Energy in Ireland 1990

Energy in Ireland 1990 – 2014 2015 Report 1 Energy in Ireland 1990 – 2014 2015 Report Report prepared by Martin Howley, Mary Holland, Dr Denis Dineen and Dr Eimear Cotter Energy Policy Statistical Support Unit November 2015 2 ENERGY POLICY STATISTICAL SUPPORT UNIT Sustainable Energy Authority of Ireland The Sustainable Energy Authority of Ireland’s (SEAI) mission is to play a leading role in transforming Ireland into a society based on sustainable energy structures, technologies and practices. To fulfil this mission SEAI aims to provide well-timed and informed advice to Government, and deliver a range of programmes efficiently and effectively, while engaging and motivating a wide range of stakeholders, and showing continuing flexibility and innovation in all activities. SEAI’s actions will help advance Ireland to the vanguard of the global green technology movement, so that Ireland is recognised as a pioneer in the move to decarbonised energy systems. Energy Policy Statistical Support Unit (EPSSU) SEAI has a lead role in developing and maintaining comprehensive national and sectoral statistics for energy production, transformation and end-use. This data is a vital input in meeting international reporting obligations, for advising policymakers and informing investment decisions. Based in Cork, EPSSU is SEAI’s specialist statistics team. Its core functions are to: •• Collect, process and publish energy statistics to support policy analysis and development in line with national needs and international obligations; •• Conduct statistical and economic analyses of energy services sectors and sustainable energy options; •• Contribute to the development and promulgation of appropriate sustainability indicators. Acknowledgements SEAI gratefully acknowledges the cooperation of the all the organisations, agencies, energy suppliers and distributors that provided data and responded to questionnaires throughout the year. © Sustainable Energy Authority of Ireland Reproduction of the contents is permissible provided the source is acknowledged. 3 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Foreword It is timely that this report is published in the week preceding COP21 in Paris, the 21st Conference of Parties under the UN Framework Convention on Climate Change (UNFCCC). The conference will bring together more than 190 countries in a bid to reach a legally binding agreement on reducing global carbon emissions. The report provides insights and shows us where we are doing well in developing sustainable energy alternatives to fossil fuels, which is to be warmly welcomed ahead of the negotiations. Following many difficult years it is good to see the economy recovering. So far, this growth has been achieved with an overall modest reduction in energy use, demonstrating the impact of energy efficiency actions across the economy. However there are some cautionary indicators within these figures which show increasing energy use in industry and transport, albeit below the sectoral growth rates themselves. Dr Brian Motherway It is encouraging to see that renewable energy use continued to grow in 2014 pushing us over the half way mark towards our 2020 target. The renewables contribution to electricity generation increased again and as a result the carbon content of electricity generation hit a record low in 2014, half the level in 1990. In fact without renewables our power generation emissions would have been 23% higher. We must be vigilant to maintain momentum in reducing the overall energy intensity of our economy, particularly in the heat and transport sectors. The Government’s Energy White Paper will guide Ireland through the energy transition between now and 2030 and bring to the fore the important contribution that a sustainable energy policy can make to facilitating economic growth and job creation while also reducing environmental impacts. The transition to a sustainable, decarbonised energy system requires the participation of all citizens and communities in both decision making and action. It is vital that we have an informed debate about the choices for Ireland to lead us away from our dependence on imported, polluting fossil fuels. SEAI is committed to the provision of robust and transparent data, such as that contained in this report, to ensure that the policy formation, decision-making and our energy transition are evidence-based. Dr Brian Motherway, Chief Executive, Sustainable Energy Authority of Ireland 4 ENERGY POLICY STATISTICAL SUPPORT UNIT Highlights Highlights – the year 2014 •• In 2014, the economy grew with GDP increasing by 5.2% while overall energy use fell by 0.5%. •• Energy-related CO2 emissions decreased by 1.2% in 2014 and now stand at 17% above 1990 levels. When compared with 2005 energy-related CO2 emissions have fallen by 23%. •• Consumption of all fuels fell in 2014 with the exception of peat, renewables and non-renewable wastes. •• Ireland’s import dependency decreased to 85% in 2014 (from 89% in 2013). The cost of all energy imports to Ireland was approximately €5.7 billion, down from €6.5 billion (revised) in 2013 due mainly to falling oil and, to a lesser extent, gas import prices. Electricity •• Final consumption of electricity was almost static at 24 TWh with a 0.7% reduction in the fuel inputs. Electricity demand peaked in 2008 and has since returned to 2004 levels. •• Renewable electricity generation, consisting of wind, hydro, landfill gas, biomass and biogas, accounted for 22.7% of gross electricity consumption. •• The use of renewables in electricity generation in 2014 reduced CO2 emissions by 2.6 Mt and avoided €255 million in fossil fuel imports. •• In 2014, wind generation accounted for 18.2% of electricity generated and as such was the second largest source of electricity generation after natural gas. •• The carbon intensity of electricity fell by 49% since 1990 to a new low of 457 g CO2/kWh in 2014. Progress towards Targets •• The contribution of renewables to gross final consumption (GFC) was 8.6% in 2014. This compares to a target of 16% to be achieved by 2020. This avoided 3.3 million tonnes of CO2 emissions and €346 million of fossil fuel imports. •• In 2014, we were just over halfway towards each of the separate targets for contributions of renewable energy in electricity, transport and heat. •• The average emissions of new cars purchased in 2014 was 117.5 g CO2/km, which is below the EU target for car manufacturers of 130 g CO2/km to be reached by 2015. •• Energy-related CO2 emissions in those sectors outside the EU Emissions Trading Scheme (which covers transport, heating in households, buildings and small industry) were 21% below 2005 levels in 2014. Sectoral Highlights •• In 2014 industry energy use increased by 3.1% and was 14% lower than the peak in 2006. Between 1990 and 2014, industrial energy consumption increased by 33% while value added increased by 208%. •• Transport continues to dominate as the largest energy consuming sector, with a share of 42% in 2014. •• Transport energy use increased by 4% in 2014 with the majority of the growth occurring in diesel use. Private car travel accounts for 47% of energy use in transport and increased by 0.4%. Heavy goods vehicles (HGVs) account for 14% of fuel use and experienced an increase of 6.9% in 2014. •• Residential energy use fell by 8.1% in 2014 relative to 2013. When corrected for weather effects – 2014 was a warmer year than 2013 – the decrease in energy use was 1.5%. •• In 2014 the average household emitted 5.4 tonnes of CO2 of which 61% came from direct fuel use in the home and the remainder from electricity use. •• Final energy use in the commercial and public services fell by 3.6% in 2014 – on a weather corrected basis it increased by 3%. 5 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Table of Contents Foreword3 Highlights4 1Introduction 9 2 Energy Trends 10 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Energy Supply Energy Use by Mode of Application Energy Balance for 2014 Energy Demand Heating Degree Days Energy Intensities Energy Efficiency Electricity Generation 2.8.1 Combined Heat and Power 2.8.2 Primary Fuel Inputs into Electricity Generation 2.9 Electricity Demand 2.10 Energy, Weather and the Economic Downturn 3 Key Policy Issues 3.1 Progress towards Renewable Energy Targets 3.1.2.1Electricity from Renewable Energy Sources (RES-E) 3.1.2.2Heat from Renewable Energy Sources (RES-H) 3.1.2.3Transport Energy from Renewable Sources (RES-T) 3.2 3.3 3.4 4 3.1.1CO2 Displacement and Avoided Fuel Imports Greenhouse Gas Emissions Targets 3.2.1 Transboundary Gas Emissions Energy Security Cost Competitiveness 3.4.1 Energy Prices in Industry 11 14 15 15 18 18 20 21 24 26 28 28 31 31 33 35 37 38 39 43 44 46 47 Sectoral Indicators 51 4.1Industry 4.1.1 Industry Energy Intensity 4.2Transport 4.2.1 Transport Energy Demand by Mode 4.2.2 Private Car Transport 4.2.3 Key Policy Measures Affecting Private Car CO2 Emissions 4.2.4CO2 Emissions of New Private Cars 4.2.5 Energy Efficiency of New Private Cars 4.2.6 Private Car Average Annual Mileage 4.2.7 Heavy Goods Vehicle Activity 4.2.8 Transport Sector Energy Efficiency 4.3Residential 4.3.1 Unit Consumption of the Residential Sector 4.3.2 Residential Sector Energy Efficiency 4.4 Commercial and Public Services 4.4.1 Energy Intensity of the Commercial and Public Services Sector 4.4.2 Public Sector Developments 51 53 55 56 57 58 59 61 62 63 65 66 68 72 74 75 77 5 Energy Statistics Revisions and Corrections 79 Glossary of Terms 80 Energy Conversion Factors 81 Sources83 References84 Energy Balance 2014 86 6 ENERGY POLICY STATISTICAL SUPPORT UNIT Table of Figures Figure 1 Index of Gross Domestic Product, Total Primary Energy (TPER) and Energy-Related CO2 10 Figure 2 Total Primary Energy Requirement 12 Figure 3 Total Primary Energy Requirement by Sector 13 Figure 4 Primary Energy by Mode of Application 14 Figure 5 Energy Flow in Ireland 2014 15 Figure 6 Total Final Consumption by Fuel 16 Figure 7 Total Final Energy Consumption by Sector 17 Figure 8 Heating Degree Day Trend 2014 versus 2013 18 Figure 9 Primary, Final and Electricity Intensity 19 Figure 10 Energy Efficiency Index 1995 – 2014 20 Figure 11 Flow of Energy in Electricity Generation 2014 22 Figure 12 Flow of Energy in Electricity Generation 2014 – Outputs by Fuel 22 Figure 13 Efficiency of Electricity Supply 23 Figure 14 CO2 Emissions per kWh of Electricity Supplied; with Contributions by Fuel 24 Figure 15 CHP Fuel Input and Thermal/Electricity Output 1994 – 2014 25 Figure 16 CHP Electricity as percentage of Total Electricity Generation 1990 – 2014 26 Figure 17 Primary Fuel Mix for Electricity Generation 26 Figure 18 Final Consumption of Electricity by Sector 28 Figure 19 Index of GDP, Final Energy Demand, Final Energy Intensity and Energy Price 29 Figure 20 Annual Changes in Economic Growth, Weather and Sectoral Energy Demand 30 Figure 21 Progress to Targets 2014 31 Figure 22 Renewable Energy (%) Contribution to Gross Final Consumption (Directive 2009/28/EC) 32 Figure 23 Renewable Energy (%) Contribution to GFC by Mode 33 Figure 24 Renewable Energy Contribution to Gross Electricity Consumption (RES-E normalised) 34 Figure 25 Installed Wind Generating Capacity 2000 – 2014 35 Figure 26 Renewable Energy Contribution to Thermal Energy (RES-H) 36 Figure 27 Composition of Biomass used for Heat in TFC in 2014 37 Figure 28 Renewable Energy as a Proportion of (Petrol and Diesel) Transport (RES-T) 38 Figure 29 Avoided CO2 from Renewable Energy 1990 – 2014 39 Figure 30 Greenhouse Gas Emissions by Source 39 Figure 31 Energy-Related CO2 Emissions by Sector , 40 Figure 32 Energy-Related CO2 Emissions by Mode of Energy Application 42 Figure 33 Non Emissions Trading Energy-Related CO2 (non-ETS industry from 2005 onwards) 43 Figure 34 Import Dependency of Ireland and EU 44 Figure 35 Indigenous Energy by Fuel 45 Figure 36 Imported Energy by Fuel 46 Figure 37 Electricity Prices to Industry 47 Figure 38 Oil Prices to Industry 48 Figure 39 Natural Gas Prices to Industry 49 Figure 40 Real Energy Price Change to Industry since 2010 in EU-15 (index) 50 Figure 41 Industry Final Energy Use by Fuel 51 Figure 42 Industry Energy-Related CO2 Emissions by Fuel 52 Figure 43 Industry Energy Intensity 53 Figure 44 Index of Energy Intensity of Industry 1995 – 2014 54 Figure 45 Industry ODEX 1995 – 2014 54 Figure 46 Transport Final Energy Use by Fuel 55 Figure 47 Transport Energy Demand by Mode 1990 – 2014 57 Figure 48 Private Cars per 1,000 of Population 58 Figure 49 Shares of New Private Cars in each Emissions Band 2000 – 2014 (+2015 to October) 59 Figure 50 Specific CO2 Emissions of New Cars, 2000 – 2014 (2015 estimated) 60 Figure 51 Specific CO2 Emissions of New Cars: International Comparison – 2013 61 Figure 52 Weighted Average Specific Fuel Consumption of New Cars 2000 – 2014 62 7 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 53 Total Private Car Annual Mileage 2000 – 2014 63 Figure 54 Road Freight Activity 1991 – 2014 63 Figure 55 Absolute Change in Road Freight Activity by Main Type of Work Done 1990 – 2014 64 Figure 56 Transport ODEX 1995 – 2014 65 Figure 57 Residential Final Energy Use by Fuel 66 Figure 58 Residential Energy-Related CO2 by Fuel 68 Figure 59 Unit Consumption of Energy per Dwelling (permanently occupied) 69 Figure 60 Floor Areas of New Houses and New Flats 70 Figure 61 Average Floor Area of the Housing Stock 1990 – 2014 71 Figure 62 Unit Energy-Related CO2 Emissions per Dwelling 72 Figure 63 Household ODEX 1995 – 2014 73 Figure 64 Commercial and Public Services Final Energy Use by Fuel 74 Figure 65 Commercial and Public Services Sector CO2 Emissions by Fuel 75 Figure 66 Energy Intensity of Commercial and Public Services Sector 76 Figure 67 Unit Consumption of Energy and Electricity per Employee in the Commercial and Public Services Sector 76 8 ENERGY POLICY STATISTICAL SUPPORT UNIT Table of Tables Table 1 GDP, TPER and CO2 Growth Rates 11 Table 2 Growth Rates, Quantities and Shares of TPER Fuels 12 Table 3 Growth Rates, Quantities and Shares of TPER by Sector 13 Table 4 Growth Rates, Quantities and Shares of TFC Fuels 16 Table 5 Growth Rates, Quantities and Shares of TFC by Sector 17 Table 6 Number of Units and Installed Capacity by Fuel 2014 25 Table 7 Growth Rates, Quantities and Shares of Electricity Generation Fuel Mix (primary fuel inputs) 27 Table 8 Growth Rates, Quantities and Shares of Electricity Final Consumption 28 Table 9 Renewable Energy Progress to Targets 32 Table 10 Renewable Energy Contribution to Gross Electricity Consumption (RES-E normalised) 34 Table 11 Annual Capacity Factor for Wind and Hydro Generation in Ireland 2000, 2005 – 2014 35 Table 12 Biofuels Growth in ktoe and as a Proportion of Road and Rail Transport Energy 2005 – 2014 38 Table 13 Growth Rates, Quantities and Shares of ETS and non-ETS Energy-Related CO2 since 2005 40 Table 14 Growth Rates, Quantities and Shares of Primary Energy-Related CO2 by Sector 41 Table 15 SO2 and NOx Emissions and NEC Directive Ceilings for 2010 43 Table 16 Electricity Price to Industry Increase since 2010 47 Table 17 Oil Price to Industry Increase since 2010 48 Table 18 Natural Gas Price to Industry Increase since 2010 49 Table 19 Growth Rates, Quantities and Shares of Final Consumption in Industry 51 Table 20 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Industry 52 Table 21 Growth Rates, Quantities and Shares of Final Consumption in Transport 55 Table 22 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Transport 56 Table 23 Growth Rates, Quantities and Shares of Transport Final Energy Demand by Mode, 1990 – 2014 56 Table 24 CO2based Vehicle Registration and Road Tax Bands 58 Table 25 Shares of New Private Cars in each Emissions Band, 2000, 2005 – 2014 (+2015 to October) 60 Table 26 Road Freight Activity 1991 – 2014 64 Table 27 Growth Rates, Quantities and Shares of Final Consumption in Residential Sector 67 Table 28 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Residential Sector 68 Table 29 Growth Rates in Residential Floor Areas per New Dwelling 69 Table 30 Growth in Average Floor Area – Housing Stock 70 71 Table 31 Growth Rates and Quantities of Residential Unit Energy Consumption and Unit CO2 Emissions Table 32 Growth Rates, Quantities and Shares of Final Consumption in the Commercial and Public Services Sector 74 Table 33 Growth Rates, Quantities and Shares of CO2 Emissions in Commercial and Public Services 75 Table 34 Growth Rates and Quantities of Unit Consumption per Employee in Commercial and Public Services 77 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 9 1 Introduction Timely and reliable energy statistics underpin evidence-based decision making. To this end, this publication presents a comprehensive overview of energy supply and demand in Ireland in order to inform Government policy and the wider energy debate. The information in the report is based on an energy balance for the country which shows the flow of energy from production, transformation and energy sector own use through to final consumption in different sectors of the economy. The energy balance is the starting point for the construction of various indicators of energy consumption (for example consumption per unit of GDP), of energy efficiency and also of other areas of national interest such as energy-related greenhouse gas (GHG) emissions. The data in the energy balance is based on monthly and annual surveys received from approximately 300 organisations including energy producers, import/export companies and energy supply companies. In addition, SEAI uses this data to fulfil Ireland’s energy statistics reporting obligations to Eurostat, under the EU Energy Statistics Regulation (1099/2008 EC), and to the International Energy Agency (IEA) through the completion of upwards of one hundred annual, quarterly, monthly and ad hoc questionnaires each year. The energy balance develops continuously as new methods and methodologies become available. This ensures that the best information is available. The main changes related to the period 1990 – 2014 are presented in this report and are described later. A companion publication, Energy Statistics – 2015 Report, is also available, presenting the background data for the analysis contained herein. Additionally, Energy in Ireland Key Statistics is available, which summaries Ireland’s energy statistics in a concise pocket-sized booklet. It is intended that these publications serve as resources for policymakers, analysts and researchers with an interest in energy use in Ireland. Feedback and comment on this report are welcome and should be sent by post to the address on the back cover or by email to [email protected] 1 Introduction This annual publication from the Sustainable Energy Authority of Ireland (SEAI) presents national energy statistics on energy production and consumption in Ireland over the period 1990 – 2014. Specifically, the report presents energy trends and underlying drivers as well as discussing sectoral energy consumption and how energy trends relate to Government and EU renewable energy targets. 