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member states John FitzGerald argues that ambition must be matched by action
Decarbonising Ireland: The energy challenge
John FitzGerald, Chair of the Climate Change Advisory Council, argues that the increased ambition to tackle climate change must be matched by implementation of new measures to drive decarbonisation.
Outlining the failure to date to significantly reduce carbon emissions in Ireland, FitzGerald points to a coupling between the levels of national income and carbon dioxide emissions that has existed since the 1960s. The year 2000 marked a period of decoupling in this regard but by 2013 the economic recovery marked a rise in emissions once more.
FitzGerald points to data for 2018 which shows that the total emissions of greenhouse gases remained largely unchanged from 2017, but explains that the absence of a significant rise was largely driven by a 10 per cent reduction in the electricity sector due to reduced hours at Moneypoint power station, which masked significant increases in emissions in the residential, agriculture and transport sectors.
The analysis, says FitzGerald, is that not only have behaviours not changed significantly but that Ireland hasn’t even turned the corner in getting emissions to fall.
Outlining that Ireland will fail to meet the 20 per cent reduction of greenhouse gases target for 2020, despite an estimated 7 per cent reduction in emissions driven by the Covid-19 pandemic, FitzGerald points to a gap of between 12.6 to 13.4 Mt CO2eq on the Effort Sharing Decision (ESD) target of 337.9 Mt CO2eq.
“The reductions due to Covid-19 might bring that gap below 10 Mt CO2eq but we will still not meet our target and it’s important to remember that this reduction will be temporary. In this context, it’s important that investment to stimulate economic recovery must be ‘green’,” he states. The Climate Action Plan 2019, if implemented fully, significantly changes the trajectory on emissions, explains FitzGerald but will still see Ireland fall short of the EU’s annual targets, meaning that Ireland will need to use the flexibilities allowed for on terms of land use. This, the Chair says, is more optimal than the other flexibility allowed for, the Emissions Trading Scheme (ETS), which would allow Ireland to buy its way out of any gap to target but would not offer a long-term solution. “If we don’t meet even the current target for 2030 then we certainly won’t meet net zero carbon for 2050,” FitzGerald states.
The challenge of reducing greenhouse gas emissions in Ireland comes in the face of increased ambitions both from the EU and within the new Programme for Government (PfG) for 2030.
FitzGerald admits that not all the additional measures in the new PfG have been fully analysed by the Climate Change Advisory Council but welcomes the “step up in ambition”, while also recognising the need for clarity on the new actions envisaged. “Additional action will be essential,” he argues.
The Chairman believes that the EU’s 2030 Climate Target Plan announced in September, which sets out an ambition of a 55 per cent greenhouse gas emission reduction across the EU by 2030 is a “potential game-changer” in terms of Ireland’s journey.
“The EU is upping their ambition and so we all have to up ours,” he says. FitzGerald believes that the likelihood that the EU are going to shift a lot of carbon dioxide emissions to the ETS would be helpful for Ireland and would change the policy challenge, however, he admits that how the EU policy will translate remains to be seen.
Setting out that the national position is still to see a reduction of 80 per cent of CO2 by 2050, FitzGerald says that the Climate Change Advisory Council support the proposed objective of the PfG to reach net zero emissions by 2050, but adds: “We need additional policy measures to the Climate Action Plan for a post-2030 world. The current planned policies are not enough to get us to that 2050 target.”
The Chair says that the first task must be to implement the measures of the Climate Action Plan. At the end of September, the Climate Change Advisory Council published its annual review, within which it cautioned that some of the measures within the Climate Action Plan may not work. “So, already there is a need for additional measures if we are to meet our existing 2030 target and of course, the new ambition will require further measures. We need to change behaviour in all sectors and not just rely on energy to do all of the work,” he adds.
Carbon tax
FitzGerald has long advocated for a steeper rise in the carbon tax, highlighting that behavioural change will not occur until the profitability of change is recognised. The Climate Change Advisory Council recommended a €35 per tonne tax for Projected limits
Cumulative (2021-2030)
With land use flexibility (26.8)
With land use and ETS Flexibility (18.8)
Target Mt CO2eq
378.3
405.1
423.9
Budget 2021 (Budget 2021 saw a rise in the carbon tax from €26 to €33.50 per tonne), rising to at least €100 per tonne by 2030.
