FREED Market Report WP 3: D3.1.1/D3.1.2 November 2016 Western Development Commission Contents Contents Contents 1 Introduction 3 Overview 3 Purpose of Report 3 Market Report 4 2 Ireland: Western Development Commission & Limerick Institute of Technology 5 Energy Profile of the Region 6 3 Oulu Region Finland: University of Oulu 99 Energy Profile of the Region 9 4 Northern Ireland: South West College 122 Energy Profile of the Region 12 5 The Highland and Islands of Scotland: Green Angel Syndicate 1415 Energy Profile of the Region 14 6 Norway: Narvik Science Park 1819 Energy Profile of the Region 18 FREED : Funding Resources for Innovation in Energy Enterprise Development November 2016 1 About FREED FREED (Funding Resources for Innovation in Energy Enterprise Development) is a three year project funded under Interreg’s Northern Periphery and Arctic Programme. The Project will provide SME’s in the programme area with the support network required to introduce and develop energy innovations which would otherwise be unavailable to them. FREED’s five step process will: g Carry out a needs analysis of the types of energy innovations required in the partner region g Initiate a tender process to generate the necessary technology innovations g Partner R&D institutions with SME’s from the region g Develop business plans to assist the SME’s in delivering the innovation in the region g Provide a financing service that utilises private investment funds to aid the development of the innovations The project, which is led by the University of Oulu in Finland, is a collaborative partnership involving private investment firms, R&D institutions, colleges of education and public bodies from Scotland, Northern Ireland, Norway, The United Kingdom, Germany and Ireland. Disclaimer: All reasonable measures have been taken to ensure the quality, reliability, and accuracy of the information in this report. This report is intended to provide information and general guidance only. If you are seeking advice on any matters relating to information on this report, you should contact the Western Development Commission with your specific query or seek advice from a qualified professional expert. 2 FREED Market Report WP3: D 3.1.1/D 3.1.2 Introduction 1 Introduction Overview Purpose of report Work Package 3 Activity 3.1 and 3.2.: This work This report summarises the FREED partner package aim is to engage with stakeholders and contributions to WP3 Activity 3.1 and 3.2 in a single undertake a regional analysis for all partner ‘Market Report’ document. The regions associated regions energy usage, how this is defined by with this market analysis and report are in the existing innovation agencies and programmes, Northern Periphery Programme Area. Specifically regional or local development agencies, how this the regions examined are: divides between different sectors, the different Specifically the regions examined are: characteristics of usage, the barriers and problems they face. The sectors to be considered might be g Ireland public buildings, hospitals, schools, retail, light g Finland industrial, residential. The partners in the NPA g Northern Ireland GREBE project will also be consulted for their views, g The Highland and Islands of Scotland so that both projects can be coordinated to increase g Norway potential synergies and avoid overlap. The FREED project partners are: g University of Oulu, Finland (UOulu) Lead Partner g Western Development Commission, NORWAY FINLAND Ireland (WDC) g South West College, Tyrone (SWC) g Green Angel Syndicate, Scotland (GAS) SCOTLAND g Narvik Science Park, Norway (NSP) NORTHERN IRELAND g Limerick Institute of Technology, Ireland (LIT) IRELAND g Europäisches Institut für Innovation GERMANY (European Institute for Innovation, Germany) g Sustainable Venture Development Partners Ltd (Associate Partner) NPA programme area and participating countries in the FREED project. FREED : Funding Resources for Innovation in Energy Enterprise Development November 2016 3 Market Report 4 FREED Market Report WP3: D 3.1.1/D 3.1.2 Ireland: Western Development Commission & Limerick Institute of Technology Ireland: Western Development Commission 2 & Limerick Institute of Technology The Western Development Commission (WDC) and Limerick Institute of Technology (LIT) consulted with the organisations and stakeholders listed below: g Local Authorities in Mayo, Sligo, Leitrim, g Claremorris Energy Agency, Tipperary Energy Donegal, Clare and Galway and Tipperary Agency g Galway Energy Agency, Mayo Energy Agency, g Chambers of Commerce representing the The Sustainable Energy Authority of Ireland retail and business community, Questum (SEAI), Tipperary Energy Agency, Kerry Energy Acceleration Centre Clonmel, LIDL, Dunnes Agency, Energy Cork and Aramark Stores and IDA g Enterprise Ireland, Local Enterprise Offices, g Facilities managers in hospitals (including WDC Investment