10 ENERGY POLICY STATISTICAL SUPPORT UNIT 2 Energy Trends Energy supply depends on the demand for energy services (heating, transportation and electricity uses) and how that demand is delivered. Energy service demand in turn is driven primarily by economic activity and by the energy end-use technologies employed in undertaking the activity. Figure 1 shows the historical trends for GDP, TPER and Energy CO2, each expressed as an index relative to 1990. Throughout the 1990s and early 2000s economic growth was particularly strong, especially from 1993 onwards. This resulted in Gross Domestic Product (GDP) – a measure of economic growth – in 2007 being almost three times that of 1990. In 2008 the economy experienced a downturn that deepened into 2009. Initially in 2008, certain sectors, namely industry and transport, also experienced reductions in energy use while there was continuing energy growth in the residential and services sectors partly due to weather conditions. In 2009, however, all sectors of the economy experienced reductions in energy use and related CO2 emissions. 2011 to 2013 were mild years compared with 2010 and, notwithstanding the flat growth in GDP, there was a drop in energy demand across all sectors of the economy during these years. In 2014 the economy started to grow strongly again with GDP increasing by 5.2% while overall energy use continued to fall albeit at a slower rate of 0.5%. Figure 1 Index of Gross Domestic Product, Total Primary Energy (TPER) and Energy-Related CO2 300 280 260 240 Index 1990 = 100 2 Energy Trends This section provides an overview of energy trends in Ireland, covering the period 1990 – 2014 with a particular focus on 2014. Ireland’s total energy supply (gross energy consumption or total primary energy requirement [TPER]) is examined first, both in terms of the mix of fuels used and consumption by individual sectors. Trends in final energy demand, i.e. the amount of energy used directly by final consumers, are then assessed. The link between energy use and economic activity, and the impacts of structural and efficiency changes are also discussed and finally electricity production is examined in its own right because of its importance as an energy service and the amount of energy consumed in its generation. 220 200 180 160 140 120 100 1990 1992 1994 1996 GDP (CSO) 1998 2000 2002 TPER 2004 2006 2008 2010 2012 2014 Energy CO₂ Source: Based on SEAI and CSO data. Figure 1 shows the relative decoupling of TPER (also known as gross inland consumption1) from economic growth since 1992, in particular during 2002 – 2003, 2006 – 20082 and 2010 – 2014. This is a result of changes in the structure of the economy and improvements in energy efficiency. To a lesser extent, the decoupling of CO2 emissions3 from 1 As energy cannot be created or destroyed energy is not strictly speaking consumed. Energy commodities, or fuels, are in effect energy carriers and allow the energy contained in them to be used for mobility, power and heat purposes. When a commodity is used the energy is not lost but transformed into a state that is no longer readily useful, mainly in the form of low grade heat. When this happens the commodity that carried the energy has been consumed and is removed from the energy (commodity) balance. In this way terms such as Gross Inland Consumption and Total Final Consumption (TFC) may be interpreted as the final consumption of energy commodities. 2 In 2002 and 2003 a significant factor in the reduction in TPER was the commissioning of two new high-efficiency gas-fired electricity generating plants. A similar situation occurred in 2006 – 2007. Reduction in demand after 2007 was mainly due to reduced economic activity. 3 Energy-related CO2 emissions shown here (2014 data are provisional) cover all energy-related CO2 emissions associated with TPER, including emissions associated with international air transport. These are usually excluded from the national GHG emissions inventory in accordance with the reporting procedures of the UN Framework Convention on Climate Change (UNFCCC) guidelines. 11 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) energy use is also evident, particularly since 1993, and this is due to changes in the fuel mix and the efficiency of the power generation sector. Changes in the fuel mix of the final consuming sectors also contributed to this decoupling with, for example, the move away from high carbon fuels such as coal and peat in the residential sector to lower carbon fuels such as natural gas and more recently renewables. Since 2010 the economy has grown to some extent each year while energy use has continued to fall, with a cumulative drop of 11% between 2010 and 2014. Some of the reduction in energy use can be accounted for by weather as it has generally been warmer since the very cold year that was experienced in 2010. Other reasons for the reduction can also be attributed to a large increase (83%) in wind generation, which reduced the primary energy requirements for electricity generation. There were also continued improvements in the energy performance of households arising from changes to the building regulations and the retrofit grant schemes. Also, in transport 38% of the private cars on the road in 2014 are the more fuel efficient models purchased since 2008 when the Vehicle Registration and Road Taxes changed to be biased towards lower emission vehicles. Table 1 displays the growth rates for the economy (GDP), primary energy (TPER) and energy-related CO2 emissions for the period 1990 – 2014. It highlights the high GDP growth rates compared with those for energy and CO2 prior to 2008 and the continued decreases in primary energy and energy-related CO2 in 2014. It is interesting to compare the trend over the nine year period 2005 – 2014 with that for the whole period, given the significance of 2005 with respect to the EU Decision 406/2009/EC on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020. Under the EU Decision, Ireland’s greenhouse gas emissions (GHG) in non-Emissions Trading Scheme (non-ETS) sectors (i.e. in transport, agriculture, heating in buildings, waste and small industry) are required to be 20% below 2005 levels by 2020. Estimation of non-ETS energy emissions is given in Section 3.2. Over the nine years, overall energy-related CO2 emissions have fallen by 2.9% per annum on average, an aggregate decrease of 23%, returning to 1997 levels, while the economy has returned to 2007 levels. In contrast, over the 23 year period since 1990, on average, energy-related CO2 emissions grew by 0.7% per annum, while the economy grew by 4.6% per annum. Table 1 GDP4, TPER and CO2 Growth Rates5 GDP TPER Energy CO2 Energy CO2 (excl. international aviation) Growth % 1990 – 2014 197.6 39.7 17.4 ‘90 – ‘14 4.6 1.4 0.7 14.2 0.6 Average annual growth rates % ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 5.3 0.8 2.3 2.8 -1.4 -2.6 2.4 -2.5 -3.2 2.2 -2.6 -3.4 2014 5.2 -0.5 -1.2 -1.9 2.1Energy Supply Ireland’s energy supply is discussed in terms of changes to the TPER, defined as the total amount of energy used within Ireland in any given year. This includes the energy requirements for the conversion of primary sources of energy into forms that are useful for the final consumer, for example electricity generation and oil refining. These conversion activities are not all directly related to the level of economic activity that drives energy use but are dependent to a large extent, as in the case of electricity, on the efficiency of the transformation process and the technologies involved. Figure 2 illustrates the trend in energy supply over the period 1990 – 2014, emphasising changes in the fuel mix. Primary energy consumption in Ireland in 2014 was 13,270 ktoe. Over the period 1990 – 2014 Ireland’s annual TPER grew in absolute terms by 40% (1.4% per annum on average). In 2014 Ireland’s primary energy requirement fell by 0.5% following a 0.9% fall in 2013. Between 2005 and 2014 primary energy requirement fell by 16%. 4 Gross Domestic Product (GDP) rates are calculated using constant market prices chain-linked annually and referenced to 2013. 5 Throughout the report where annual growth rates are across multiple years they always refer to average annual growth rates. 2 Energy Trends In 2008 when the economy entered recession, GDP fell by 2.6% compared with 2007, while primary energy use grew by 0.7% and energy-related CO2 emissions grew by 0.9%. In 2009, the downturn in the economy deepened with GDP falling by 6.4% and energy and related CO2 emissions falling by 9.8% and 10.8% respectively. With energy use falling at a faster rate than GDP and emissions falling faster than energy use, there continued to be decoupling of energy use from economic activity and emissions from energy use. In 2010 the rate of decline of the economy slowed to 0.3% while overall energy use grew by 0.5% and emissions fell by 0.3%. 12 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 2 Total Primary Energy Requirement6 16 14 12 Mtoe 10 8 6 2 Energy Trends 4 2 0 1990 1992 Coal 1994 Peat 1996 Oil 1998 2000 Natural Gas 2002 Renewables 2004 2006 2008 NR(W) 2010 2012 2014 Net Electricity Import/Export The individual fuel growth rates, quantities and shares are shown in Table 2. Primary energy requirement peaked in 2008 and has fallen by 18% since then. Table 2 Growth Rates, Quantities and Shares of TPER Fuels Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Fossil Fuels (Total) Coal Peat Oil Natural Gas Renewables (Total) Hydro Wind Biomass Other Renewables Non-Renewable (Wastes) Electricity Imports (net) Total Quantity (ktoe) Shares % 2014 1990 2014 1990 2014 28.6 1.1 2.5 -1.8 -3.7 -1.5 9,330 12,001 98.2 90.4 -39.4 -44.2 41.3 157.3 508.8 1.7 188.2 8971.1 39.7 -2.1 -2.4 1.5 4.0 7.8 0.1 4.5 20.7 1.4 0.8 -0.4 3.0 2.6 9.7 -5.7 35.4 9.8 8.9 83.6 2.8 -8.0 -1.1 -4.4 6.2 13.0 -1.0 20.4 3.1 33.7 -25.5 -1.4 0.4 0.8 -3.8 -5.7 10.4 4.3 16.2 9.6 3.9 64.8 46.2 -2.6 -4.6 6.2 -0.8 -3.1 13.3 18.2 13.2 13.9 11.6 9.1 -4.2 -0.5 2,085 1,377 4,422 1,446 168 60 0 105 2 9,497 1,262 768 6,249 3,721 1,021 61 442 304 214 63 185 13,270 22.0 14.5 46.6 15.2 1.8 0.6 1.1 0.0 - 9.5 5.8 47.1 28.0 7.7 0.5 3.3 2.3 1.6 0.5 1.4 The following are the main trends in national fuel share: •• Overall primary energy use fell by 0.5% in 2014. Consumption of all fuels fell in 2014 with the exception of peat, renewables and non-renewable wastes. •• Fossil fuels accounted for 90% of all energy used in Ireland in 2014, excluding the embodied fossil fuel content of imported electricity. Demand for fossil fuels fell by 1.5% in 2014 to 12,001 ktoe and has fallen 21% since 2005. •• Coal use fell by 4.6% and its share fell back to 9.5% in 2014 from 9.9% in 2013. Over the nine years 2005 – 2014, coal demand fell by 33% (4.4% per annum). •• Peat use grew by 6.2% and its share of overall energy use was 5.8% in 2014. •• Oil continues to be the dominant energy source and had a 47% share in 2014 – the same as in 1990. The share of oil in overall energy use peaked in 1999 at 60%. Consumption of oil, in absolute terms, fell by 0.8% in 2014 to 6,249 ktoe. Over the nine years 2005 – 2014, oil demand fell by 32% (4.1% per annum). 6 ‘NR(W)’ in the chart represents energy from Non-Renewable Wastes. 13 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) •• Natural gas use fell in 2014 by 3.1% to 3,721 ktoe and its share of TPER was 28%. Over the period 2005 – 2014, natural gas use increased by 7% (0.8% per annum). •• Total renewable energy increased by 13.3% during 2014 to 1,021 ktoe. All forms of renewable energy experienced growth with hydro, wind and biomass growing by 18.2%, 13.2% and 13.9% respectively. The overall share of renewables in primary energy stood at 7.7% in 2014. •• Energy from non-renewable wastes increased by 9.1% in 2014 to 63 ktoe following a 32% increase in 2013. •• Electricity imports (net) fell by 4.2% to 185 ktoe in 2014. The interconnector to the UK came on stream in 2013. Figure 3 allocates Ireland’s primary energy supply to each sector of the economy, according to its energy demand. The allocation is straightforward where fuels are used directly by a particular sector. Regarding electricity, the primary energy associated with each sector’s electricity consumption is included to yield the total energy supply for each sector. Figure 3 Total Primary Energy Requirement by Sector7 2 Energy Trends 16 14 12 Mtoe 10 8 6 4 2 0 1990 1992 Industry 1994 1996 Transport 1998 2000 Residential 2002 2004 2006 2008 2010 Commercial/Public Services 2012 2014 Agriculture Primary energy supply gives a more complete measure than final energy demand (accounted for in the gas, oil, electricity and coal bills) of the impact of the individual sectors on national energy use and on energy-related CO2 emissions. Table 3 shows the growth rates of the different sectors in terms of TPER and also provides the percentage shares of TPER for 1990 and 2014. Industry and transport energy use grew in 2014, which can be directly attributed to the growth in the economy, while energy use in the residential and services sectors fell. Energy use in the residential and services sectors is mainly for space heating and 2014 was a comparatively mild year. Table 3 Growth Rates, Quantities and Shares of TPER by Sector Industry Transport Residential Services Agriculture / Fisheries Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 27.2 1.0 -0.9 -2.0 -0.4 122.8 3.4 4.5 -2.1 -0.5 10.2 0.4 2.2 1.6 -6.1 27.3 1.0 3.7 -3.0 -4.6 -20.9 -1.0 1.3 -5.2 -5.6 2014 2.4 4.1 -7.2 -2.3 -6.5 Quantity (ktoe) 1990 2014 2,524 3,210 2,054 4,576 2,995 3,301 1,476 1,878 359 284 Shares % 1990 2014 26.8 24.2 21.8 34.5 31.8 24.9 15.7 14.2 3.8 2.1 Changes in sectoral primary energy consumption presented in Table 3 are as follows: 7 International air transport kerosene is included in the transport sector in these graphs. Later graphs showing CO2 emissions by sector omit international air transport energy emissions following UN Intergovernmental Panel on Climate Change (IPCC) guidelines. In addition, the effects of cross border trade (fuel tourism) and the smuggling of diesel and petrol are not included in this analysis. Estimates of fuel tourism produced by the Department of the Environment, Community and Local Government are now included in the energy balance and presented in the Transport section. 14 ENERGY POLICY STATISTICAL SUPPORT UNIT •• Transport experienced an increase in primary energy use in 2014 of 4.1% to 4,576 ktoe. Transport primary energy use had fallen by 28% between 2007 and 2012. Transport remains the largest energy consuming sector with a 35% share of primary energy in 2014. •• Industry primary energy increased by 2.4% in 2014 to 3,210 ktoe. Industry’s share of primary energy was 24% in 2014. Primary energy use in industry fell in general between 2006 and 2013, with 2010 and 2012 being the exceptions. •• In 2014, primary energy use in households fell by 7.2% to 3,301 ktoe. 2014 was milder than 2013 with 10% fewer heating degree days. Residential share of primary energy was 25% in 2014. •• Use of primary energy in the commercial and public services sector fell by 2.3% in 2014 to 1,878 ktoe. Services’ share of primary energy was 14% in 2014. •• Agriculture/fisheries’ primary energy use decreased by 6.5% in 2014 to 284 ktoe and accounted for 2.1% of primary energy. 2.2Energy Use by Mode of Application Energy use can be categorised by its mode of application: whether it is used for mobility (transport), power applications (electricity) or for thermal uses (space, water or process heating). These modes also represent three distinct energy markets. Where thermal or transport energy is provided by electricity (e.g. electric heaters and electric vehicles) this energy is considered under electricity, and not under thermal or transport, so that double counting is avoided. In 1990 thermal uses for energy (4,211 ktoe) accounted for a significant proportion of all primary energy (45%), while electricity accounted for 33% (3,094 ktoe) and transport 22% (2,017 ktoe). This contrasts with the situation in 2014 when the transport share had risen to 34% (4,519 ktoe), the thermal share had fallen to 32% (4,238 ktoe) and the share of energy use for electricity generation remained at 33% (4,365 ktoe). The changes in mode shares are shown in Figure 4. Figure 4 Primary Energy by Mode of Application 6 5 4 Mtoe 2 Energy Trends •• Primary energy use in the residential sector and services sector can be considered collectively as energy in buildings as most of the energy use is associated with heating/cooling and lighting the buildings. In 2014, primary energy in buildings accounted for 39% of primary energy supply. Overall, primary energy use in buildings had increased by 16% since 1990 (0.6% per annum) and in 2014 it fell by 5.5% to 5,179 ktoe. 3 2 1 0 1990 1995 Transport 2000 2005 Electricity 2010 Thermal 2014 15 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 2.3Energy Balance for 2014 Figure 5 shows the energy balance for Ireland in 2014 as a flow diagram. This illustrates clearly the significance of each of the fuel inputs as well as showing how much energy is lost in transformation and the sectoral split of final energy demand. Figure 5 Energy Flow in Ireland 20148 Hydro 61 ktoe Biomass, Other Renewables and Wastes 581 ktoe Electricity Imports (net) 185 ktoe Total Primary Energy Requirement 13,270 ktoe Briquetting 13 ktoe Oil 6,249 ktoe Natural Gas 3,721 ktoe Coal 1,262 ktoe Peat 768 ktoe Natural Gas own use/loss 64 ktoe Oil Refining 71 ktoe Electricity Transformation and Transmission Losses 2,222 ktoe Total Fin al C 10,833 kt onsumption oe Agriculture and Fisheries 230 ktoe Services 1,251 ktoe Note: Some statistical differences exist between inputs and outputs Transport 4,522 ktoe Residential 2,539 ktoe Industry 2,291 ktoe Oil dominates as a fuel, accounting for 6,249 ktoe, representing 47% of the total requirement. Renewables are disaggregated into wind, hydro and other renewables in this version of the diagram. Transport continues to be the largest of the end-use sectors, accounting for 4,522 ktoe, representing 42% of TFC (see section 2.4) in 2014. Losses associated with the transformation of primary energy to electricity, power plant in-house load and electricity network losses were 17% of TPER or 2,222 ktoe in 2014 (51% of the primary energy used for electricity generation). In 1990 losses associated with electricity generation represented 22% of TPER and 67% of the primary energy used for generation. 2.4Energy Demand Final energy demand is a measure of the energy that is delivered for use in activities as diverse as manufacturing, movement of people and goods, essential services and other day-to-day energy requirements of living; space and water heating, cooking, communication, entertainment, etc. This is also known as Total Final Consumption (TFC) and is essentially total primary energy less the quantities of energy required to transform primary sources such as crude oil and other fossil fuels into forms suitable for end-use consumers; electricity, patent fuels, etc. (transformation, processing or other losses entailed in delivery to final consumers are known as ‘energy overhead’). Figure 6 shows the shift in the pattern of final energy demand by fuel over the period 1990 – 2014. 