However, the Chair believes that with the hindsight of the pandemic causing a reduction in fossil fuel prices, the need for a higher carbon tax has never been more pertinent.
“The lower fuel prices since the Budget 2020 mean that, even with the higher carbon tax, all of our energy is going to be substantially cheaper. The Department has already showed, when producing the Climate Action Plan, that low energy prices lead to much bigger emissions and so we have a much bigger hill to climb because of those low energy prices.”
Those opposed to the rise in carbon tax often cite the potential impact of those in fuel poverty but FitzGerald believes that a solution lies in using some of the revenue raised through the carbon tax to avoid regressive impacts on lowincome households. The Chair points to research which suggests the use of one third of revenue from a carbon tax to compensate those on low incomes would not only insulate them against the problem but actually render them financially better off.
“Using the revenue to protect those on low incomes so that they don’t lose out as a result of an increased carbon tax is essential,” he states.
Electricity
Turning to the issues which he believes must be addressed by additional measures in key sectors, the Chair says that in terms of electricity, the Government needs to accelerate the Projected emissions
396.2
Projected Distance to target
-17.9
8.9
27.7
closure of coal-fired generation and finally shut down peat-fired generation. To this end, the Climate Change Advisory Council has suggested the introduction of a carbon price floor to support renewable energy and phase out fossil fuels, however, FitzGerald believes that the new EU proposals may render this step unnecessary. “We need to it to be profitable to shut down coal and peat generation or at least make it costly to keep them open,” he adds.
The Chair recognises the potential in new opportunities, such as offshore wind development, which he says may be important not just for Ireland but for the rest of Europe. However, he believes that investment is needed in necessary infrastructure to support the goals on renewable electricity and the roll out of electrification of transport and heating. FitzGerald emphasises the need for the initial emphasis to be in non-urban areas, highlighting these as areas where emission savings would be greatest.
“The CRU in their price review need to ensure that the distribution network is upgraded so that you can roll out decarbonisation quicker in rural areas than in urban ones,” he says.
Other changes will also be required, he explains, pointing to the need for greater level of interconnection, work already underway on green hydrogen and adding: “technological solutions will help us on our way in electricity.”
Transport
Turning to transport, FitzGerald outlines that the sector is 20 per cent of Ireland’s total emissions and this is a
4
Greenhouse gas emissions eq) 2 (Mt CO
50
48
46 Emissions Projections
44
42
40
38
36 Historical Emissions
34
30 2005 2010 2015 2020 2025 2030
Reported Emissions
Projection "with additional measures" Projection "with existing measures"
Efort Sharing Regulation targets to 2030
Data sources: EPA (2020) National Emissions Inventory and Ireland’s Greenhouse Gas Emissions Projections 2019–2040.
figure that is increasing. The Climate Change Advisory Council has voiced concerns that the current target for EV take up is going to be difficult to achieve and FitzGerald says that given the estimated expense to government, taxation and subsidy will be required and that it’s important that changes to the tax system begin now to encourage people to buy electric cars. Again, the Chair emphasises that priority should be given to those areas of high usage, namely rural areas. “The infrastructure, including the electricity, needs to prioritise where big money will be saved in tackling areas of longer commutes,” he adds.
However, EVs alone will not offer a solution to the emission challenge in transport. “We need action on other forms of transport as well. The Climate Action Plan didn’t really deal with HGVs and LGVs but we need to look at these areas in case we don’t meet our target on EVs.” However, FitzGerald admits that the EV challenge may be aided by the new EU proposals which will likely see the EU’s car industry produce EVs “cheaper and earlier”.
Finally, on transport he calls the better planned development, citing the National Planning Framework as essential to facilitate public transport and active travel modes. “We’re set to build around another one million homes between now and 2050 and we must ensure that we put them in the right place where people have access to active travel modes. Investing in public transport is essential and BusConnects is a start but there is a need for further investment. The benefits of investment today will come in reduced emissions after 2030 but if we don’t do it now because it won’t effect our 2030 figure, then we won’t meet the 2050 goal.”
