7. ENERGY EFFICIENCY AND RESIDENTIAL HEATING

Improved building regulations have led to a reduction in energy demand in the residential and commercial sectors. However, fossil fuels account for most of the residential energy demand, and decarbonisation of heat in the residential sector is therefore an area that receives special attention in this chapter.

Figure 7.1 Energy demand and drivers, 1990-2017

Ireland’s final energy consumption has decreased over the past decade, despite strong GDP and population growth.

Notes: GDP in 2010 USD (United States dollars) at purchasing power parity (PPP). Data are provisional for 2017. Data on TFC unavailable for 2017. For a discussion of the methodological issues with measuring Ireland’s economic growth see the chapter on “General energy policy”.

Source: IEA (2018), World Energy Balances 2018, www.iea.org/statistics/.

Energy consumption and intensity

Energy intensity per capita and GDP

Energy intensity can be measured as energy consumption (TFC) per capita and per GDP. In 2016, Ireland’s TFC per capita was 2.3 tonnes of oil equivalent (toe), which placed Ireland around the median among IEA countries. Energy intensity per unit of GDP expressed in purchasing power parity was 37 toe per million United States dollars (USD) (Figure 7.2), which was the lowest among IEA member countries. In terms of modified total domestic demand, Ireland’s energy intensity was 58 toe/USD million, which was the seventh lowest in the IEA and below the IEA average.

A country’s energy intensity can be explained by the structure of the economy. Ireland’s economy has shifted in the direction of high-value-added sectors such as pharmaceuticals, electronics and services. These growing sectors are not highly energy intensive relative to traditional industries such as steel production. Changes in the fuel mix of the final consuming sectors can also contribute to a decline of energy intensity. Fuel consumption in Ireland’s industry sector has shifted from oil to more-efficient use of electricity and natural gas. Energy intensity will continue to show a decreasing trend if the economy becomes increasingly dominated by high-value-added, low-energy- consuming sectors. Further electrification of the TFC can also improve Ireland’s energy intensity. Electricity end-use technologies are typically more energy efficient in providing the same service per unit of final energy than other technologies. This could then lead to an overall reduced demand for energy.

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