8 All energy inputs shown here represent the sum of indigenous production plus, where applicable, net imports i.e. imports minus exports. 2 Energy Trends Wind 442 ktoe 16 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 6 Total Final Consumption by Fuel 14 12 10 Mtoe 8 6 2 Energy Trends 4 2 0 1990 1992 Coal 1994 Peat 1996 Oil 1998 2000 2002 Natural Gas 2004 2006 Electricity 2008 2010 Renewables 2012 2014 NR(W) Ireland’s TFC in 2014 was 10,833 ktoe, an decrease of 0.4% on 2013 and 49% above the 1990 level of 7,249 ktoe (representing growth of 1.7% per annum on average). When corrected for weather, final energy consumption increased in 2014 by 2.1%. Final consumption peaked in 2008 at 13,206 ktoe and has fallen by 18% since then. The changes in the growth rates, quantities and respective shares of individual fuels in final consumption over the period are shown in Table 4. For more detail on absolute values associated with Table 4 see the companion document Energy Statistics 1990 – 2014. Table 4 Growth Rates, Quantities and Shares of TFC Fuels Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Fossil Fuels (Total) 36.0 1.3 2.9 -1.9 -2.9 Coal -61.3 -3.9 4.0 -5.4 -2.9 -73.5 -5.4 -2.0 -1.5 -5.7 Peat Oil 56.0 1.9 3.1 -2.7 -3.7 186.5 4.5 2.6 3.1 0.6 Natural Gas Renewables 267.3 5.6 10.2 10.9 5.4 Non-Renewable (Wastes) 45.7 Combustible Fuels (Total) 39.8 1.4 3.0 -1.6 -2.6 Electricity 103.4 3.0 3.7 0.9 -1.3 Total 49.4 1.7 3.1 -1.2 -2.3 Total Climate Corrected 47.1 1.6 3.3 -2.2 -1.0 2014 -1.1 -8.2 -8.1 -0.7 -0.1 14.7 10.3 -0.5 -0.3 -0.4 2.1 Quantity (ktoe) 1990 2014 6,121 8,323 843 326 757 201 3,952 6,165 570 1,631 108 396 0 38 6,229 8,708 1,021 2,076 7,249 10,833 7,393 10,878 Shares % 1990 2014 84.4 76.8 11.6 3.0 10.4 1.9 54.5 56.9 7.9 15.1 1.5 3.7 0.0 0.4 85.9 80.4 14.1 19.2 The most significant changes can be summarised as follows: • All fuels use, with the exception of renewables and non-renewable wastes, fell in final consumption in 2014. Energy from renewable sources experienced the largest increase in 2014 growing by 14.7% to 396 ktoe. • Final consumption of oil fell by 0.7% in 2014 to 6,165 ktoe. Consumption of oil was 28% lower in 2014 than prior to the economic slowdown in 2007. Its share of final energy consumption in 2014 was 57% compared with 65% in 2007. Almost three quarters (71% or 4,402 ktoe) of this oil was used in transport and the remaining 1,762 ktoe was used for thermal energy. Final use of oil increased in the transport sectors by 3.8% while it fell in industry, residential and services by 13.5%, 6.5% and 17% respectively. • In 2014 natural gas consumption fell 0.1% to 1,631 ktoe. The share of gas in final consumption in 2014 was 15%. • Final consumption of coal fell by 8.2% in 2014 to 326 ktoe. Its share of final use in 2014 was at 3.0%. Coal use in industry increased by 30% to 107 ktoe while coal use in the residential sector fell by 20% to 219 ktoe. The fall in coal consumption may have also been in part due to a certain amount of stockpiling by householders ahead of the introduction of the carbon tax on solid fuels in 2013. These stocks would then have been used in 2014 but didn’t show up in the purchases of coal for that year. 17 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) •• Final consumption of electricity in 2014 fell by 0.3% to 2,076 ktoe (or 24,135 GWh). In 2014, electricity accounted for 19% of final energy use. •• Final consumption of peat fell by 8.1% in 2014 to 201 ktoe. Peat accounted for 1.9% of final energy consumption in 2014. Figure 7 also shows the trend in TFC over the period, here allocated to each sector of the economy. Figure 7 Total Final Energy Consumption by Sector 14 12 10 2 Energy Trends Mtoe 8 6 4 2 0 1990 1992 Industry 1994 1996 Transport 1998 2000 Residential 2002 2004 2006 2008 Commercial/Public Services 2010 2012 2014 Agriculture The effect of the economic downturn is evident from 2008 onwards. It is also evident from Figure 7 that transport continues to dominate (since the mid-1990s) as the largest energy consuming sector (on a final energy basis) with a share of 42% in 2014. The shares of the industry and residential sectors have decreased since 1990. In 2014 industry accounted for approximately one fifth of final energy use and the residential sector for approximately one quarter. Table 5 Growth Rates, Quantities and Shares of TFC by Sector Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 2014 Industry 33.3 1.2 0.7 -3.0 0.3 3.1 Transport 124.0 3.4 4.4 -2.0 -0.4 4.0 Residential 12.4 0.5 3.3 2.2 -6.1 -8.1 Commercial / Public 28.6 1.1 3.6 -1.3 -4.0 -3.6 Agriculture / Fisheries -18.2 -0.8 2.1 -5.1 -6.0 -7.7 Total 49.4 1.7 3.1 -1.2 -2.3 -0.4 Quantity (ktoe) 1990 2014 1,720 2,291 2,019 4,522 2,258 2,539 972 1,251 280 230 7,249 10,833 Shares % 1990 2014 23.7 21.2 27.8 41.7 31.2 23.4 13.4 11.5 3.9 2.1 The changes in growth rates, quantities and shares are shown in Table 5 and summarised as follows: • Overall final energy consumption fell by 0.4% in 2014 to 10,833 ktoe. • Energy use in transport grew in 2014 by 4.0% to 4,522 ktoe but was 21% lower than in 2007. • In 2014, final energy use in industry grew 3.1% to 2,291 ktoe. Over the 1990 – 2014 period, the average growth rate in final energy use in industry was 1.2% per annum (or 33% in absolute terms) and its share of TFC dropped from 24% to 21%. • Final energy use in the residential sector fell by 8.1% in 2014 to 2,539 ktoe, partly due to the weather being milder compared with 2013. Correcting for weather9, the reduction in energy use was 1.5%. • There was a 3.6% fall in final energy use in the commercial and public services sector in 2014 to 1,251 ktoe. Correcting for weather there was an increase of 3%. • The agricultural and fisheries sectors’ relative share fell from 3.9% in 1990 to 2.1% in 2014. In absolute terms, agriculture energy consumption in 2014 fell by 7.7% to 230 ktoe. 9 See Glossary for description of Weather Correction. 18 ENERGY POLICY STATISTICAL SUPPORT UNIT 2.5Heating Degree Days Weather variations from year to year can have a significant effect on the energy demand of a country, in particular on the portion of the energy demand associated with space heating. A method to measure the weather or climatic variation is through the use of ‘degree days’. Degree days is the measure or index used to take account of the severity of the weather when looking at energy use in terms of heating (or cooling) load on a building. A degree day is an expression of how cold (or warm) it is outside, relative to a day on which little or no heating (or cooling) would be required. It is thus a measure of the cumulative temperature deficit (or surplus) of the outdoor temperature relative to a neutral target temperature (base temperature) at which no heating or cooling would be required. It should be noted that the larger the number of heating degree days, the colder the weather. Also note that the typical heating season in Ireland is October to May. If, for example, the outdoor temperature for a particular day is 10 degrees lower than the base temperature (15.5 degrees), this would contribute 10 degree days to the annual or monthly total. Figure 8 shows the heating degree days per month for 2014 and 2013. Figure 8 Heating Degree Day Trend 2014 versus 2013 500 450 400 350 Degree Days 2 Energy Trends Met Éireann calculates degree day data for each of its synoptic weather stations. SEAI calculates a population weighted average of these data to arrive at a meaningful degree day average for Ireland that is related to the heating energy demand of the country. 300 250 200 150 100 50 0 Jan Feb 2014 Mar Apr 2013 May Jun Min Jul Aug Max Sep Oct Nov Dec Average Source: Met Eireann and SEAI The graphs show the minimum, maximum and average degree days for each month for the last 30 years together with the monthly degree days for each year. Figure 8 shows that 2014 was an average year in terms of heating requirement with the profile of degree days following almost exactly the average for the last 30 years. Compared with 2013 there were 10% fewer degree days (i.e. it was warmer) in 2014. 2.6Energy Intensities Energy intensity is defined as the amount of energy required to produce some functional output. In the case of the economy, the measure of output is generally taken to be the GDP10. GDP measured in constant prices is used to remove the influence of inflation. The inverse of energy intensity represents the energy productivity of the economy. The intensity of primary and final energy and of electricity requirements has been falling (reflecting improving energy productivity) since 1990, as shown in Figure 9. The primary energy intensity of the economy fell by 39% between 1990 and 2007 (2.8% per annum). In 1990 it required 150 grammes of oil equivalent (goe) to produce one 10 It can be argued that in Ireland’s case, gross national product (GNP) should be used to address the impacts due to the practice of transfer pricing by some multinationals. The counter argument is that energy is used to produce the GDP and by using the GNP some of the activity would be omitted. The practice internationally is to use GDP, so for comparison purposes it is sensible to follow this convention. 19 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) euro of GDP (in constant 2013 values) whereas in 2007 just 87 goe was required. Between 2007 and 2014 primary energy intensity fell by 19.5% to 70 goe/€2013 and was 53% lower than 1990. Figure 9 shows the trend in both primary (TPER/GDP) and final (TFC/GDP) energy intensities (at constant 2013 prices). The difference between these two trends reflects the amount of energy required in the transformation from primary energy to final energy – primarily used for electricity generation. Throughout the 1990s there was a slight convergence of these trends, particularly after 1994, mostly reflecting the increasing efficiency of the electricity generation sector. This trend towards convergence intensified from 2001 to 2007 (increased efficiency in electricity generation) when primary intensity fell at a faster rate than final intensity. The decrease in primary intensity between 2001 and 2007 was 19% whereas for final intensity the decrease was 15%. Figure 9 Primary, Final and Electricity Intensity 0.16 0.50 0.35 0.10 0.30 0.08 0.25 0.20 0.06 0.15 0.04 0.10 0.02 0.05 0.00 0.00 1990 1992 1994 1996 Primary Intensity 1998 2000 2002 2004 Final Intensity 2006 2008 2010 2012 2014 Electricity Intensity Conversely, the increase in final intensity of 2.7% in 2008 is related to the downturn in the economy and the colder weather. In 2009 primary energy intensity fell by 4.3% and final intensity by 3.8%. In 2010 both primary and final intensities remained virtually static as any further efficiency changes were masked by the lack of economic growth and weather impacts. Between 2010 and 2014, the primary and final intensity trends converged slightly with primary energy intensity falling at a slightly faster rate, 18%, compared with a 17% fall in final intensity. There are many factors that contribute to how the trend in energy intensity evolves. These factors include: technological efficiency and the fuel mix, particularly in relation to electricity generation; economies of scale in manufacturing, and not least; the structure of the economy. Economic structure, in Ireland’s case, has changed considerably over the past twenty years. The structure of the economy has shifted in the direction of the high value-added11 sectors such as pharmaceuticals , electronics and services. Relative to traditional ‘heavier’ industries, such as car manufacturing and steel production, these growing sectors are not highly energy intensive. Examples of changes to the industry sector structure include the cessation of steel production in 2001, of fertiliser production in late 2002 and of sugar production in 2007. Energy intensity will continue to show a decreasing trend if, as expected, the economy becomes increasingly dominated by high value-added, low energy consuming sectors. This results in a more productive economy from an energy perspective but does not necessarily mean that the actual processes used are more energy efficient. There may therefore still be room for improvement. The increase in primary intensity of 4.3% in 2008 is interesting if not unexpected. As well as some reductions in economies of scale due to the downturn, which would tend to increase intensity, the weather also played a part in the intensity increase. As 2008 was considerably colder than 2007, with 20% more heating degree days; energy use increased at a time when the economy declined. Similarly, 2010 was even colder than 2008; heating degree days were 26% above the long-term average (2008 was 7% above the average), resulting in primary energy intensity falling only slightly, by 0.4%. With the return to 11 See Glossary. 2 Energy Trends Primary and Final Intensities (kgoe/€(constant)) 0.40 0.12 Electricity Intensity (kWh/€(constant)) 0.45 0.14 20 ENERGY POLICY STATISTICAL SUPPORT UNIT mild weather in 2011 the effect of the increased energy productivity becomes apparent again, with a reduction in primary energy intensity of 8.8%. Primary energy intensity continued to decrease with a fall of 5.4% in 2014 and a cumulative decrease of 18% since 2010. The final electricity intensity of the economy has not been falling as fast as primary or final energy intensities. Over the period 1990 – 2007 the electricity intensity fell by 26%. This is attributed to the shift towards increased electricity consumption in energy end-use. While electricity consumption increased by 118% between 1990 and 2007 (4.7% average annual growth), final energy demand increased by 81% (3.6% annual growth). Electricity final intensity increased by 6.1% between 2007 and 2010, but fell by 13.4% between 2010 and 2014. 2.7Energy Efficiency As mentioned in Section 2.6 energy intensity is a crude indicator and variation may result from many factors such as economic, structural, technical, weather, behavioural issues, or because real energy efficiency gains have been made. To better understand energy efficiency trends and to clarify the role of the energy-related factors, an approach focusing on techno-economic effects is required to clean or remove changes due to macroeconomic or structural effects13. This type of analysis has been developed since 1993 through the ODYSSEE14 project, which includes Irish involvement through the SEAI. A set of indicators have been developed which measure achievements in energy efficiency at the level of the main end-uses. Figure 10 Energy Efficiency Index 1995 – 2014 100 95 91 90 89 85 Index 1995 = 100 2 Energy Trends Energy efficiency is defined as a ratio between an output of performance, service, goods or energy and an input of energy. Essentially improvements in energy efficiency enable the same achievement with less energy, or the achievement of an improved performance with the same energy. For a more detailed discussion on energy efficiency in Ireland see the SEAI’s Energy Efficiency in Ireland 2009 Report12. However the energy efficiency indicators presented in this report have been recalculated, using updated energy and activity data, to 2014 figures. 80 75 70 65 60 55 50 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Overall Energy Efficiency Index (Observed) Overall Energy Efficiency Index (Technical) The indicators developed include ODEX (ODYSSEE Energy Efficiency IndeX) indicators which are referenced in the Energy End-Use Efficiency and Energy Services Directive (ESD)15. The ODEX indicators are innovative compared to similar indices as they aggregate trends in unit consumption by sub-sector or end-use into one index per sector based on the weight of each sub-sector/end-use in the total energy consumption of the sector. The sectoral indicators can then be combined into an economy-wide indicator. Top-down energy efficiency indices (including ODEX) provide an alternative to the usual energy intensities used to 12 Available from www.seai.ie 13 Bosseboeuf D. et al, (2005), Energy Efficiency Monitoring in the EU-15, published by ADEME and the European Commission. Available from: www.ODYSSEEindicators.org 14 For full details of the project go to www.ODYSSEE-indicators.org 15See http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006L0032 for details and a copy of the Directive. ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 21 assess energy efficiency changes at the sectoral or national level. This is because these indices include effects related only to energy efficiency. It is important to note that ODEX indicators only provide a measurement of the gross energy savings realised within a sector or type of end-use. In addition to savings that result from energy efficiency policies and measures, these savings include a number of factors – for example, price effects and autonomous progress16. They exclude the changes in energy use due to other effects (climate fluctuations, changes in economic and industry structures, lifestyle changes, etc.) at the economy or sectoral level. In the case of Ireland, the contribution from industry to the overall index is an index of intensity at constant structure as opposed to the industry ODEX. The overall energy efficiency index for Ireland is the weighted sum of this industrial index and the indices for the residential and transport sectors. The services sector is not included due to a lack of the sufficiently disaggregated data required to create an ODEX in this sector. Figure 10 presents both the observed and technical overall energy efficiency indicators for Ireland for the period 1995 – 2014. Technical efficiency gains arise from the use of more energy efficient technologies whereas behavioural gains are the result of how technologies are used. The difference between the observed and technical indicators is the influence of behavioural effects, i.e. Ireland would have achieved the greater improvement in energy efficiency but for the increases in energy usage due to behaviour. It is important to note that behavioural effects can also be beneficial – for example, the purchase of more efficient technologies or improvements in insulation. Note that the top-down energy efficiency index indicators are calculated as a three-year moving average to avoid short-term fluctuations due, for example, to imperfect climatic corrections, behavioural factors, business cycles, etc. 2.8Electricity Generation Figure 11 shows the flow of energy in electricity generation17. Total energy inputs to electricity generation in 2014 amounted to 4,364 ktoe, 33% of TPER. The relative size of the useful final electricity consumption compared to the energy lost in transformation and transmission is striking. These losses represent 51% of the energy inputs. The growing contribution from renewables (hydro, wind, landfill gas and biomass) is also notable, as is the dominance of gas in the generation fuel mix. In 2014, natural gas accounted for 45% (1,973 ktoe) of the fuel inputs to electricity generation. In 2014 the share of renewables in the generation fuel mix grew to 14.5% compared with 12.8% in 2013. Overall the use of renewables in the electricity generation fuel mix increased by 12.6% in 2014 compared with 2013. 