7. ENERGY EFFICIENCY AND RESIDENTIAL HEATING

incentive was extended in 2017 to tenants of local authority properties who have the consent to conduct improvement work.

Ireland is also funding energy efficiency improvements on a community level under the

Better Energy Communities (BEC) and Sustainable Energy Communities (SEC) programmes. The BEC programme aims to encourage community-based partnerships to improve the thermal and electrical efficiency of the buildings stock and the implementation of more-challenging measures. The government allocated EUR 22.7 million to the BEC programme in 2017, with the aim to leverage additional private investment. Grant support for heat pumps is also available under the BEC programme, and the government has started a dialogue with participating communities towards phasing out all support for fossil fuel heating systems in 2019. The SEC programme helps to develop community partnerships from a small base to grow over time and to gradually pursue larger-scale energy projects. The SEC network contained 134 communities in 2017, with a total programme budget of EUR 0.5 million.

Commercial buildings stock and energy savings potential

There were approximately 109 000 commercial buildings in Ireland in 2015, of which more than 50% were constructed before 1992 (SEAI, 2015b). The estimated technical potential for energy efficiency upgrades in the commercial sector was estimated at 6 TWh in 2015, equivalent to over a third of the TFC in the sector (SEAI, 2015a). Significant energy savings can be obtained by basic upgrades. For example, in 2015, over 70% of commercial buildings did not yet use efficient lighting, and a significant number of retail outlets and restaurants had single-glazed windows. Using efficient lighting and double-glazed windows could result in savings of 1.8 TWh (DCCAE, 2017b).

Around two-thirds of commercial buildings use an electrical heating system; the share is over 80% for the retail sector. The commercial sector pays around EUR 0.21 per kilowatt hour (kWh), and reducing energy consumption would result in a large economic benefit (SEAI, 2015a). Installing heat pumps in commercial buildings could result in savings of 0.8 TWh, and the installation of more-efficient boilers could save another 0.39 GWh.

One of the challenges facing the sector is that a third of commercial undertakings rent their building space, and within this group only one-third of the tenants are the investment decision maker. The commercial sector is highly heterogeneous, with different business sizes and activities. Energy efficiency is frequently not a priority, especially among SMEs. Moreover, the provision of low-cost financing has proven not to be the main incentive for undertaking more complex upgrades with longer pay-back periods. Access to advice and project management support and raising awareness about the multiple benefits of energy efficiency are key enablers. Hence, the SEAI developed tailored policy approaches adapted to the specific needs of the sector.

Two pilot programmes were launched in 2017 to support energy efficiency upgrades in the commercial buildings sector. The SME pilot programme specifically offers advisory and financial support for lighting upgrades. The partnership initiative between the SEAI and the Agriculture and Food Development Authority (Teagasc) focuses on opportunities for dairy farms, which constitute a key part of Ireland’s agricultural sector.

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ENERGY SYSTEM TRANSFORMATION

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