Built environment
On the built environment, FitzGerald acknowledges that the major deep retrofit of homes by 2030 is a challenging ambition. Highlighting that the retrofit of around 40,000 homes requires the same level of resources as that to build 5,000-10,000 new dwellings, he recognises that competition will exist between the Government’s ambition to build more homes and the desire to retrofit existing properties.
The Chair suggests that as well as increasing the capability of the building and construction sector, retrofitting efforts should be targeted at areas of most benefit and where the greatest level of emissions can be reduced: vulnerable households and those homes currently heated by coal, peat or oil. However: “High rates of retrofit cannot be achieved without unlocking low-cost finance for households and SMEs,” he adds.
Additionally, highlighting work already underway in the Department, FitzGerald points to the benefits of aggregation and the efficient management of this. “Finding ways to do this efficiently, which makes in easier will make a significant difference. Making it profitable alone will not suffice, it must be easy,” he states.
Concluding, FitzGerald restates his belief that increased ambition to tackle climate change must be matched by the implementation of new measures to drive decarbonisation. “I want to see the announcement of things happening on the ground,” he stresses.
“Integrating a just transition into climate policy can add depth and assure public support for action. If policies are seen to be unfair then they are going to be very difficult to implement. Ensuring fairness is going to be an important task for policy for the future.”
Heat in the commercial and public sectors
Emissions from heat use in the commercial and public sectors of 11 per cent and growing, are significant, explains Brady, adding that following on from the increased climate action ambition of the Programme for Government, sectoral targets and annual updates of the Climate Action Plan will be key drivers of emission reduction in these areas.
Brady outlines that while much focus is placed on the ‘big’ three sectors of electricity, transport and residential in regards to emissions from heating, the combined sub sectors of public services, commercial services and manufacturing make up 20 per cent of Ireland’s annual total final energy consumption.
On emissions, the three sub-sectors have followed an energy-wide trend of decline from 2005 to 2010, followed by steady rates to 2014, when levels began to rise again. Brady points to doubling of gas use share between the period 2005 to 2018, going from around 27 per cent to around 53 per cent, mainly at the expense of oil.
Renewable energy use in the three subsectors is around 10 per cent, a surprising figure when compared with the residential heat and transport sectors, which have levels of around 3 per cent renewable energy. The majority of renewable energy in the commercial and public sector is biomass and some renewable waste and biogas, explains Brady.
Compared to 2005, energy use for heat Kevin Brady, Principal Officer leading the Business Energy and Gas Policy division at the Department of Environment, Climate and Communications, addressed Energy Ireland 2020 on changes to commercial and public sector heat being driven by the Programme for Government’s decarbonisation ambitions.
in the commercial and public sectors was down 11 per cent and emissions reduced 17 per cent by 2018. However, since 2014, energy use has increased by some 16 per cent and emissions are up 13 per cent, highlighting a trend of strong and steady growth in recent years.
The new commitments of the Programme for Government outline an average 7 per cent per annum reduction in overall greenhouse gas emissions from 2021 to 2030 (a 51 per cent reduction over the decade) and to achieving net zero emissions by 2050.
Brady states that the two distinct objectives associated with this commitment are the need for “an acceleration now” and a consideration for “all actions to be in keeping with net zero carbon by 2050”.
“By setting in stone, in government policy, to achieve net zero emissions by 2050, the more incremental elements that we are doing now need to change,” he adds.
Brady says that the sectoral emission targets and annual Climate Action Plan update will be key drivers for policy formation. “Following on from the Programme for Government, our next step is to review our existing policies and develop new policies to meet the new commitments. That includes reviewing all of our existing measures to be in keeping with a sustainable pathway to 2050.”
Brady outlines that the Department’s policy options of: energy efficiency first; electrification; renewable energy; district heating; and the decarbonisation of gas remain the same but the policy types, which have historically focussed on behaviour and incentives, are likely to shift to include greater levels of regulation and taxation.