16 Bosseboeuf D., Lapillonne Dr B., Desbrosses N., (2007), Top Down Evaluative Methods for Monitoring Energy Savings, La Colle-sur-Loup: EMEEES European Expert Group Meeting, 17 Electricity generation is covered by the ETS and as such is not covered by EU Decision 406/2009/EC. Therefore, a CO2 impact comparison with 2005 is not considered in this section. 2 Energy Trends The observed index shows that between 1995 and 2014 there was an 8.8% decrease, which indicates an improvement in energy efficiency. To separate out the influence of behavioural factors, a technical index is calculated and used to better assess the technical energy efficiency progress. As shown in Figure 10, technical efficiency improved by 11% from 1995 to 2014. 22 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 11 Flow of Energy in Electricity Generation 2014 Electricity Imports Wind 442 ktoe 185 ktoe Landfill Gas, Biomass, Biogas and Wastes 152 ktoe Hydro 61 ktoe Own Use / Transmission Loss 262 ktoe Natural Gas 1,973 ktoe Electricity Transformation Loss 1,960 ktoe Transform atio and Transm n, Own Use is 2,222 ktoe sion Losses Primary En er 4,365 ktoe gy Input Final Cons um 2,076 ktoe ption 2 Energy Trends Coal 942 ktoe Fuel Oil 47 ktoe Gasoil and Refinery Gas 13 ktoe Industry 808 ktoe Peat 550 ktoe Note: Some statistical differences and rounding errors exist between inputs and outputs Transport Services 3 ktoe Agriculture 554 ktoe 48 ktoe Residential 663 ktoe Figure 12 shows a similar picture to Figure 11 except that the electricity outputs are shown by fuel used to generate the electricity and as percentages, for the purposes of assessing against the various targets. Renewable generation consists of wind, hydro, landfill gas, biomass (including the renewable portion of wastes and a small amount of biodiesel) and other biogas and, in 2014, in total reached 6,385 GWh, accounting for between one fifth and one quarter (22.7%) of gross electricity consumption compared with 20.1% in 2013. In calculating the contribution of hydropower and wind power for the purposes of Directive 2009/28/EC, the effects of climatic variation are smoothed through the use of a normalisation rule18. Using normalised figures for wind and hydro, renewables also accounted for 22.7% of gross electricity consumption in 2014. The national target is to achieve at least a 40% share by 2020. In 2014, wind generation accounted for 18.2% of electricity generated and as such was the second largest source of electricity generation after natural gas. Figure 12 Flow of Energy in Electricity Generation 2014 – Outputs by Fuel Landfill gas, biomass, Wind 10.1% biogas and wastes 3.5% Electricity Imports 4.2% Hydro 1.4% Electricity Transformation Loss 44.9% (of inputs) Natural gas 45.2% Electricity Generatio n Inputs (100%) Gross Elec tricity Co Natural gas 45.8% nsumptio n (100%) Coal 21.6% Peat 12.6% Fuel Oil 1.1% Gas oil and refinery gas 0.3% Oil 0.7% Landfill gas, biomass, biogas and wastes 2.1% Hydro 2.5% Note: Some statistical differences and rounding errors exist between inputs and outputs. Percentages of inputs on the left refer to percentages of total inputs. Percentages of output, with the exception of electricity transformation loss, refer to percentages of gross electricity generated. Coal 14.3% Electricity imports 7.6% Wind 18.2% Peat 8.8% Renewables as % of gross electricity consumption = 22.7% Renewables as % of gross electricity consumption (normalised) = 22.7% CHP as % of total electricity generation = 7.4% The efficiency of electricity supply shown in Figure 13 is defined as final consumption of electricity divided by the fuel inputs required to generate this electricity and expressed as a percentage. The inputs include wind, hydro and imports which are direct electricity inputs and do not have transformation losses associated with them that is the 18 Article 5 and Annex II of Directive 2009/28/EC on the promotion of the use of energy from renewable sources. 23 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) case with the fossil fuels and combustible renewables. The final consumption excludes the generation plant’s ‘own use’ of electricity and transmission and distribution losses. Hence this is supply efficiency rather than generating efficiency. In 2014, the supply efficiency was 49% whereas the overall generating efficiency was 54%. Figure 13 Efficiency of Electricity Supply 50% 49.1% 48% 46% 44% 42% 40% 2 Energy Trends 38% 36% 34% 32% 30% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 From the mid-1990s onwards the influence of the use of higher efficiency natural gas plants and the increase in production from renewable sources is evident. The sharp rise between 2001 and 2004 (from 35% to 40%) is accounted for, principally, by the coming on stream of new CCGT installations (392 MW in August 2002 and 343 MW in November 2002), an increase in imports of electricity and the closure of old peat fired stations. There was an increase in electricity supply efficiency from 41.9% in 2006 to 43.6% in 2007, due largely to the commissioning of two further CCGT plants, Tynagh (384 MW) in 2006 and Huntstown 2 (401 MW) in 2007, and the increase in renewable electricity. During 2010 the efficiency decreased to 44.6% from a high of 45.5% in 2009 due in part to the reduction in wind and hydro resources and also due to the commissioning phases of two new CCGT power plants in Whitegate and Aghada that came online during the year. In 2014 a new 460 MW CCGT generation plant operated by Endesa in Great Island commenced commissioning phase and went into commercial operation in 2015 while 240 MW of heavy fuel oil generation plant also at Great Island was retired. In 2011, with these new CCGT power plants fully operational and with the increased contribution from wind and hydro, efficiency increased to 47.3%. In 2012 the high price of gas coupled with low prices for coal and CO2 resulted in less gas and more coal and peat being used in electricity generation. This reduced efficiency to 45.6%. 2013 saw somewhat of a reversal of the trend evident in 2012 and, with increased imports, saw the efficiency of supply rise to 48.4% and then to 49.1% in 2014. These shifts in generating technology and indeed fuel mix have also resulted in changes in the CO2 emissions per kWh of electricity supplied, as illustrated in Figure 14. Figure 14 shows as stacked bars the shares of the various fuels contributing to the overall emissions intensity as well as the reduction in intensity as a result of emissions avoided by renewable generation from wind, hydro and other renewables. It is important to note that this graph represents the shares of the fuels to the overall intensity and not the intensity of the generation by the individual fuels themselves. The net overall intensity is shown as a line graph in Figure 14. 24 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 14 CO2 Emissions per kWh of Electricity Supplied; with Contributions by Fuel Coal Peat Oil Natural Gas Non-Renewable (wastes) Wind (avoided) Hydro (avoided) Other Renewables (avoided) Net Overall Intensity 1,000 900 800 g CO2/kWh 700 600 500 456.6 400 300 2 Energy Trends 200 100 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Since 1990 the share of high carbon content fuels, such as coal and oil, has been reducing with a corresponding rise in the relatively lower carbon natural gas, and zero carbon renewables. Imported electricity is also considered zero carbon from Ireland’s perspective under the Kyoto Protocol as emissions are counted in the jurisdiction in which they are emitted. This resulted in the carbon intensity of electricity dropping by 49%, from 896 g CO2/kWh in 1990, to a new low of 457 g CO2/kWh in 2014. With reduced gas and wind, and increased peat and coal use the intensity had increased to 528 g CO2/kWh in 2012 but it has fallen back by 13.8% since then. The reasons for the increase in generating efficiency and decrease in carbon intensity of electricity in 2014 were a: •• 2.9% decrease in coal used in generation; •• 18% increase in hydro generation; •• 13.2% increase in wind generation; •• 8.1% increase in the use of other renewables in generation; Countering these were a: •• 9.4% increase in peat used in generation; •• 38.7% increase in oil used in generation (albeit to a share of just 1.4%); •• 6% reduction in gas use for electricity generation; •• 7.3% increase in non-renewable wastes use for electricity generation. 2.8.1 Combined Heat and Power Combined Heat and Power (CHP) is the simultaneous generation of usable heat and electricity in a single process. In conventional electricity generation much of the input energy is lost to the atmosphere as waste heat. Typically up to 60% of the input energy is lost with as little as 40% being transformed into electricity. CHP systems channel this extra heat to useful purposes so that usable heat and electricity are generated in a single process. The efficiency of a CHP plant can typically be 20% to 25% higher than the combined efficiency of heat-only boilers and conventional power stations. Also, if embedded in the network close to the point of electrical consumption, CHP can avoid some of the transmission losses incurred by centralised generation. Therefore in the right circumstances CHP can be an economic means of improving the efficiency of energy use and achieving environmental targets for emissions reduction. The installed capacity19 of CHP in Ireland at the end of 2014 was 339 megawatt electrical (MWe) (366 units20) – up from 343 MWe (340 units) in 2013 – an increase of 1.5%. Of the 340 units, only 262 were reported as being operational. 19 Megawatt electrical or MWe is the unit by which the installed electricity generating capacity or size of a CHP plant is quantified, representing the maximum electrical power output of the plant. 20 Note that units are distinct from CHP plants or schemes and that there may be more than one CHP unit at a site. 25 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) The operational installed capacity increased by 2.8 MWe, to 311 MWe, in 2014 compared with 2013. Table 6 Number of Units and Installed Capacity by Fuel 2014 Natural Gas Solid Fuels Biomass Oil Fuels Biogas Total Source: SEAI No. of Units Installed Capacity MWe No. of Units % Installed Capacity % 321 313.3 88% 92% 2 3 23 17 366 5.2 5.5 9.0 6.4 339 1% 1% 6% 5% 100% 2% 2% 3% 2% 100% Figure 15 illustrates the contribution from CHP to Ireland’s energy requirements in the period 1994 – 2014. Fuel inputs have increased by 167% (5% per annum) while the thermal and electrical outputs increased by 196% (5.6% per annum) and 693% (10.9% per annum) respectively over the period. This suggests that the overall stock of CHP installations has become more efficient over the period. In 2014 fuel input decreased by 4.0% and thermal output decreased by 6.7%, while electricity generated increased by 0.7%. The large increase in 2006 is accounted for by the Aughinish Alumina plant which came online in that year. Figure 15 CHP Fuel Input and Thermal/Electricity Output 1994 – 2014 7,000 6,000 5,000 GWh 4,000 3,000 2,000 1,000 0 1994 1996 1998 Electricity 2000 2002 Heat 2004 2006 Useful Heat 2008 2010 2012 2014 Fuel Input Figure 16 focuses on CHP generated electricity in Ireland as a proportion of gross electricity consumption (i.e. electricity generation plus net imports) in the period 1990 – 2014. In 2014, 7.4% of total electricity generation was generated in CHP installations compared with 7.3% in 2013. Some CHP units export electricity to the national grid. In 2014 there were 18 units exporting electricity to the grid. These units exported 1,372 GWh of electricity in 2014, a decrease of 0.4% on 2013. 21 Oil products are comprised of LPG, heavy fuel oil, refinery gas and biodiesel. 22 Sustainable Energy Authority of Ireland (2014), Combined Heat and Power in Ireland: Trends and Issues – 2014 Update. Available from: www.seai.ie 2 Energy Trends Natural gas was the fuel of choice for 313 MWe (321 units) in 2014. It is worth noting that there is one single 160 MWe gas plant which dominates. Oil products21 made up the next most significant share with 9.0 MWe (23 units) and the remainder was biogas at 6.4 MWe (17 units), biomass at 5.5 MWe (3 units) and solid fuels at 5.2 MWe (2 units). CHP in Ireland is examined in more detail in a separate SEAI publication22. 26 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 16 CHP Electricity as percentage of Total Electricity Generation 1990 – 2014 9.0% CHP electricity as % of total electricity generated 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2.8.2Primary Fuel Inputs into Electricity Generation The trends in the mix of primary fuels employed for electricity generation are shown in Figure 17. The shift from oil to gas since 2001 is evident, as is the decline of coal since 2005, its revival between 2010 and 2012 and subsequent reduction up to 2014. Figure 17 Primary Fuel Mix for Electricity Generation 6 5 4 Mtoe 2 Energy Trends 8.0% 3 2 1 0 1990 1992 Coal 1994 Peat 1996 Oil 1998 2000 Natural Gas 2002 2004 Renewables 2006 2008 NR Wastes 2010 2012 2014 Net Imports Table 7 shows the growth rates, quantities and shares of the primary fuel mix for electricity generation over the period 1990 – 2014. The primary fuel requirement for electricity generation grew by 71% from 3,062 ktoe in 1990 to a high of 5,237 ktoe in 2001. Between 2001 and 2014 the requirement reduced by 17%, while the final consumption of electricity increased by 15%. In 2014, 4,365 ktoe of energy was used to generate electricity, 0.7% less than in 2013 and 17% less than peak levels in 2001. 27 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) The fuel inputs to electricity generation were one third (33%) of the TPER in 2014. Electricity consumption as a share of TFC increased from 14% to 19% between 1990 and 2014. Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Fossil Fuels (Total) 16.2 0.6 -0.1 -1.0 -6.0 Coal -24.3 -1.2 -0.1 -9.4 2.1 Peat -8.9 -0.4 0.2 -0.2 2.9 Oil (Total) -82.4 -7.0 -5.2 -29.6 -18.6 Fuel Oil -85.8 -7.8 -6.4 -32.1 -17.7 Gas Oil and Refinery Gas 4.0 0.2 18.6 -17.4 -26.8 Gas 134.0 3.6 2.3 8.2 -10.1 Renewables (Total) 952.4 10.3 8.9 15.4 14.4 Hydro 1.7 0.1 -5.7 -1.0 4.3 Wind 35.4 20.4 16.2 Other Renewables 4.8 20.1 14.5 Non-Renewable (Wastes) Combustible Fuels (Total) 21.2 0.8 -0.1 -0.8 -5.4 Electricity Imports (net) 83.6 -25.5 46.2 2014 -2.6 -2.9 8.4 38.7 42.4 67.7 -6.0 12.6 18.2 13.2 8.1 7.3 -2.2 -4.2 Quantity (ktoe) 1990 2014 3,034 3,525 1,245 942 604 550 343 60 334 47 7 8 843 1,973 60 631 60 61 442 128 25 3,034 3,677 185 Total -0.7 3,094 41.1 1.4 0.8 -0.7 -3.0 Shares % 1990 2014 98.1 80.8 40.2 21.6 19.5 12.6 11.1 1.4 10.8 1.1 0.2 0.2 27.2 45.2 1.9 14.5 1.9 1.4 10.1 2.9 0.6 98.1 84.2 4.2 4,365 The main trends are: •• Overall fuel inputs into electricity generation fell by 0.7% in 2014, to 4,365 ktoe, while final consumption of electricity fell slightly, by 0.3%, to 2,076 ktoe (or 24,135 GWh). •• The overall share of fossil fuels used in electricity generation was 81% in 2014 (3,525 ktoe), down from 98% throughout the 1990s. •• Natural gas remains the dominant fuel in electricity generation but its share fell from a peak of 61% in 2010 to 45% in 2014. Natural gas use in electricity generation was 1,973 ktoe in 2014, 6% lower than in 2013. •• Fuel oil had a share in electricity generation of 11% in 1990; this rose to 28% in 1999 but in 2014 was minimal at 1.1%. Consumption of fuel oil in electricity generation in 2014 was 47 ktoe. •• The share of coal used in electricity generation reduced from 40% in 1990 to 22% in 2014. Coal use was at its lowest in 2009 at 775 ktoe but increased by 50%, to 1,160 ktoe, in 2012. In 2014 consumption of coal for electricity generation fell by 2.9% to 942 ktoe. •• Peat consumption in electricity generation increased by 8.4%, to 550 ktoe, in 2014 and accounted for 12.6% of the fuel inputs to electricity generation. •• Renewable energy use for electricity generation increased its share from 1.9% to 14.5% between 1990 and 2014. In 2014 there was a 12.6% increase in renewables’ contribution to the electricity fuel mix due to the increased contribution from hydro, wind and biomass. Wind contribution to electricity generation grew by 13.2% in 2014, hydro grew by 18% and other renewables, in the form of landfill gas, biogas, renewable wastes, grew by 8.1%. Solar photovoltaic is now included in other renewables. •• The use of energy from waste as a fuel source for electricity generation increased by 7.3% in 2014 to 25 ktoe and accounted for 0.6% of all fuel inputs. •• Net electricity imports fell by 4.2% in 2014 to 185 ktoe. The primary energy attributed to hydro and wind is equal to the amount of electrical energy generated, rather than the primary energy avoided through the displacement of fossil fuel based generation23 (see Renewable Energy in Ireland – 2013 Report). It is therefore more common to see the share of hydro and wind reported as a percentage of electricity generated. Electricity generated from hydro accounted for 2.5% of the total and wind accounted for 18.2% in 2014. Overall, the share of electricity generated by renewables was 22.7% in 2014, up from 20.1% in 2013, while the renewables share of energy inputs to electricity generation was 14.5%. Normalising for wind and hydro as per Directive 2009/29/EC the share of electricity generated from renewables in 2014 was also 22.7%. 