitable.
The Review of PPPs published in April 2021 as part of the National Development Plan 2021-30, noted that one potential solution to the complexity issue would be to expand the role of the NDFA to take on the task of procuring all EPCs on behalf of public sector entities.
However, further consideration of this suggestion is subject to the findings of the review my Department is currently undertaking of the budgetary treatment of EPCs. This review intends to explore whether EPCs are an attractive option to help deliver public sector retrofitting at this time and, if so, to identify what reforms may be necessary to support increased uptake of EPCs by public bodies. It is expected to be completed by the end of this year.