Fund, and Udaras na South Tipperary General Hospital, Nenagh Gaeltachta General Hospital) & leisure centres (Active g Sligo Institute of Technology (IT Sligo) , Galway Ennis Leisure Complex) Mayo Institute of Technology (GMIT) , The g Clonmel Wastewater Treatment Plant National University of Ireland Galway (NUIG), g Clare County Council Offices Ennis and Ennis Letterkenny Institute of Technology (LYIT), Museum Cork Institute of Technology (CIT), Limerick g The Marine Institute, The Office of Public Institute of Technology (LIT), Tralee Institute Works, GREBE Project, SECURE Project, of Technology, Mary Immaculate College Environmental Protection Agency. Limerick and additional second level colleges in the region FREED : Funding Resources for Innovation in Energy Enterprise Development November 2016 5 Ireland: Western Development Commission & Limerick Institute of Technology Energy Profile of the Region Table 1: Ireland’s total energy requirement per sector – taken from the SEAI report ‘Energy in Ireland Key Statistics 2014’ Total Primary Energy Requirement (ktoe) Shares% 1990 2000 2005 2010 2011 2012 2013 1990 2013 Industry 2,524 3,768 3,608 3,264 3,157 3,196 3,142 26.8 23.7 Transport 2,054 4,161 5,179 4,660 4,457 4,204 4,326 21.8 32.7 Residential 2,995 3,522 3,920 4,239 3,660 3,610 3,552 31.8 26.8 Services 1,504 2,228 2,641 2,268 1,974 2,009 1,923 16.0 14.5 Agri/Fishery 331 409 421 333 315 311 279 3.5 2.3 Sources of Energy in Ireland The main energy suppliers in Ireland are Bord Gáis g Electricity generated from renewable Energy, Electric Ireland, Energia, Flogas Natural energy (normalised) reached 20.9% of gross Gas, SSE Airtricity, Panda Power, Pinergy and electricity consumption (RES-E) in 2013. PrePayPower. Ireland’s target for 2020 is 40%. g Renewable energy contribution to thermal The following key facts on the energy sector in energy (RES-H) was 5.7% in 2013. Ireland are taken directly from the SEAI report g Ireland’s RES-H target for 2020 is 12%. Energy in Ireland Key Statistics 2014 and relate to g Renewable energy in transport (RES-T) the whole country. reached 2.8% in 2012, or 4.9% when g The estimated population of Ireland in 2011 weightings are applied to biofuels from waste was 4.593 million persons (CSO). and second generation biofuels. Ireland’s g Gross domestic product in Ireland in 2013 was target for 2020 is 10%. €174,791m in current prices (CSO). g In 2013, renewable energy grew by 6.9% to g Ireland’s economy grew by 0.2% in 2013. 911 ktoe, representing 7.8% of Ireland’s gross Primary energy demand fell by 1.2% to 13.3 final energy use. Ireland’s target under the EU Renewable Energy Directive is to achieve a Mtoe and energy-related CO2 emissions decreased by 3.8% to 35 Mt. 16% renewable energy penetration by 2020. g g Energy-related CO2 emissions in 2013 in Energy-related CO2 emissions in 2013 were 17% above 1990 levels. sectors not included in EU emissions trading (non-ETS) were 20% below 2005 levels. g Since 2007, Ireland’s economy has contracted Ireland’s target is to achieve a 20% reduction by 6.7%, reaching 2005/2006 levels in 2013. in total non-ETS GHG emissions by 2020. Energy demand has fallen by 18% to 1999 g The average specific emissions from new levels and associated CO2 emissions have fallen by 22% to 1997 levels. passenger cars purchased in Ireland in 2013 were 120.9 g CO /km, down from 164g CO / g Ireland’s import dependence in 2013 was 2 2 km in 2007. This has already met the target 89%, down from a peak of 90% in 2006 but up of 130g CO /km set by the EU Directive from the 85% recorded in 2012. 2 (443/2009) for 2015. 6 FREED Market Report WP3: D 3.1.1/D 3.1.2 Ireland: Western Development Commission & Limerick Institute of Technology The Irish Government has set national targets for heat is also quite low for similar reasons and the the provision of renewable energy which include: recent collapse in oil prices has created a dramatic slow-down in investment in large-scale wind farms. g 16% of energy consumption to come from Solar thermal is quite prevalent in new homes as renewable sources by 2020 it is seen as the most expedient way of meeting g 42.5% of electricity consumption to come the renewables requirement (10 kwh/m2/yr) in the from renewable sources by 2020 current building regulations (2011), however, there g 12% of energy consumption to come from has been virtually no new build since the property renewable sources for heating and cooling market collapsed in 2010 with the emphasis to date g 10% of final energy from renewable sources being on shallow retrofit. Building fabric of BMS consumed in transport by 2020. upgrade remains the most cost effective method of increasing energy efficiency for most properties. The lack of incentive to invest in micro-renewables is caused primarily by a lack of feed-in-tariffs and not helped by a scarcity of energy storage options (on macro and micro levels).