The 2023 recast Energy Efficiency Directive (EED) which will significantly increase Ireland’s cumulative end use energy savings target. How Ireland will achieve these obligations is currently under consideration and as the efficiency targets are cumulative, new measures must be prioritised and delivered as a matter of urgency if Ireland is to comply. To assist in this consideration process, the EAI commissioned Ricardo Economics, an independent consultant, to research alternative energy efficiency measures that could be implemented in Ireland to attain this higher energy savings target whilst benefiting our homes, businesses, and the environment.
EAI has created a summary of the report produced by Ricardo Economics. This report highlights that there exists a 26,000 GWh gap between the existing planned energy efficiency measures for Ireland and the ambition of the recast EED. Ricardo Economics identified several energy efficiency measures currently in place in Ireland that may not be fully counted towards Ireland’s Art. 8 obligations. It is critical that all such measures should be fully counted towards Ireland’s recast EED savings where possible.
Additionally, Ricardo Economics completed a comprehensive analysis of energy efficiency measures (more broadly known as “alternative measures” under the EED) in place in six other comparator EU countries. From a longlist of over 100 alternative measures, a shortlist of measures most applicable to Ireland are outlined and assessed further in their full report. This report also illustrates that the Energy Efficiency Obligation Scheme (EEOS) in Ireland has delivered significant savings in energy to date. From 2014 to 2020 the EEOS accounted for 60% of the total energy efficiency savings for that compliance period. The report notes however, that there exists fundamental challenges to delivering energy efficiency targets within this scheme especially in the next compliance period.
Given the current challenges within EEOS being experienced by Obligated Parties, a decision to spread the increased ambition of the EED onto an expanded EEOS should not be the default choice. From the analysis of EAI members, transferring this gap onto an expanded EEOS will exacerbate the existing challenges within EEOS and could result in a financial cost of up to 4.6 billion euro on obligated parties. There is also the likelihood that these costs could be passed on to end customers whether caused by increased costs associated with retrofitting or financial buyouts. To avoid this scenario, the EAI recommends to SEAI and DECC to:
- Conduct a comprehensive review of all existing energy efficiency measures by state agencies and ensure that they are fully captured under Art. 8 as alternative measures
- Investigate alternative measures that have been implemented in other EU countries as shortlisted in the full Ricardo Economics report
- Establish an extensive range of alternative measures for the next compliance period (2026-2030) of the Recast EED
- Avoid an expanded EEOS scheme to deliver these targets and such a move should not be the default choice for the expanded recast EED.
Failure to implement these recommendations will result in increased costs on obligated parties with the potential risk of such costs being passed onto customer electricity bills. Click the link below to view the EAI Summary Report:
20240710 Bridging the Gap – Achieving Ireland’s Art 8 EED Targets