23 An alternative approach based on primary energy equivalent was developed in a separate report: SEAI (2014), Renewable Energy in Ireland – 2012. Available from http://www.seai.ie/Publications/Statistics_Publications/Renewable_Energy_in_Ireland/ 2 Energy Trends Table 7 Growth Rates, Quantities and Shares of Electricity Generation Fuel Mix (primary fuel inputs) 28 ENERGY POLICY STATISTICAL SUPPORT UNIT 2.9Electricity Demand Figure 18 shows the final electricity consumption in each of the main sectors. The difference between fuel input (see Figure 17) and delivered electricity output (Figure 18) is accounted for by the transformation losses, totalling 1,960 ktoe in 2014, as shown in Figure 11 and Figure 12. This size of the transformation loss is due to electricity in Ireland being predominantly generated thermally (72% in 2014) and therefore actual energy requirement has always been significantly higher than final electricity consumption. This ratio of primary to final energy in electricity consumption reduced from 3.0 in 1990 to 2.1 in 2014. Final consumption of electricity decreased by 0.3% in 2014 to 24,135 GWh with a 0.7% reduction in the fuel inputs to electricity generation. Figure 18 Final Consumption of Electricity by Sector 2.5 1.5 Mtoe 2 Energy Trends 2 1 0.5 0 1990 1992 Industry 1994 1996 Transport 1998 2000 Residential 2002 2004 2006 2008 Commercial/Public Services 2010 2012 2014 Agricultural Final electricity demand peaked in 2008 at 2,294 ktoe and has fallen 9.5% since to 2,076 ktoe. Table 8 shows changes in individual sectors’ electricity demand and the impact on final consumption of electricity. The electricity use in transport includes that used in Dublin by the DART and the Luas. In absolute terms electricity consumption in transport is small at 39 GWh (3 ktoe). This figure doesn’t yet account for road electric vehicles which is currently insignificant. Industry and the services sectors both experienced a growth in electricity demand of 1.1%, increasing to 808 ktoe and 554 ktoe respectively. The residential sector’s electricity use fell by 3.1%, to 663 ktoe, in 2014 and transport fell by 6.6%, a drop of just 0.24 ktoe or 3 GWh. In terms of shares of final electricity use, industry has the largest share at 39% with the residential sector being the second largest at 32%. Table 8 Growth Rates, Quantities and Shares of Electricity Final Consumption Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 2014 Industry 109.5 3.1 -0.1 3.5 0.8 1.1 Transport 144.1 3.8 17.8 -5.0 -3.8 -6.6 Residential 86.0 2.6 3.3 2.6 -2.6 -3.1 Commercial / Public 130.4 3.5 8.7 -3.3 -2.6 1.1 Agriculture 29.8 1.1 2.4 -2.8 0.0 0.0 Total 103.4 3.0 3.7 0.9 -1.3 -0.3 Quantity (ktoe) 1990 2014 386 808 1 3 356 663 240 554 37 48 1,021 2,076 Shares % 1990 2014 37.8 38.9 0.1 0.2 34.9 31.9 23.6 26.7 3.6 2.3 2.10 Energy, Weather and the Economic Downturn In 2008 the economy in Ireland entered a recession and GDP fell, it approached 2005 levels by 2010 before growth was observed again in 2011. Figure 19 shows the trend in GDP in the period 2007 – 2014 as an index relative to 2007 29 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) levels. The impact of the recession on energy demand (TFC) is also clear in Figure 19. Between 2007 and 2009, the economy contracted by 7.7% but by 2014 had recovered to be 1.6% above 2007 level. However, overall energy use has fallen continuously since 2008 and in 2014 was 19% lower than 2008. Figure 19 also provides the trend in final energy intensity (TFC/GDP, the inverse of energy productivity) of the economy. In two of the years shown, 2008 and 2013, the energy intensity grew (by 2.7% and 0.4% respectively) while in all other years it decreased. These trends suggest that while the economic recession clearly affected energy use there were other factors at play, such as weather effects, changes in energy efficiency, fuel mix changes and energy prices, all of which can have an impact on energy use and emissions. Figure 19 also shows an overall energy-price index for Ireland calculated by the International Energy Agency (IEA). This index encompasses the spike in the price of oil in 2008 and its collapse in 2009, the continuing increase in oil and gas prices from 2010 to 2013 and the start of the price drop in both in 2014. High energy prices tend to dampen energy demand. Figure 19 Index of GDP, Final Energy Demand, Final Energy Intensity and Energy Price 2 Energy Trends 130 Index 100 = 2005 120 110 100 90 80 70 2007 2008 GDP 2009 TFC 2010 Energy CO₂ 2011 2012 Final Intensity 2013 2014 Price Source: SEAI, CSO and IEA Figure 20 illustrates more clearly the separate effects that the economy and weather have had on Ireland’s energy demand since 2009. Figure 20 shows the year-on-year percentage change in GDP, degree days (indicator of weather) and final energy consumption for the industry, transport, residential and services sectors. While the recession impacts on energy demand in all sectors, the residential (in particular) and services sectors are also affected by weather, because the significant proportion of energy use in buildings is for space heating, which is clearly dependent on external temperatures. 2008 and 2010 were cold, as indicated by the increase in degree days in those years. This would likely have contributed to an increase in energy demand in the residential sector for those years, despite the recession, as indicated in Figure 20. In 2011 by contrast, the weather was considerably milder than 2010 and energy use in the residential sector decreased by 13.1%. Final energy use continued to fall in 2012, rose in 2013 by 1.3%, and fell again in 2014 by 8.1%. On a weather corrected basis, energy use per household has fallen by 18% since 2009. Changes in the energy demand per household are discussed in Section 4.3.1. The services sector is clearly also dependent on the weather as well as on economic activity. The year 2010 saw a 0.2% contraction in services’ economic activity, but energy demand dropped a greater amount (3.8%) even though it was a relatively cold year. Services energy consumption fell in 2013 by 2.6% and a further 3.6% in 2014, while the economic output of services grew over the two-year period by 6.4%. 30 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 20 Annual Changes in Economic Growth, Weather and Sectoral Energy Demand 20 15 10 % change 5 0 2010 2011 2012 2013 2014 -5 2 Energy Trends -10 -15 -20 GDP Industry TFC Transport TFC Residential TFC Services TFC Degree Days Source: SEAI, CSO and Met Éireann Energy demand in industry and in transport is less dependent on the weather as is illustrated in Figure 20. Energy use in both these sectors fell in 2008 and 2009 as did economic activity. Transport demand fell in the four years up to 2012, while energy demand in industry increased in 2010 by 3.8%. While the economy as a whole contracted in that year, industry economic activity grew by 4%. Industry and transport experienced growth in energy use in 2014 broadly in line with the increase in economic activity. The residential and services sectors on the other hand experienced a fall in energy use in 2014 partly as a result of the milder weather, as signified by the reduction in degree days. 31 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 3 Key Policy Issues The energy trends discussed in Section 2 are analysed to assess performance with regard to Government policies and targets, in particular those detailed in the EU Directives related to renewable energy, energy efficiency and greenhouse gas and transboundary emissions. 3.1 Progress towards Renewable Energy Targets The target for Ireland in the Directive 2009/28/EC is a 16% share of renewable energy in GFC by 2020. The Directive requires each Member State to adopt a national renewable energy action plan (NREAP) to set out Member States’ national targets for the share of energy from renewable sources consumed in transport, electricity and heating in 2020 that will ensure delivery of the overall renewable energy target. These sectoral targets are RES-E (electricity), RES-T (transport) and RES-H (heat) respectively. The contribution from renewables in 1990 was 2.3%, rising to 8.6%24 of GFC25 in 2014. Figure 21 illustrates where the various renewable targets fit within overall energy use in Ireland and the position with regard to progress towards those targets in 2014. Towards the right of the figure the 2014 contribution percentages of renewables are shown relative to the respective amount of final energy that they refer to. Also shown is how these relate to the Directive’s target (see also Table 9). Figure 21 Progress to Targets 2014 Hydro 61 ktoe Electricity Imports (net) 185 ktoe Briquetting 13 ktoe Natural Gas own use / loss 64 ktoe Oil Refining 71 ktoe Electricity Transformation 2,222 ktoe Oil 6,249 ktoe RE = 7.7% of TPER Total Primary Energy Requirement 13,270 ktoe Aviation 745 ktoe RE Directive = 8.6% of GFC Natural Gas 3,721 ktoe Coal 1,262 ktoe Peat 768 ktoe Note: Some statistical differences exist between inputs and outputs. RES-E Normalised wind and hydro. RES-T adjusted to account for double certificates RES-T 5.2% Total Fina l Consum 10,833 kt ption oe RES-E 22.7% Transport (excl. Aviation) 3,777 ktoe RES-H 6.6% Thermal 4,239 ktoe Gross Electricity 2,405 ktoe Towards the left of Figure 21 the overall contribution of renewable energy to TPER is shown at 7.7%. Whilst there is no specific target for this measure it does help to illustrate the position of renewables in the overall energy use in Ireland. Table 9 shows progress towards the individual national modal targets and to the overall Directive target for the period 1990 – 2014. Here the percentages in each row (RES-E, RES-T and RES-H) relate to the specific modal targets and the percentages in the final row relate to the overall target using the definition in Directive 2009/29/EC. 24 Calculated as per Directive 2009/28/EC. 25 Gross Final Consumption (GFC) in the Directive is different from Total Final Consumption (TFC) as conventionally defined in the energy balance. See Glossary of Terms on page 80. Hydro and wind electricity generation are normalised as per the Directive in order to smooth out variations in climate. 3 Key Policy Issues Biomass, Other Renewables Wind 442 ktoe and Wastes 581 ktoe 32 ENERGY POLICY STATISTICAL SUPPORT UNIT Table 9 Renewable Energy Progress to Targets26 % of each target RES-E (normalised) RES-T RES-H Directive (2009/29/EC) 1990 5.3 0 2.6 2000 4.8 0 2.4 2.3 2.0 Progress towards targets 2005 2010 2011 2012 7.2 14.5 17.3 19.5 0 2.4 3.8 4.0 3.5 4.5 4.9 5.1 2.8 5.6 6.5 2013 20.8 4.9 5.5 2014 22.7 5.2 6.6 7.6 8.6 7.1 Targets 2010 2020 15 40 3 10 5 12 16 Source: SEAI Figure 22 shows the contribution as per the Directive methodology from 1990 to 2014 while Figure 23 shows the renewable energy percentage contributions to GFC by mode with RES-E normalised. Figure 22 Renewable Energy (%) Contribution to Gross Final Consumption (Directive 2009/28/EC) 9.0% 8.0% 7.0% 6.0% 3 Key Policy Issues 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 1992 1994 Hydro 1996 1998 Wind Source: SEAI 26 Note: Individual target percentages are not additive. 2000 2002 Biomass 2004 2006 2008 Geothermal 2010 2012 Solar 2014 33 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 23 Renewable Energy (%) Contribution to GFC by Mode 9.0 8.0 2.5% Renewable Contribution to GFC % 7.0 6.0 1.1% 5.0 4.0 3.0 5.0% 2.0 1.0 0.0 1995 RES-H 2000 RES-T 2005 2010 RES-E% Normalised Source: SEAI A more detailed discussion of renewable energy in Ireland can be found in SEAI’s publication Renewable Energy in Ireland27. This section presents key graphs and updates where available from the renewables report. 3.1.2.1 Electricity from Renewable Energy Sources (RES-E) Ireland’s NREAP specified a target of 40% electricity consumption from renewable sources by 2020. The total contribution from renewable energy to gross electricity consumption in 2014 was 22.7% (compared with 20.1% in 2013 and 4.9% in 1990). Using normalised hydro and wind figures as specified in EU Directive 2009/28/EC the share in 2014 was also 22.7%. The share of electricity from renewable energy has more than quadrupled between 1990 and 2014 – from 4.9% to 22.7% – an increase of almost 18 percentage points over 24 years. In absolute terms there has been an ninefold increase (816% or 810% normalised) in the volume of renewable electricity generated. Most of this increase has taken place since 2000 and the vast majority has been from wind energy. Figure 24 and Table 10 shows how electricity production from wind energy has increased to the point that it accounted for 81% of the renewable electricity generated in 2014. Electricity generated from biomass accounted for 8% of renewable electricity in 2014. Biomass consists of contributions from solid biomass, landfill gas, the renewable portion of waste and other biogas. Wind, hydro and biomass-generated electricity in 2014, respectively, accounted for 18.2%, 2.6% and 1.9% of Ireland’s gross electricity consumption. 27 Available from www.seai.ie/statistics. 3 Key Policy Issues 1990 34 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 24 Renewable Energy Contribution to Gross Electricity Consumption (RES-E normalised) 24% 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1990 1992 1994 1996 3 Key Policy Issues Hydro (normalised) 1998 2000 2002 Wind (normalised) 2004 2006 Landfill Gas 2008 2010 Biogas 2012 2014 Biomass Table 10 Renewable Energy Contribution to Gross Electricity Consumption (RES-E normalised) Renewable Electricity % Hydro (normalised) Wind (normalised) Biomass Landfill Gas Biogas Overall 1990 5.3 0 0 0 0 2000 3.4 1.0 0 0.4 0 2005 2.7 4.0 0 0.4 0.1 2010 2.6 10.8 0.4 0.6 0.1 2011 2.7 13.4 0.5 0.6 0.1 2012 2.7 15.2 0.9 0.6 0.1 2013 2.6 16.4 1.1 0.6 0.1 2014 2.6 18.2 1.2 0.6 0.1 5.3 4.8 7.2 14.5 17.3 19.5 20.8 22.7 Figure 25 shows the annual growth in installed wind generating capacity and overall cumulative capacity since 2000. By the end of 2014 the installed capacity of wind generation reached 2,211 MW. The peak recorded wind power output was 2,035 MW delivered on 18th November 201528. Based on data published on EirGrid’s and ESB Network’s websites (September 2015) there are 268 MW of wind generation contracted for connection before the end of 2015 and a further 1,027 MW by the end of 2016. There are an additional 475 MW contracted for connection beyond then. 28 Wind generation data, EirGrid, http://smartgriddashboard.eirgrid.com/#roi/wind 35 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 25 Installed Wind Generating Capacity 2000 – 201429 2500 350 2000 250 1500 200 150 1000 100 Total Wind Capacity (MWe) Annual Wind Capacity Growth (MWe) 300 500 50 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Annual Wind Growth 2009 2010 2011 2012 2013 2014 Total Wind Installed Capacity The output from wind and hydro generation is affected by the amount of the resource (wind and rainfall) in a particular year. It is also affected by the extent of outages of the plant for reasons such as faults, maintenance and curtailment. An indication of how these factors affect the output of wind and hydro can be obtained by examining the capacity factor for these generation types. The capacity factor is the ratio of average electricity produced to the theoretical maximum possible. For wind, it is the ratio of the actual electricity generated to the theoretical maximum possible for the installed capacity, as if that capacity were generating at a maximum for the full year. The rate of capacity increase each year can significantly impact on the capacity factor in periods of large annual capacity increases. If significant capacity is added late in the year this would artificially reduce the capacity factor for the year. To mitigate this the wind capacity factors in Table 11 are calculated using the average of the installed capacity in any given year and the previous year. Table 11 Annual Capacity Factor for Wind and Hydro Generation in Ireland 2000, 2005 – 2014 Capacity Factor 2000 Wind 30% Hydro 41% Source: EirGrid and SEAI 2005 30% 31% 2006 30% 35% 2007 28% 33% 2008 29% 47% 2009 29% 44% 2010 24% 29% 2011 33% 34% 2012 27% 39% 2013 28% 29% 2014 29% 34% The average countrywide wind capacity factor fell between 2006 and 2009 but averaged around 29%. It was 24% in 2010 largely due to the lack of wind. The hydro capacity was also at its lowest level since 2003 due to the low level of rainfall in 2010. The wind capacity factor was 33% in 2011 due to the increased wind resource and was 29% in 2014. The hydro capacity factor was 34% in 2014. 3.1.2.2 Heat from Renewable Energy Sources (RES-H) Ireland’s NREAP specified a target of 12% renewable heat by 2020. Figure 26 shows the contribution from renewable energy to heat or thermal energy uses. The increasing activity in specific sub-sectors of industry, as well as some incentives for residential biomass heat systems, has led to renewable energy use more than doubling, from 108 ktoe in 1990 to 280 ktoe in 2014 (a growth of 160%). In 2014 renewable thermal energy increased by 15% in absolute terms relative to 2013 and the renewable share of thermal energy stood at 6.6% in 2014. 29 Installed Wind Report, Eirgrid, http://www.eirgridgroup.com/site-files/library/EirGrid/ConnectedTSOWind-Farms18thSept2015.pdf and ESB Networks, http://www.esb.ie/esbnetworks/en/generator-connections/Connected-Contracted-Generators.jsp 3 Key Policy Issues Source: Eirgrid 36 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 26 Renewable Energy Contribution to Thermal Energy (RES-H) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 1990 1992 1994 3 Key Policy Issues Biomass 1996 1998 2000 Biogas 2002 2004 Solar 2006 2008 2010 2012 2014 Geothermal Following a decline in the contribution from renewable energy to thermal energy in the early 1990s (from 2.6% in 1990 to 2.1% in 1995), RES-H has grown between 2000 and 2014, from 2.4 % to 6.6%. This growth, dominated by solid biomass30, is mostly due to the increased use of wood waste as an energy source in the wood products and food sub-sectors of industry. In addition, recent growth in renewable energy use in the residential and services sectors can be attributed to the support of grant schemes and revisions to building regulations requiring a share of the energy demand to come from renewable sources. Figure 27 shows the composition of biomass in TFC in 2014. Approximately half (47%) of all solid biomass is consumed in the wood and wood products industry sub-sector where wood wastes or wood residues of that sector are being combusted for heat. Similarly tallow, a by-product or output of the food sector, is combusted for heat in that sector and is also being refined for use as a biofuel in transport. Tallow accounts for 14% of all solid biomass. A further 13% in 2014 of solid biomass is consumed in the cement industry in the form of the renewable portion of solid wastes. Wood chips, pellets and briquettes make up approximately 20% of all the solid biomass consumed in Ireland. The remaining 6% is an estimate of the non-traded wood logs which are being used in open fires or stoves. The nontraded wood consumption is estimated in the absence of available data and varies with different methodologies. However, as this non-traded wood is only a small part of the total solid biomass consumption, the relative variation in estimates is small relative to the overall total solid biomass consumption used for the calculation of RES-H. 30 Solid biomass covers organic, non-fossil material of biological origin which may be used as fuel for heat production. It is primarily wood, wood wastes (firewood, wood chips, barks, sawdust, shavings, chips, black liquor [a recycled by-product formed during the pulping of wood in the paper-making industry] etc.), other solid wastes (straw, oat hulls, nut shells, tallow, meat and bone meal, etc.) and the renewable portion of industrial and municipal wastes. 