As well as reviewing existing supports to align with the Programme for Government, the Department is planning an expansion of supports on the back of Budget 2021 and working to deliver a district heating policy framework. Additionally, a major piece of work being undertaken by Brady’s division is around how renewable gas can be supported, including assessing the role of green hydrogen going forward. Brady also points to the potential creation of a renewable energy obligation in the heat sector, pointing the absence of a socialisation of cost when compared to the electricity and transport sectors.
Concluding, Brady says: “The significant commitments in the Programme for Government will change everything we do and how we do it. The sectoral targets will be the key drivers of policy formation going forward and that’s where you’ll see the changes and the differentials.
“Even though we’re going to talk a lot more about emissions reduction, energy efficiency and renewable energy in the sector will continue to be key enablers but they will be enablers of greenhouse gas emission reduction.”
ESB: Powering through the pandemic
As society adapts to the realities of the Covid-19 pandemic, the shift towards a low-carbon energy system has assumed even greater resonance. eolas Magazine speaks with ESB’s Head of Corporate and Regulatory Affairs, Peter O’Shea, about the leading utility’s response to the pandemic, through the lens of colleagues, customers and communities.
Almost overnight, ESB transformed from an on-site and in-office business to having almost 4,500 of its 6,100 personnel working remotely. The transition to online business was relatively seamless, outlines O’Shea.
“Being a 93-year-old electricity company, planning has been at the core of ESB for many years.” he says, adding: “Our pandemic plan has been in place since around 2005 when SARS-CoV emerged. In fact, only 18 months ago, we had a test of our pandemic plan and garnered significant learning which assisted ESB in its initial planning for Covid-19, back in early February.”
Initial response
In the first instance, the company’s focus was on logistics and ensuring that the business continued to operate. ESB established three major targets for itself. The first was to ensure the safety of customers and employees. The second was to maintain essential services for customers. The third was seeking to assist customers facing financial difficulties.
“As we moved further into the pandemic and as government plans emerged, ESB reshaped its own internal plans. Through our generation, our networks and our supply activities, we play a critical role in keeping the lights on for domestic and business customers, which in turn supports the wider national economy. Of course, this is even more important with so many of our customers working from home. Right across ESB, we had to reshape our operations to enable this,” the Head of Corporate and Regulatory Affairs outlines.
Corporate and social responsibility
ESB works with a range of charities each year through its Energy for Generations Fund and quickly understood the difficulties its charity partners were experiencing during the pandemic. In response, the company significantly increased the size of the fund in the second quarter, bringing the total annual contribution to nearly €1.5 million. This helped to support key longterm partners, including Early Learning Initiative, Jigsaw, Pieta, Aware and Camara Education Ireland.
Meanwhile, Electric Ireland, ESB’s supply business, is the title sponsor of Pieta House’s Darkness into Light initiative. In the context of the public health response to the pandemic, it became very clear that mobilising significant numbers of people in communities across Ireland to walk together into the daylight was not going to be viable. As an alternative, ESB worked closely with Pieta to develop the Sunrise appeal, helping it to raise over €4 million to continue the vital work it undertakes.
ESB’s corporate and social responsibility (CSR) programme has always been more comprehensive than just the provision of finance. One of the initiatives that O’Shea is most proud of is linked to the closure of schools in March 2020.
“In collaboration with Camara Education Ireland and Trinity Access, ESB supported the Tech2Students campaign to help low income students access education by bridging the digital divide. ESB Networks provided its yellow van fleet and volunteers stepped up from across ESB to collect 1,300 disused laptops, which were then reconditioned and distributed among disadvantaged communities and areas with low rates of progression to higher education. It was a practical step which will have had a positive impact on the lives of the students,” the Head of Corporate and Regulatory Affairs emphasises.
Likewise, under ESB’s broader Kindness Matters initiative, employees are also encouraged to volunteer their time. “In many respects, this type of response is in the DNA of ESB. Customers are the lifeblood of the ESB, and the
communities in which they live and work are the same communities that my colleagues and I belong to. ESB has always been right at the heart of communities in Ireland and that’s why, in the context of Covid-19, it will continue to focus on customers, colleagues and communities.” he adds.
