Energy Policies of IEA Countries Ireland

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Energy Policies of IEA Countries Ireland Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/ termsandconditionsuseandcopyright/ Energy Policies of IEA Countries Ireland 2012 Review Energy Policies of IEA Countries Ireland Ireland has suffered a significant economic downturn, but remains committed to its ambitious energy targets to bring the country towards a low-carbon economy. Ireland’s location at the edge of the Atlantic Ocean ensures one of the best wind and ocean resources in Europe, and Ireland has set the ambitious target of producing 40% of its electricity from renewable sources by 2020. Ireland is highly dependent on imported oil and gas. While the push to develop renewable energies is commendable, this will result in an increased reliance on natural gas, as gas-fired power plants will be required to provide flexibility in electricity supply when wind power is unavailable. With two-thirds of Ireland’s electricity already coming from gas-fired generation, this poses concerns with regard to gas security, particularly as 93% of its gas supplies come from a single transit point in Scotland. In order to meet Ireland’s ambitious renewable targets and improve the island’s level of energy security, the country must successfully develop a range of gas and electricity infrastructure projects and market solutions while continuing to integrate its energy markets with regional neighbours. Ireland also has a pro-active energy efficiency policy, including a detailed National Energy Efficiency Action Plan outlining 90 measures and actions to be implemented in order to achieve the target of 20% energy savings in 2020. This review analyses the energy-policy challenges currently facing Ireland, and provides sectoral studies and recommendations for the further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future. -:HSTCQE=V\VY[[: (61 2012 03 1P1) 978-92-64-17146-6 €75 Energy Policies of IEA Countries Ireland 2012 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2012 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................................................... 9 Executive summary ...................................................................................................................... 9 Key recommendations ...............................................................................................................12 PART I POLICY ANALYSIS .....................................................................................................13 2. GENERAL ENERGY POLICY......................................................................................................................15 Overview ....................................................................................................................................15 Supply and demand ...................................................................................................................15 Institutions .................................................................................................................................18 Key policies.................................................................................................................................20 Taxation ......................................................................................................................................23 Critique .......................................................................................................................................23 Recommendations .....................................................................................................................24 3. CLIMATE CHANGE ..................................................................................................................................25 GHG emissions and targets ........................................................................................................25 CO2 emissions from fuel combustion .........................................................................................26 Institutions .................................................................................................................................29 Policies and measures ................................................................................................................29 Critique .......................................................................................................................................33 Recommendations .....................................................................................................................35 4. ENERGY EFFICIENCY ...............................................................................................................................37 Overview: final consumption by sector .....................................................................................37 Institutions .................................................................................................................................40 Policies and measures ................................................................................................................40 Critique .......................................................................................................................................49 Recommendations .....................................................................................................................52 3 Table of contents PART II SECTOR ANALYSIS ...................................................................................................53 5. ELECTRICITY ...........................................................................................................................................55 Supply and demand ...................................................................................................................55 Market structure ........................................................................................................................58 Generating capacity ...................................................................................................................66 Networks ....................................................................................................................................67 Supply and retail ........................................................................................................................74 Tariffs and prices ........................................................................................................................76 Critique .......................................................................................................................................80 Recommendations .....................................................................................................................86 6. RENEWABLE ENERGY .............................................................................................................................87 Supply and demand ...................................................................................................................87 Institutions .................................................................................................................................89
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