37 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 27 Composition of Biomass used for Heat in TFC in 2014 Renewable portion of wastes 13% Residential non-traded wood 6% Residential traded wood (chips/pellets/ briquettes/logs) 6% Tallow 14% Non-residential traded wood (chips/pellets/ briquettes/logs) 14% Source: SEAI 3.1.2.3 Transport Energy from Renewable Sources (RES-T) Directive 2009/28/EC established a mandatory minimum 10% target for the contribution of renewable energy in the final consumption of energy in transport by 2020. According to the Directive for this target a weighting of 2.5 is applied to the electricity from renewable energy sources consumed by electric road vehicles, where the contribution is calculated as the share of electricity from renewable energy sources as measured two years before the year in question. Also supported through a weighting factor of 2 are second generation biofuels, and biofuels from waste; that is biofuels that diversify the range of feedstocks used to become commercially viable should receive an extra weighting compared with first generation biofuels. These weighting factors are used for the calculation of RES-T only and do not apply when calculating the transport contribution to the overall RES share. The figure for renewables in transport energy (RES-T) in 2014 was 3.1%, or 5.2% when the weightings for double certificates are applied in accordance with the Directive. In order to provide incentives to achieve the 2020 target, a Mineral Oil Tax Relief Scheme was introduced in 2005. In 2010 a biofuel obligation scheme was established which required fuel suppliers and consumers to include, on average, 4% biofuel by volume (equivalent to approximately 3% in energy terms) in their annual sales. The biofuel obligation scheme is a certificate based scheme which grants one certificate for each litre of biofuel placed on the market in Ireland; two certificates are granted to biofuel which is produced from wastes and residues. Oil companies and consumers are required to apply to the National Oil Reserves Agency (NORA) for certificates and demonstrate that the quantities of biofuel for which they are claiming certificates are accurate. Since the introduction of the Sustainability Regulations (SI 33 of 2012) in 2012, the companies are also required to demonstrate that the biofuel that is being placed on the market is sustainable. Biofuel that is not deemed to be sustainable will not be awarded certificates and cannot be counted towards the biofuel obligation. The obligation was increased to 6% for 2013 and 2014. The Department of Communications, Marine and Natural Resources opened a consultation in October 2015 on increasing the obligation rate to 7–8% from 2016. 3 Key Policy Issues Boardmills, Sawmills and CHP 47% 38 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 28 Renewable Energy as a Proportion of (Petrol and Diesel) Transport (RES-T) 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2002 2003 2004 2005 2006 2007 2008 3 Key Policy Issues Biofuels Share 2009 2010 2011 2012 2013 2014 Weighted Biofuels Share In absolute terms, biofuels in transport increased from 1 ktoe in 2005 (0.03%) to 98 ktoe in 2011 (2.6% of transport energy). The quantity fell in 2012 to 85 ktoe mainly as a result of the majority of biodiesel qualifying for double certificates, thereby allowing the obligation to be met with certificates but causing the actual volume of biofuel to fall. Actual volumes increased again in 2013 and 2014 by 20% and 14% respectively, to reach 117 ktoe (3.1% of transport energy). In 2014, 86% of the biodiesel used for road transport was eligible for double certificates, down from 99% in 2013. It is evident from Figure 28 that the growth coincided with the introduction of tax relief support for biofuels, with slow growth, from 2004 to 0.06% in 2006, followed by an increase to 1.2% in 2008, 1.5% in 2009 and 2.4% in 2010. The Mineral Oil Tax Relief scheme ended in 2010 with the introduction of the biofuels obligation scheme. The figure for renewables in transport energy (RES-T) in 2014 was 3.1%, or 5.2% when the weightings for double certificates are applied in accordance with the Directive. Table 12 Biofuels Growth in ktoe and as a Proportion of Road and Rail Transport Energy 2005 – 2014 Fuel Petrol (ktoe) Diesel (ktoe) Biofuels (ktoe) Petrol plus Diesel Biofuel Penetration Weighted biofuels (ktoe) Weighted biofuels share Source: SEAI 2005 1,822 2,378 1.1 4,200 0.0% 1 0.0% 2006 1,849 2,590 2.7 4,440 0.1% 3 0.1% 2007 1,886 2,759 21.5 4,644 0.5% 22 0.5% 2008 1,798 2,615 55.6 4,413 1.2% 56 1.3% 2009 1,636 2,378 77.4 4,015 1.9% 77 1.9% 2010 1,478 2,236 92.6 3,713 2.4% 93 2.4% 2011 1,399 2,221 97.8 3,621 2.6% 138 3.8% 2012 1,272 2,224 84.9 3,497 2.4% 140 4.0% 2013 1,197 2,368 102.2 3,566 2.8% 176 4.9% 2014 1,134 2,519 116.2 3,652 3.1% 193 5.2% 3.1.1 CO2 Displacement and Avoided Fuel Imports The avoided carbon emissions and displacement of fossil fuel imports by renewable energy generation are estimated using the Primary Energy Equivalent approach. The results obtained using this methodology have been further refined, using the results of a more detailed dispatch model of the operation of the entire all-island electricity system in the year 2012, so that the effects of ramping and cycling of fossil fuel plants are accounted for31. Figure 29 shows the trend in avoided CO2 emissions from renewable energy for the period 1990 – 2014. The estimated amount of CO2 avoided from renewable energy increased by 482% over the period 1990 – 2014, reaching 3,319 kt CO2 as illustrated in Figure 29. The emissions avoided from wind were most significant again in 2014, at 1,851 kt CO2, followed by hydro at 283 kt CO2, solid biomass at 274 kt CO2 and liquid biofuels used in transport at 243 kt CO2. 31 See the SEAI reports Quantifying Ireland’s Fuel and CO2 Emissions Savings from Renewable Electricity in 2012 and Renewable Energy in Ireland 2012 for further details on the methodologies used to calculate the avoided emissions. 39 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) In relation to the displacement of fossil fuels by renewable energy, it is estimated that in 2014 approximately €255 million in fossil fuel imports were avoided, of which €200 million was avoided by wind generation. The displacement of fuel imports is calculated by estimating how much extra fossil fuel would have had to be imported had there been no renewable generation in 2014. The estimates are based on the use of marginal generation fuel that would otherwise have been required to produce what had been generated by renewable energy. Figure 29 Avoided CO2 from Renewable Energy 1990 – 2014 3,500 3,000 2,500 kt CO2 2,000 1,500 1,000 0 1990 1992 Solid Biomass (H) Landfill Gas (E) 1994 1996 Biogas (H) Hydro (E) 1998 2000 2002 Geothermal (H) Wind (E) 2004 2006 2008 Solar Thermal (H) Solid Biomass (E) 2010 2012 2014 Liquid Biofuels (T) Renewable Wastes (E) 3.2Greenhouse Gas Emissions Targets In 2008, the EU agreed a Climate Energy Package that included a target to reduce greenhouse gas (GHG) emissions across the EU by 20% below 1990 levels by the year 2020. This resulted in two specific pieces of GHG emissions legislation affecting Ireland: •• Directive 2009/29/EC requiring Emissions Trading Scheme (ETS) companies to reduce their emissions by 21% below 2005 levels by 2020; •• Decision 406/2009/EC requiring Ireland to reduce non-ETS emissions by 20% below 2005 levels by 2020. Figure 30 shows GHG emissions by source for 1990 and provisional figures for 2014 as reported by the Environmental Protection Agency (EPA). Figure 30 Greenhouse Gas Emissions by Source Waste 3% Base year (1990) Waste 2% Agriculture 33% Agriculture 36% Energy-related 55% Industrial Processes 6% Source: Based on EPA data 2014 Provisional 56.7 Mt CO2 Energy-related 60% Industrial Processes 5% 58.2 Mt CO2 3 Key Policy Issues 500 40 ENERGY POLICY STATISTICAL SUPPORT UNIT It is evident from Figure 30 that energy-related emissions contributed a higher share towards total national emissions in 2014 compared with 1990. The share of GHG emissions arising from energy-related activities was 60% in 2014 compared with 55% in 1990. The share from agriculture dropped from 36% to 33% in the same period. It is interesting to note that for the EU as a whole, energy production and use represented 79% of GHG emissions in 1990. The significant role of agriculture in the Irish economy underlies Ireland’s variance from the EU average. Figure 31 shows the sectoral breakdown of energy-related CO2 emissions (which represent 96% of energy-related GHG emissions with the remaining 4% accounted for by energy-related nitrous oxide [N2O] and methane [CH4]). Energy-related CO2 emissions in 2014 were 17% higher than 1990 levels. Between 2005 and 2014 energy-related CO2 emissions fell by 23%. Figure 31 Energy-Related CO2 Emissions by Sector32,33 50 45 40 35 Mt CO2 30 25 3 Key Policy Issues 20 15 10 5 0 1990 1992 1994 Industry 1996 1998 Transport 2000 2002 2004 Residential 2006 2008 Services 2010 2012 2014 Agriculture Table 13 shows Non-ETS sectors’ (including non-ETS industry) energy-related CO2 emissions decreased by 1.5% per annum between 2005 and 2010, and 3.8% per annum between 2010 and 2014, with emissions falling by 1.4% in 2014. Non-ETS energy-related CO2 emissions are now 21% below 2005 levels. Under EU Decision 406/2009/EC there is a requirement for Ireland to achieve a 20% reduction in total non-ETS GHG emissions (including, notably, methane emissions from agriculture) on 2005 levels by 2020. The emissions trading sector has experienced a 27% fall in energy-related emissions since 2005 and emissions increased by 5% in 2014 compared with the previous year. The share of emissions covered in the ETS in overall energy-related emissions stands at 40% in 2014. Table 13 Growth Rates, Quantities and Shares of ETS and non-ETS Energy-Related CO2 since 2005 ETS CO2 non-ETS CO2 Total Energy-Related CO2 Growth % 2005 – 2014 -27.4 -20.6 -22.8 Average annual growth rates % ‘05 – ‘10 ‘10 – ‘14 2014 -3.6 -3.4 -1.9 -1.5 -3.8 -1.4 -2.5 -3.2 -1.2 Shares % 2005 2014 41.7 39.5 58.3 60.5 The growth rates for the individual sectors are presented in Table 14. 32 Figure 31 and Table 14 are based on SEAI estimates and use a different methodology to that used by EPA for compiling the national inventory. International air transport emissions are excluded from the national GHG emissions inventory in accordance with the reporting procedures of the UNFCCC guidelines and are also excluded here. 33 Emissions for agriculture shown in the chart and the table are for energy-related emissions only. 41 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Table 14 Growth Rates, Quantities and Shares of Primary Energy-Related CO2 by Sector Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Industry 0.7 0.0 -1.6 -3.7 -2.3 Transport 120.2 3.3 4.4 -2.4 -0.5 Residential -15.4 -0.7 1.2 0.5 -6.9 Commercial / Public -1.3 -0.1 3.1 -4.8 -6.3 Agriculture and Fisheries -28.3 -1.4 1.0 -5.7 -6.3 2014 0.4 3.9 -8.4 -4.2 -7.8 Quantity (kt) 1990 2014 7,899 7,958 6,043 13,309 10,764 9,103 4,730 4,668 1,133 812 Shares % 1990 2014 25.8 22.2 19.8 37.1 35.2 25.4 15.5 13.0 3.7 2.3 The most significant area of growth overall since 1990 has been in the transport sector, where CO2 emissions in 2014 were 13.3 Mt, 120% higher than in 1990 (3.3% average annual growth rate). In 2007 they were 184% higher. Transport energy-related CO2 emissions fell for the first time in 2008, by 5.2%. The reduction was greater in 2009 with a fall of 11.6% followed by smaller reductions of 6.3% in 2010, 3.1% in 2011 and 5.4% in 2012. Overall between 2007 and 2014 transport energy-related CO2 emissions fell by 22%. Transport emissions grew by 3.9% in 2014. Energy use in transport accounted for over one third (37%) of energy-related CO2 emissions in 2014. Transport is by far the largest CO2 emitting sector – amounting to 1.7 times the energy-related CO2 emissions of industry. There has been very limited decoupling of CO2 emissions from transport energy consumption since 1990. The residential sector experienced a decrease of 8.4% in primary energy-related emissions during 2014, to 9.1 Mt, and services experienced a decrease of 4.2%, to 4.7 Mt. In both these sectors a significant portion of energy use relates to space heating. Therefore, when looking at yearly changes it is important to take the weather into account as well as other factors such as the fuel mix at the household level and the emissions intensity of electricity generation. When taking weather into account the change in residential and services energy-related emissions in 2014 were a fall of 2.7% and an increase of 1.1% respectively. Agriculture and fisheries’ energy-related CO2 emissions fell by 7.8% in 2014 but the sector’s share of these emissions is small at 2.3% (0.8 Mt). This is also small compared to other agriculture-related GHG emissions due primarily to livestock and also fertiliser use. Figure 32 illustrates the variations in emissions by mode of energy use. Here the emissions are allocated according to whether the energy used is: for transport; electricity; or thermal energy. These modes also represent distinct energy markets. The graph presents the emissions at five-yearly intervals up to 2010, plus 2014. In 2014, the shares of energy-related CO2 emissions from transport, electricity and thermal applications were 35.0%, 31.3% and 33.7% respectively. 3 Key Policy Issues Energy-related CO2 emissions increased in industry in 2014 by 0.4%, to 7.96 Mt. Under the ETS only the emissions directly generated on site by industrial entities are taken into account. If upstream electricity emissions are omitted industry experienced an increase in CO2 emissions of 2.1% in 2014. This change in emissions happened in the context of a 7% increase in the economic output of industry. 42 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 32 Energy-Related CO2 Emissions by Mode of Energy Application 18 16 14 12 Mt CO2 10 8 6 4 2 0 1990 1995 3 Key Policy Issues Transport 2000 2005 Electricity 2010 2014 Thermal The growth in emissions related to mobility (153% over the period to 2005) is again striking, although fell after 2008 they have risen again since 2013 and are back to 2002 levels (120% above 1990). Electricity was the dominant mode in terms of emissions from 1996 until 2002. Transport became the dominant mode between 2006 and 2009 and although thermal emissions made up the largest share (35%) of all energy-related emissions in 2010 due to the cold weather, in 2014 transport was the dominant mode with 35% of all energy-related emissions. In 2012, energy-related emissions from electricity increased from the 2011 level by 6.9%, to 12.9 Mt CO2, while final consumption of electricity fell by 2.9%, causing an increase in the emissions intensity of electricity. This increase in emissions intensity was caused primarily by the increased share of coal generation at the expense of gas generation, coupled with a small drop in wind generation. The share of coal in the generation mix increased from 20% to 25% and the gas share fell from 56% to 49% (see Figure 17 and Table 7). This trend was reversed in 2013 and 2014 when the coal share fell back to 22%. Gas continued to fall, to 45%, and with increased wind generation and electricity imports, energy-related emissions from electricity fell by 12% after 2012. The net result of this was that the CO2 intensity of electricity fell to its lowest level ever of 457 g CO2/kWh in 2014, as shown in Figure 14. Overall, electricity generation emissions were 6.3% above 1990 levels in 2014. Emissions from thermal energy applications fell by 6.5% in 2014 to 11.5 Mt and overall the thermal mode emissions were 17% below 1990 levels. Given the policy focus on the non-ETS34, Figure 33 shows the trend in energy-related CO2 emissions for the transport, residential, services and agriculture sectors since 1990 and non-ETS industry from 2005 onwards. This excludes emissions associated with electricity usage by these sectors as these emissions are included in emissions trading. The historical data are not sufficiently disaggregated to include, prior to 2005, the energy-related CO2 emissions associated with thermal energy usage by manufacturing companies that are not participating in emissions trading. 34 EU Decision 406/2009/EC. 43 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 33 Non Emissions Trading Energy-Related CO2 (non-ETS industry from 2005 onwards)35 30 30000 25 25000 2020 Target: 20% below 2005 level 20000 15 15000 10 10000 Services Residential Transport 2014 2012 2010 2008 2006 2004 2002 2000 Agriculture Target 3.2.1 Transboundary Gas Emissions Emissions of sulphur dioxide (SO2) and nitrogen oxides36 (NOX) from energy use are associated with acid rain, smog and other environmental issues (including acidification and eutrophication) that are commonly described as air quality issues. Under Article 4.1 of the Directive 2001/81/EC, Member States must limit their annual national emissions of the pollutants sulphur dioxide (SO2), nitrogen oxides (NOx), ammonia (NH3) and volatile organic compounds (VOC). Table 15 shows the emission levels for SO2 and NOx in 2013 as well as the 2010 ceiling limit set in the Directive. Table 15 SO2 and NOx Emissions and NEC Directive Ceilings for 201037 1990 (kt) 2013 (kt) 2010 Ceiling (kt) % above 2010 Ceiling NOX 140 76.5 65 17.8% SO2 183 25.4 42 - Source: EPA SO2 levels in Ireland fell by 86% between 1990 and 2013. Emissions from power generation fell by 92% over the period as a result of the installation of abatement equipment and the switch from oil to natural gas. Reductions in the order of 77% in SO2 emissions in the residential and services sectors and an 85% reduction in industry were achieved over the period through the use of low sulphur coal and a switch to natural gas from oil. NOx emissions contribute to the acidification of soils and surface waters, tropospheric ozone formation and nitrogen saturation in terrestrial ecosystems. Power generation plants and motor vehicles are the principal sources of NOx, through high-temperature combustion. NOx emissions in Ireland decreased by 45% between 1990 and 2013 and have decreased by 35.4 kt, or 32% since 2008. These reductions were achieved due to improved abatement in the Moneypoint power plant, reduced demand for clinker/cement and a reduction in fuel used in road transportation. The latest estimate is 76.5 kt in 2013, which is an increase of 1% on the previous year and was due to an increase in emissions from transport and an increase in clinker production in the cement industry. In 2013, NOx emissions were 17.8% above the 2010 ceiling. The transport sector, which mainly consists of road transport, is the principal source of NOx emissions, contributing approximately 53% of the total in 2013. The industrial and power generation sectors are the other main sources of NOx emissions, with contributions of 16% and 11% respectively in 2013. The remainder of NOx emissions emanate from the residential/commercial and the agricultural sectors, which together produced around 20% of the total in 2013. See http://www.epa.ie/pubs/reports/air/airemissions/NECD%20Summary%20Report%202015.pdf for more detail. 