Continued delivery
Today, six months on since the introduction of public health restrictions, O’Shea is still working from his home office, as are the majority of people at ESB. “Now it’s about redoubling our efforts to deliver the work we said we would deliver,” he says, adding: “The electricity industry is changing at a pace which is beyond anything we had previously considered. This is driven by the urgent need to address climate change”.
The ESB report, Dimension of a Solution – Ireland’s Low Carbon Future, published two years ago promoted the dual strategy of decarbonising the electricity system and using that clean electricity supply to electrify the heat and transport sectors. That way, electricity which currently accounts for around 15 per cent of Ireland’s emissions could help address the emissions of the heat and transport sectors which together account for around 40 per cent of Ireland’s emissions.
“ESB is at the forefront of that change”, says O’Shea. “Our Brighter Future strategy is fully aligned with our purpose to lead the transition to a low-carbon future, powered by clean electricity.”
Generating electricity is probably the most visible component of that strategy. However, delivering the network capability to distribute renewable energy from all generators is also a priority. The period from 2011 to 2019 saw ESB Networks, the distribution system operator (DSO), double the installed capacity of renewable generation connected to network every three years. The period ahead will see significant investments across all voltage levels to enable further connections of large-scale renewables and the increased penetration of electric vehicles, electric heat pumps and microgeneration.
ESB Networks is also continuing with the installation of smart meters and, despite having to adjust its activities in light of Covid-19 protocols, is currently on target to deliver 250,000 new meters by year-end.
This investment will enable all suppliers, including Electric Ireland, to focus on engaging different cohorts of customers
ESB proudly supporting the Tech2 Students Initiative by delivering laptops to leaving cert students in association with Trinity access and Camara Ireland. Laptops were delivered to students who had no access to Technology.
and providing new types of services as and when the new smart agenda gets underway,” O’Shea indicates.
2030
Each facet of ESB’s operation is pursued in the context of national and European policy. Strategically, the utility is looking ahead to 2030 and working within the framework of the Programme for Government’s ambitious target of a 7 per cent reduction in emissions per annum. This represents a significant increase even on the Climate Action Plan.
Among other low carbon investments, ESB is focusing on building its renewable portfolio, both onshore and offshore, and is upgrading its public EV charging infrastructure in Ireland, with support from the Government’s Climate Action Fund.
ESB Networks meanwhile is seeking to invest in smart solutions and system reinforcement to enable delivery of the Programme for Government and has had significant engagement with the Commission for Regulation of Utilities (CRU) regarding these investments as part of the upcoming price review PR5.
“The fundamental importance of this is that PR5 covers the years 2021 to 2025, half of the period to the 2030 Climate Action Plan timeline. It’s an important engagement for ESB Networks and the Regulator to get right on behalf of Irish customers to ensure that the distribution system has the capacity and capability to accommodate new renewable generation that ESB and other generators are developing, and address the future needs of customers as they adopt new low carbon technologies, such as electric vehicles, heat pumps and microgeneration,” O’Shea states.
Brighter Future
In the here and now, ESB’s priority is navigating the Covid-19 pandemic. However, the Brighter Future strategy has engendered a sense of purpose and anchored the utility, ensuring that all its activities are aligned, from core business to CSR.
Meanwhile, in the medium- to long-term, and alongside the Government and the EU, ESB shares an ambition to ensure the recovery of the economy on a basis that encourages sustainability and investment in renewable electricity, the electrification of heat and the electrification of transport.
“Ensuring sufficient investment which enables the economy to pivot is a priority in the years to come. This doesn’t mean that we seek to recreate the electricity sector as it was pre-Covid19, rather let’s recreate it on a more sustainable basis.
“That means more renewable electricity generation, whether it be wind, solar or bioenergy; it means smarter and more efficient networks to deliver that electricity to customers; and it means empowering customers to make choices to lock out carbon because the network is capable of delivering the electricity required. That’s what a sustainable future means to ESB,” O’Shea concludes.
T: +353 1 702 7308 W: www.esb.ie