35 The 2020 target of 20% below 2005 levels refers to total GHG emissions and not just energy-related CO2 emission. While there’s no specific target for energy-related CO2, the datum of 20% below 2005 levels is shown here for illustrative purposes. 36 Collective term for nitric oxide (NO) and nitrogen dioxide (NO2) 37See http://www.epa.ie/downloads/pubs/air/airemissions/ 3 Key Policy Issues Industry non-ETS (2005 on) 1998 0 1996 0 1994 5000 1992 5 1990 Mt CO2 20 44 ENERGY POLICY STATISTICAL SUPPORT UNIT 3.3Energy Security Energy security relates to import dependency, fuel diversity and the capacity and integrity of the supply and distribution infrastructure. Ireland’s energy security is closely linked to EU security of supply, but import dependency is examined here for Ireland in its own right. Energy security is treated in more detail in a separate SEAI publication38. Figure 34 illustrates the trend in import dependency since 1990, comparing it with that for the EU as a whole. Domestic production accounted for 32% of Ireland’s energy requirements in 1990. However, since the mid1990s import dependency has grown significantly, due to the increase in energy use together with the decline in indigenous natural gas production at Kinsale since 1995 and decreasing peat production. Imported oil and gas accounted for 74% of TPER in 2014, compared with 50% in the early 1990s. Ireland’s overall import dependency reached 90% in 2006. It has varied between 85% and 90% since then, and was at 85% in 2014. It is estimated that in 2014 the cost of all energy imports to Ireland was approximately €5.7 billion, down from €6.5 billion (revised) in 2013, due mainly to falling oil and, to a lesser extent, gas import prices. This trend reflects the fact that Ireland is not endowed with significant indigenous fossil fuel resources and has only in recent years begun to harness significant quantities of renewable resources. Figure 35 shows the indigenous energy fuel mix for Ireland over the period. The reduction in indigenous supply of natural gas is clearly evident from the graph as is the switch away from peat. Production of indigenous gas decreased by 92% over the period since 1990, to 123 ktoe. Renewable energy in contrast increased by 431% to 891 ktoe. Indigenous production peaked in 1995 at 4,105 ktoe and there has been a 50% reduction since then to 2,048 ktoe. Figure 34 Import Dependency of Ireland and EU 90% 80% Import Dependency 3 Key Policy Issues Peat production was depressed in 2012 due to the very wet summer of that year. Production was down 59% in 2012 compared with 2011. In contrast, the summer of 2013 provided very good harvesting conditions for peat and as a result production was 310% above 2012 levels, at 1,292 ktoe, with a considerable amount of the production going to building up stock levels. Production in 2014 was 971 ktoe. 70% 60% 50% 40% 1990 1992 1994 1996 1998 2000 Ireland 2002 2004 2006 2008 2010 2012 2014 EU Source: SEAI and Eurostat The share of the total indigenous fuels contribution from native gas was 6% in 2014, compared with 54% in 1990. The share of peat increased from 41% in 1990 to 47% in 2014 but in absolute terms peat production fell by 31%. Renewable energy accounted for 44% of indigenously produced energy in 2014. Developments that are likely to affect this trend include the expected commencement of production from the Corrib Gas Field in 2015/16 and the targets for increasing the deployment of renewable energy. 38 Sustainable Energy Ireland (2015), Energy Security in Ireland, www.seai.ie 45 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 35 Indigenous Energy by Fuel39 4.5 4.0 3.5 3.0 Mtoe 2.5 2.0 1.5 1.0 0.5 0.0 1992 1994 Gas 1996 1998 2000 Peat 2002 Coal 2004 2006 2008 2010 Renewables 2012 2014 NR(W) Figure 36 shows the trend for net fuel imports (imports minus exports) over the period 1990 – 2014. The growing dependence on oil due largely to an increase in energy use in transport is the most striking feature up until 2008 and the subsequent fall off in oil imports is a result of the economic downturn. There was a 117% increase in total net imports from 1990 to 2008, with an 87% increase in net imports of oil. Between 2008 and 2014 net imports have fallen by 23% with oil imports falling 29%. In 2014 net imports were 69% above 1990 levels while oil imports were up 32%. The decline of indigenous natural gas reserves at Kinsale is also indicated by the growth in imported natural gas in the latter part of the decade. Coal imports have remained stable over the period, reflecting the base load operation of Moneypoint electricity generating plant. In 2014, oil, gas and coal accounted for 56%, 31% and 10% of net imports respectively. Other contributions to the reduction in import dependency in 2014 were: •• Coal imports were down 18% to 1,216 ktoe; •• Oil imports were down 4.7% to 6,507 ktoe; •• Natural gas imports were down 3.4% to 3,590 ktoe; •• Electricity imports were down 4.2% to 185 ktoe. Countering this was a 16% increase in renewable energy imports (biomass and biofuels). 39 NR(W) is non-renewable energy from wastes. 3 Key Policy Issues 1990 46 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 36 Imported Energy by Fuel 16 14 12 Mtoe 10 8 6 4 2 0 1990 1992 1994 1996 3 Key Policy Issues Coal Oil 1998 2000 Gas 2002 2004 2006 Renewables 2008 2010 2012 2014 Electricity 3.4 Cost Competitiveness Energy use is an important part of economic activity and therefore the price paid for energy is a determining factor in the competitiveness of the economy. Ireland has a high import dependence on oil and gas and is essentially a price taker on these commodities. The EU has introduced competition into the electricity and gas markets through the liberalisation process in order to reduce energy costs to final consumers. Since 2010, energy prices40 in Ireland have increased by 19% in real terms, compared with an average rise of 7.6% in OECD Europe and a 5.8% increase in the US over the same period based on data from the IEA. In 2014, overall energy prices in Ireland were 2.2% lower than in 2013, compared with a fall of 2.4% in OECD Europe and a 2.3% drop in the US. These price trends reflect Ireland’s heavy dependence on imported oil and gas as these were the main drivers of global energy prices over this period. Crude oil prices were at around $109/barrel for the first half of 2014. However, from July onwards the price fell steadily to reach $55/barrel by the end of December and averaged $89/barrel for the second half of the year. The price of oil continued to fall in January 2015 to reach a low of $46/barrel, before levelling off at the $50 to $60 dollar range and falling below €50 at the end of the 3rd quarter. The price of natural gas at the UK Balancing Point was on average 22% lower in 2014 compared with 2013. SEAI publishes biannual reports titled Understanding Electricity and Gas Prices in Ireland41 based on the methodology for the revised EU Directive on the transparency of gas and electricity prices42, which came into effect on the 1st January 2008. These reports focus specifically on gas and electricity prices using data published by Eurostat and are a useful reference on cost-competitiveness. This section presents comparisons of the cost of energy in various forms in Ireland and compares prices in OECD Europe and the US. The source of the data presented here is the IEA’s Energy Prices and Taxes. This data source was chosen because it is produced quarterly and the latest complete data is available for the first quarter of 2015. Prices shown are US dollars and are in current (nominal) money43. Relative price increases since 2010, however, are tabulated for EU-15 countries and the US in index format in both nominal and real terms. 40 41 42 43 International Energy Agency, 2014, Energy Prices and Taxes - 2nd Quarter 2014, http://www.iea.org/W/bookshop/add.aspx?id=636 Sustainable Energy Authority of Ireland (various dates), Understanding Electricity and Gas Prices in Ireland, www.seai.ie http://europa.eu/legislation_summaries/energy/internal_energy_market/l27002_en.htm Nominal and real values: Nominal value refers to the current value expressed in money terms in a given year, whereas real value adjusts nominal value to remove effects of price changes and inflation, to give the constant value over time indexed to a reference year. 47 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 3.4.1 Energy Prices in Industry Figure 37 Electricity Prices to Industry 250 US$/MWh excluding taxes 200 150 100 50 Ireland OECD Europe United States Source: Energy Prices and Taxes © OECD/IEA, 2015 OECD Europe Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain Sweden United Kingdom United States Table 16 Electricity Price to Industry Increase since 2010 1st qtr 2015 114 (nominal) 92 100 85 105 122 128 120 123 124 86 97 125 117 80 121 96 1st qtr 2015 107 (real) 88 99 79 99 119 124 121 116 118 84 94 124 111 79 115 91 Index 2010 = 100 Source: Energy Prices and Taxes © OECD/IEA, 2015 Table 16 shows that electricity prices to Irish industry increased by 16% in real terms between 2010 and early 2015, the sixth highest for the countries listed. The fuel mix for electricity generation is one factor that has a key bearing on the variation in the price of electricity. In the EU, Ireland has close to the highest overall dependency for electricity generation on fossil fuels at 68% behind the Netherlands at 80%, Cyprus at 92% and Malta at 98%. Ireland also has a high dependency on oil and gas generation at 49%. Apart from Malta and Cyprus, only Lithuania and the Netherlands, at 56% and 51% respectively, have higher gas and oil generation dependency than Ireland. 3 Key Policy Issues 0 48 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 38 Oil Prices to Industry 1400 1200 800 600 400 1Q2015 1Q2014 OECD Europe United States Source: Energy Prices and Taxes © OECD/IEA, 2015 Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain Sweden United Kingdom United States Table 17 Oil Price to Industry Increase since 2010 OECD Europe 3 Key Policy Issues Ireland 1Q2013 1Q2012 0 1Q2011 200 1Q2010 US$/1000 litres excluding taxes 1000 1st qtr 2015 104 (nominal) 94 103 105 112 101 103 93 100 114 102 105 102 101 107 95 96 1st qtr 2015 (real) 89 102 98 105 98 99 94 94 109 99 103 101 96 105 90 91 Index 2010 = 100 98 Source: Energy Prices and Taxes © OECD/IEA, 2015 Table 17 shows that oil prices to industry in Ireland were 6% lower in real terms in early 2015 than in the year 2010. The average decrease in oil price in Europe was 2% and 9% in the US. 49 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 39 Natural Gas Prices to Industry44 60 US$/MWh excluding taxes 50 40 30 20 10 0 OECD Europe United States Source: Energy Prices and Taxes © OECD/IEA, 2015 Belgium Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain United Kingdom United States 118 145 103 155 124 93 118 130 108 103 114 153 129 131 83 1st qtr 2015 (real) 110 138 102 146 121 89 119 122 103 100 112 151 123 124 79 Sweden Austria 1st qtr 2015 (nominal) Denmark Index 2010 = 100 OECD Europe Table 18 Natural Gas Price to Industry Increase since 2010 Source: Energy Prices and Taxes © OECD/IEA, 2015 With reference to Figure 39, natural gas prices to Irish industry increased from the second quarter 2010 until the end of 2013. In general, the price has been falling since then. In the first quarter of 2015 the price of gas to industry in Ireland was 22% above 2010 levels in real terms. Figure 39 shows the gap between gas prices in Europe and the US. Figure 40 summarises the data presented in Tables 16, 17 and 18. The IEA publishes an overall energy price index (real) for industry which shows that the overall energy price to Irish industry between 2010 and early 2015 increased by 19%, compared with 7.3% for OECD Europe and 5.9% for the US. This should be considered in the context of the weighting of energy in the cost base of Irish industry45. 44 Breaks in the trends for Ireland and Greece are due to non-availability of data. 45 Sustainable Energy Authority of Ireland (2007), Energy in Industry 2007 Report, available from www.seai.ie. This report found that 94% of industrial enterprises in Ireland spent less than 4% of their overall costs on energy. These enterprises also accounted for 93% of industrial gross value added. 3 Key Policy Issues Ireland 50 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 40 Real Energy Price Change to Industry since 2010 in EU-15 (index) 150 Index 1st Qtr 2015 (year 2010 = 100) 140 130 120 110 100 90 80 Industry Electricity Price Index (real) Industry Oil Price Index (real) Industry Gas Price Index (real) 3 Key Policy Issues Source: Energy Prices and Taxes © OECD/IEA, 2015 Between 2010 and 2014, energy prices for industry in Ireland increased by 19% in real terms. In OECD Europe the increase was also 18% while in the US energy prices increased by 5.8% over the same period. This reflects Ireland’s dependence on oil and gas as these were the main drivers of global energy prices over this period. 2014 was also a period of falling global oil and gas prices. This is reflected in overall energy prices to industry in Ireland being 2.2% lower than 2013. In OECD Europe prices fell by 2.4% and by 2.3% in the US. 51 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 4 Sectoral Indicators This section explores the changes in energy trends that are taking place at a sectoral level in order to deepen our understanding of energy use patterns generally and to assist in assessing the likely impacts of policies and measures on achieving particular targets. 4.1 Industry Final energy use in industry grew by 55% to a high of 2,672 ktoe over the period 1990 – 2006. Between 2006 and 2009 there was an 18% fall in industrial final energy use. Following a small increase in 2010 of 2.8%, consumption in industry has levelled off. In 2014 industry energy use increased by 3.1% to 2,291 ktoe and was 14% lower than the peak in 2006. Figure 41 shows that over the period 1990 – 2014 only electricity, natural gas and renewables have increased their share. Since 2009 non-renewable wastes have been used as an energy source in industry. The share of electricity has risen from 22% to 35%, natural gas from 21% to 30% and renewables from 3.7% to 7.5%. The increase in renewables is mainly due to the use of biomass in the wood processing industry, the use of tallow in the rendering industry and the use of the renewable portion of wastes in cement manufacturing. Figure 41 Industry Final Energy Use by Fuel 3 2.5 Mtoe 2 4 Sectoral Indicators 1.5 1 0.5 0 1990 1992 Coal 1994 1996 Oil 1998 2000 Natural Gas 2002 2004 2006 Renewables 2008 NR(W) 2010 2012 2014 Electricity Table 19 shows the growth rates, quantities and relative shares of energy in industry. Table 19 Growth Rates, Quantities and Shares of Final Consumption in Industry Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Fossil Fuels (Total) 0.3 0.0 0.3 -6.2 -0.8 Coal -50.5 -2.9 13.4 -11.8 -1.3 Oil -32.3 -1.6 -1.1 -7.8 -11.2 Gas 93.9 2.8 -0.4 -0.7 11.7 Renewables 171.5 4.2 10.3 -1.4 2.9 Non-Renewable (Wastes) 45.7 Combustible Fuels (Total) 11.2 0.4 0.9 -5.6 0.1 Electricity 109.5 3.1 -0.1 3.5 0.8 Total 33.3 1.2 0.7 -3.0 0.3 2014 2.1 30.1 -13.5 11.9 21.7 10.3 4.2 1.1 3.1 Quantity (ktoe) 1990 2014 1,271 1,274 216 107 696 471 358 695 63 171 38 1,334 1,484 386 808 1,720 2,291 Shares % 1990 2014 73.9 55.6 12.6 4.7 40.5 20.6 20.8 30.3 3.7 7.5 0.0 1.7 77.6 64.7 22.4 35.3 In 2014, coal use grew at the fastest rate in industry, by 30%, although it still only accounted for 4.7% of the energy share of industry. The increased coal use in industry is mainly as a result of the increased activity in cement 52 ENERGY POLICY STATISTICAL SUPPORT UNIT manufacturing. Renewables saw the second highest rate of growth in industry, with a 22% increase. The increase in renewables is associated with increased tallow use in the food sector, wood in wood processing and renewable wastes in the cement sector. Natural gas use in industry grew by 11.9% in 2014 and accounted for 30% of industry’s energy use. Electricity consumption increased by 1.1% to 808 ktoe. Non-renewable wastes used for energy in industry increased by 10.3% to 38 ktoe and its share in industry energy was 1.7% in 2014. Oil consumption in industry fell by 13.5% to 471 ktoe and was the only energy source to experience a reduction in industry in 2014. Electricity accounted for the largest share of final energy use in industry at 35%, oil accounted for 21% and gas 30%. In order to determine industry’s total energy-related CO2 emissions it is necessary to view electricity on a primary energy basis, i.e. the fuels required to generate the electricity consumed by industry. Figure 42 shows the primary energy-related CO2 emissions of industry, showing the on-site CO2 emissions associated with direct fuel use and the upstream emissions associated with electricity consumption. Figure 42 Industry Energy-Related CO2 Emissions by Fuel 12 10 MtCO2 8 6 4 4 Sectoral Indicators 2 0 1990 1992 Coal 1994 1996 Oil 1998 2000 2002 Natural Gas 2004 2006 2008 2010 NR(W) 2012 2014 Electricity As detailed in Table 20, industrial energy-related CO2 emissions increased by 0.4% in 2014 to 7.96 Mt CO2. Electricity consumption was responsible for 54% of industry’s energy-related emissions in 2014. Electricity is indirectly responsible for more than half of CO2 emissions in industry, more than all the other fuels used by industry combined. Table 20 shows the growth rates, quantities and relative shares of energy-related CO2 emissions in industry. Table 20 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Industry Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Coal -50.5 -2.9 13.4 -11.8 -1.3 Oil Total -31.7 -1.6 -0.8 -8.5 -10.8 Kerosene 340.2 6.4 6.8 -2.0 -9.8 Fuel Oil -83.8 -7.3 -6.8 -8.0 -31.6 LPG 68.8 2.2 3.6 -0.1 0.4 Gas Oil -24.7 -1.2 0.8 -4.6 -8.2 Petroleum Coke 139.1 3.7 8.4 -21.3 11.5 Natural Gas 101.3 3.0 -0.4 -0.6 11.7 Non-Renewable (Wastes) 48.5 Total Combustible Fuels -5.4 -0.2 0.8 -7.1 -1.5 Electricity 6.7 0.3 -3.9 -0.2 -2.9 Overall Total 0.7 0.0 -1.6 -3.7 -2.3 2014 30.1 -12.2 -5.2 -50.5 -10.2 -10.3 27.9 12.0 10.3 2.1 -1.0 0.4 Quantity (kt) 1990 2014 856 424 2,199 1,501 50 222 1,341 217 165 278 454 342 185 442 824 1,659 81 3,879 3,669 4,020 4,289 7,899 7,958 Shares % 1990 2014 10.8 5.3 27.8 18.9 0.6 2.8 17.0 2.7 2.1 3.5 5.7 4.3 2.3 5.5 10.4 20.9 0.0 1.0 49.1 46.1 50.9 53.9 If upstream electricity-related emissions are omitted then there was a 2.1% increase in CO2 emissions from combustible fuels used on-site in industry in 2014. This is as a result of changes in the volume and fuel mix used in 53 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) industry, with increased coal, gas and non-renewable wastes (+30%, +11.9% and +10.3% respectively), countered by reduced oil (-13.5%) and increased renewables (+22%). 4.1.1 Industry Energy Intensity Industrial energy intensity is the amount of energy required to produce a unit of value added, measured in constant money values. Figure 43 shows the industrial energy intensity between 1990 and 2014 expressed in kilograms of oil equivalent per euro of industrial value added (kgoe/€2013) at 2013 money value. Over the period, industrial energy consumption increased by 33% while value added increased by 208%, resulting in a reduction in intensity of 57%. In other words to generate a euro of value added in 2014, it took less than half of the amount of energy it took in 1990. It should be noted that a downward trend in energy intensity signifies an increase in energy productivity. Value-added output from industry grew by 7% in 2014 relative to 2013 and compares with the 5.2% increase in the economy overall. Energy use in industry increased by 3.1% resulting in a 3.7% improvement in energy productivity in industry. Figure 43 Industry Energy Intensity 0.14 0.12 0.1 kgoe/€2011 0.08 0.06 0.02 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Industry Energy Intensity As mentioned in Section 2.6, energy intensity in this form is a limited indicator and variation may be the result of many factors such as structural changes, fuel mix, volume and other changes. To eliminate the effects of structural changes an index of energy intensity at constant structure46 is also shown, in Figure 44. This indicator measures the impact of structural changes in industry by comparing the variations of the actual intensity with that of a fictitious or notional intensity at constant structure (using 1995 structure as a reference). It can be seen that structural changes have had a significant effect but other factors are also responsible for the improvement in energy productivity. The dark green line in Figure 44 is the trend in energy intensity in industry. Over the period 1995 – 2014, the intensity of industry fell by 36% (2.3% per annum). Between 1995 and 2003 there was an improvement of 33% (5.0% per annum) before a slight deterioration between 2003 and 2007 of 0.7% (0.01% per annum). After 2007, there has been an overall improvement in the industry energy intensity of 3.6% (0.8% per annum). The light green line represents the evolution of industrial energy intensity had the structure of industry not changed over time. If the structural change in industry had not occurred, the intensity would have deteriorated by 19% (0.9% per annum) between 1995 and 2014. There was a return to an energy efficiency improvement in the notional intensity at constant structure between 2004 and 2007 of 6.1% (2.1% per annum) before the impact of the economic downturn in 2008, which led to a deterioration in the notional efficiency of industry at constant structure of 28% (3.9% per annum) between 2007 and 2014. 46 This section draws on methodology developed under the ODYSSEE project. See Bosseboeuf D. et al (1999), Energy Efficiency Indicators – The European Experience and Bosseboeuf D. et al (2005), Energy Efficiency Monitoring in the EU-15, both published by ADEME and the European Commission. http://www. odyssee-indicators.org/ 4 Sectoral Indicators 0.04 54 ENERGY POLICY STATISTICAL SUPPORT UNIT These structural changes were brought about by global economic influences and Irish industrial policy. Over the period, industrial policy concentrated on moving the sector up the value chain to manufacture high value goods such as pharmaceuticals, electronics and value-added foodstuffs. This resulted in increased economic efficiencies, contributing to the further reduction in intensity shown in Figure 44. Figure 44 Index of Energy Intensity of Industry 1995 – 2014 140 120 Index 1995 = 100 100 80 60 40 20 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Energy Intensity at Constant Structure To further remove non-efficiency effects from the energy intensity at constant structure an ODEX indicator for industry in Ireland has been constructed for the period 1995 – 2014, shown in Figure 45. Again here, as with intensity, a downward trend signifies improvement, this time in efficiency. The index decreased from 100 in 1995 to 51.1 in 2007, a 49% (5.4% per annum) improvement in energy efficiency over the period. The index then increased (a deterioration in efficiency), reaching 56.5 in 2011. Between 2011 and 2014 the efficiency improved by 2.8% with the index reaching 54.2 in 2014. Figure 45 Industry ODEX 1995 – 2014 100 90 80 70 Index 1995 = 100 4 Sectoral Indicators Energy Intensity - Actual 60 50 40 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 The ODEX indicator is based on production indices for all of the industry sub-sectors relative to that in the base year (in this case 1995). It is important to note that, for some sub-sectors, the trends also include some non-technical changes, especially in the chemical industry as a result of the shift to light chemicals. Data for this sector are currently not available at a sufficiently disaggregated level. 55 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 4.2Transport Transport energy use peaked in 2007 at 5,715 ktoe and fell each year thereafter until 2013. As the economy started to expand again transport energy use grew in 2013 and 2014, by 4.2% and 4.0% respectively, to 4,522 ktoe. As shown in Figure 46 transport energy in 2014 was 21% below the peak in 2007, back to 2003 levels. Figure 46 Transport Final Energy Use by Fuel47 6 5 Mtoe 4 3 2 1 1992 Petrol 1994 LPG 1996 Diesel 1998 2000 Electricity 2002 2004 2006 Kerosene 2008 Fuel Oil 2010 2012 2014 Renewables The growth rates for the different transport fuels over the period are shown in Table 21. In 2014, petrol and electricity were the only fuels to experience falling use with drops of 5.3% and 6.6% respectively. Liquefied Petroleum Gas (LPG) experienced the largest growth in 2014, growing by 62% (but from a very small base) and reaching just 2.6 ktoe. Renewables in the form of biofuels also had strong growth, increasing by 13.6% to 116 ktoe. Diesel consumption grew by 6.4% during 2014 to 2,519 ktoe and was the most dominant fuel used, accounting for 56% of all energy use in transport. Over the period 1990 – 2014, the biggest shift in the transport market has been from petrol to diesel. While consumption of both fuels increased, consumption of diesel increased by 273% compared with just 20% increase for petrol and diesel’s overall market share grew from 33% in 1990 to 56% in 2014. Table 21 Growth Rates, Quantities and Shares of Final Consumption in Transport Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Fossil Fuels (Total) 118.2 3.3 4.4 -2.4 -0.6 Total Oil 118.2 3.3 4.4 -2.4 -0.6 Petrol 20.3 0.8 2.8 -4.1 -6.4 Diesel 273.5 5.6 5.1 -1.2 3.0 Jet Kerosene 100.0 2.9 6.4 -1.7 -1.3 LPG -69.7 -4.8 -14.1 -12.8 42.3 Natural Gas Renewables 142.8 5.8 Combustible Fuels (Total) 124.0 3.4 4.4 -2.0 -0.4 Electricity 144.1 3.8 17.8 -5.0 -3.8 Total 124.0 3.4 4.4 -2.0 -0.4 2014 3.8 3.8 -5.3 6.4 10.8 61.8 13.6 4.0 -6.6 4.0 Quantity (ktoe) 1990 2014 2,017 4,402 2,017 4,402 942 1,134 674 2,519 374 748 7 2 0.02 116 2,017 4,519 1 3 2,019 4,522 Shares % 1990 2014 99.9 97.4 99.9 97.4 46.7 25.1 33.4 55.7 18.5 16.5 0.3 0.0 0.001 0.0 2.6 99.9 99.9 0.1 0.1 As would be expected, the growth rates and shares of the energy-related CO2 emissions from the different transport fuels, which are provided in Table 22, very closely match the changes in transport fuel consumption. Between 2007 47 This is based on data of fuel sales in Ireland rather than fuels consumed in Ireland. The effect of cross border trade (fuel tourism) or smuggling is not taken into account in the figures presented here. SEAI’s report, Energy in Transport (2014), presents estimates of fuel tourism and these are shown in Figure 58 in the transport report. 4 Sectoral Indicators 0 1990 56 ENERGY POLICY STATISTICAL SUPPORT UNIT and 2012, the primary energy-related CO2 emissions fell by 28%. Transport emissions began to rise again in 2013 for the first time since 2007, increasing by 3.9%. Emissions increased in 2014, again by 3.9% to 13.3 MtCO2. In the following sections, the reasons for the recent reductions in transport fuel consumption and related CO2 emissions are examined. Table 22 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Transport Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 2014 Total Oil Products 120.5 3.3 4.4 -2.4 -0.5 3.9 Petrol 20.3 0.8 2.8 -4.1 -6.4 -5.3 Diesel 273.5 5.6 5.1 -1.2 3.0 6.4 Jet Kerosene 100.0 2.9 6.4 -1.7 -1.3 10.8 LPG -69.7 -4.8 -14.1 -12.8 42.3 61.8 Electricity 24.3 0.9 13.3 -8.4 -7.3 -8.6 Total 120.2 3.3 4.4 -2.4 -0.5 3.9 Quantity (kt) 1990 2014 6,029 13,291 2,761 3,320 2,070 7,729 1,118 2,236 19 6 14 18 6,043 13,309 Shares % 1990 2014 99.8 99.9 45.7 24.9 34.2 58.1 18.5 16.8 0.3 0.0 0.2 0.1 4.2.1 Transport Energy Demand by Mode 4 Sectoral Indicators Fuel consumption in transport is closely aligned to the mode of transport used: jet kerosene is used for air transport, fuel oil for shipping and electricity is currently consumed by the Dublin Area Rapid Transport (DART) system and, since 2004, by Luas. LPG is almost exclusively used for road transport, as is petrol. The bulk of petrol consumption for road transport can be assumed to be for private car use although there are a significant number of petroldriven taxis in operation. Diesel consumption is used for navigation, rail and road purposes, including: freight transportation, public transport in buses and taxis, private car transport and other applications in agricultural, construction and other machines. SEAI’s report Energy in Transport48 presents an estimation of the energy use in transport by different modes. The contribution from each mode of transport to energy demand is shown in Figure 47 and detailed in Table 23. In 2014, a new category of Light Goods Vehicle (LGV) was added. This was been made possible from the analysis of the fuel efficiency of LGVs and the assessment of annual mileage estimated from the Commercial Vehicle Roadworthiness Test data from the Road Safety Authority (RSA). Energy use identified under the LGV category was previously included in the Unspecified category. Table 23 Growth Rates, Quantities and Shares of Transport Final Energy Demand by Mode, 1990 – 2014 Growth % Mode Road Freight Light Goods Vehicle (LGV) Average annual growth rates % 1990 - ‘14 ‘90 – ‘14 79.5 2.5 Quantity (ktoe) Shares % ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 2014 1990 2014 1990 2014 6.6 -9.2 -2.5 6.9 346 621 17.1 13.7 - - - - -4.5 -4.9 - 303 - 6.7 Private Car 129.1 3.5 3.8 1.6 1.0 0.4 926 2,122 45.9 46.9 Public Passenger (road) 192.3 4.6 12.7 1.0 -1.8 3.8 52 153 2.6 3.4 Rail -14.0 -0.6 1.2 -0.6 -3.1 -8.1 45 38 2.2 0.9 Aviation 99.7 2.9 6.4 -1.7 -1.3 10.8 375 749 18.6 16.6 - - -7.3 -8.6 0.6 40.3 0 321 0.0 7.1 Fuel Tourism Navigation 901.2 10.1 16.0 5.4 3.0 25.2 7 72 0.4 1.6 Unspecified -47.0 -2.6 16.1 -23.1 1.9 -22.5 267 142 13 3.1 Total 124.0 3.4 4.4 -2.0 -0.4 4.0 2,019 4,522 Combined petrol and diesel fuel tourism is also included in Figure 47. Only fuel tourism out of the Republic of Ireland (ROI) is included in this graph (i.e. fuel which is purchased in ROI but consumed elsewhere). Before 1995 the trend was negative, meaning fuel was purchased outside and consumed within the State. 48 Sustainable Energy Authority of Ireland (2014), Energy in Transport – 2014 Report, http://www.seai.ie/energy-data-portal/ 57 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 47 Transport Energy Demand by Mode 1990 – 2014 6 5 Mtoe 4 3 2 1 0 1990 1992 1994 1996 1998 2000 Private car HGV Aviation Public Passenger 2002 Rail 2004 2006 2008 2010 Fuel Tourism Navigation LGV 2012 2014 Unspecified Road transport accounted for 71% of transport TFC in 2014 (78% if unspecified and fuel tourism are included as road transport). SEAI estimates that private car transport was responsible for 2,122 ktoe of TFC in 2014. This represents 66% of road transport energy use and 47% of all transport energy use. Figure 47 also illustrates the relative weighting of private car transport compared to road passenger services (bus) and rail travel. HGVs experienced an increase in energy use in 2014 of 6.9% while LGV energy use fell by 4.9%. Energy use by private cars, accounting for 47% of transport energy, increased by 0.4% and public passenger (road) consumption increased by 3.8%. 4.2.2 Private Car Transport In 2014, the number of vehicles on Irish roads exceeded 2.5 million for the first time (2,515,322), of which 77% were private cars. The number of private cars peaked in 2008 at 1,923,471 and numbers fell in three of the following five years. In 2014 the number of licensed private cars on the road increased by 1.8% to a new peak of 1,943,868 exceeding the 2008 numbers by 1.1%. 4 Sectoral Indicators As shown in Table 23 in the period 1990 – 2014 the TFC of the transport sector increased 124%, from 2,019 to 4,522 ktoe. Looking at Figure 47 there is a clear divide to be seen in consumption trends pre- and post-2007, due in large part to the economic downturn that began in 2008. Between 1990 and 2007 final energy consumption in transport increased 183% to 5,715 ktoe, while between 2007 and 2014 consumption fell by 21%. Heavy Goods Vehicle (HGV) road freight in particular has been affected by both the economic boom and the recession, experiencing both the greatest increase in the period 1990 – 2007 (231% from 346 to 1,145 ktoe) and the greatest contraction in the period 2007 – 2014 (46% from 1,145 to 621 ktoe). 58 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 48 Private Cars per 1,000 of Population 600 500 Private Cars Per 1,000 Population: EU 27 Average (2010) = 477 Germany (2013) = 538 France (2013) = 490 Belgium (2013) = 490 Denmark (2010) = 389 Netherlands (2013) = 471 UK (2013) = 442 Source: Eurostat and DG TREN Cars Per 1,000 400 312 335 324 327 300 227 249 237 242 349 364 275 262 Private Cars Per 1,000 of Adults: EU 27 Average (2007) = 551 EU 15 Average (2007) = 592 UK (2013) = 541 France (2013) = 604 Germany (2013) = 609 Source: Based on Eurostat Data 459 382 292 403 310 417 323 436 445 339 348 469 479 379 360 370 494 391 507 402 528 420 541 539 539 529 521 525 524 533 430 429 420 411 413 411 416 422 200 100 0 1990 1992 1994 1996 1998 2000 2002 2004 Ireland cars per 1,000 Population 2006 2008 2010 2012 2014 Ireland cars per 1,000 Adults Source: Based on Vehicle Registration Unit and CSO data The car density in 2014 (as shown in Figure 48) was 422 cars per 1,000 of population, up slightly on the 2013 figure of 416. This is compared to an EU-27 average of 477 in 2010 and a UK average of 442 in 2013. 4 Sectoral Indicators 4.2.3Key Policy Measures Affecting Private Car CO2 Emissions A new system of assessing private cars for Vehicle Registration Tax (VRT) and Annual Motor Tax (AMT) came into effect from July 2008 for vehicles purchased in 2008 or later. The system moved away from assessing vehicles based on engine size to one that is based solely on the CO2 emissions per kilometre. Seven tax bands were originally used for the assessment with the bands corresponding to the EU labelling system. The range of bands was extended in January 2013 and now includes twelve categories. The new bands are shown in Table 24. Table 24 CO2based Vehicle Registration and Road Tax Bands Band CO2 Emissions (g CO2/km) Band A0 zero to 1 Band A1 greater than 1 and less than or equal to 80 Band A2 greater than 80 and less than or equal to 100 Band A3 greater than 100 and less than or equal to 110 Band A4 greater than 110 and less than or equal to 120 Band B1 greater than 120 and less than or equal to 130 Band B2 greater than 130 and less than or equal to 140 Band C greater than 140 and less than or equal to 155 Band D greater than 155 and less than or equal to 170 Band E greater than 170 and less than or equal to 190 Band F greater than 190 and less than or equal to 225 Band G greater than 225 Prior to 2007 the European Commission had a strategy based on three pillars for reducing CO2 emissions from cars. The three pillars were: •• Voluntary commitments from car manufacturers to cut emissions; •• Improvements in consumer information; •• Promotion of fuel-efficient vehicles by means of fiscal measures. It was recognised in 2007 that the objective of achieving average new car emissions of 130 g CO2/km by 2012, as 59 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) agreed with European, Japanese and Korean car manufacturers, would not be met without additional measures. This failure is reflected in Ireland in Figure 50, which shows that between 2000 and 2007 there was virtually no reduction in the average emissions of new cars. As already discussed, fiscal measures in the form of the VRT and AMT changes came into effect in 2008 which resulted in an almost immediate reduction in the average new car emissions in Ireland. Legislation on CO2 from passenger cars was officially published in June 2009 in the form of Regulation 443/2009/EC setting emission performance standards for new passenger cars. The Regulation sets the average CO2 emissions for new passenger cars below 130 g CO2/km by 2015, by means of improvement in vehicle motor technology. A further 10 g CO2/km reduction is to be obtained by using other technical improvements. The other technical improvements49 are expected to come from: •• Setting minimum efficiency requirements for air-conditioning systems; •• Compulsory fitting of accurate tyre pressure monitoring systems; •• Setting maximum tyre rolling resistance limits in the EU for tyres fitted on passenger cars; •• The use of gear shift indicators, taking into account the extent to which such devices are used by consumers in real driving conditions; •• Increased use of biofuels maximising environmental performance. From 2020 onwards, the Regulation sets a target of 95 g CO2/km as average emissions for the new car fleet, which would mean that the average new passenger car would be in band A2. 4.2.4 CO2 Emissions of New Private Cars Figure 49 and Table 25 show the shares of new car sales50 between 2000 and October 2015 classified by emissions label band. Between 2000 and 2005 the share of label bands A and B was on average 11%. For the first half of 2008, before the new taxes came into effect, the share of these two bands was 25%. Upon introduction the taxes had an immediate effect: for the second half of 2008 the share of the A and B bands rose to 50%. Conversely, the combined share of bands E, F and G fell from 28% in early 2008 to 13% after the change. 4 Sectoral Indicators Figure 49 Shares of New Private Cars in each Emissions Band 2000 – 2014 (+2015 to October) Shares of new private cars in each emissions label band 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 A (<=120) 2001 2002 B (121-140) 2003 2004 2005 C (141-155) 2006 2007 D (156-170) 2008 2009 E (171-190) 2010 2011 2012 F (191-225) 2013 2014 G (>225) 2015 Jan-Oct n/a Source: Based on Vehicle Registration Unit data This was a significant shift in purchasing patterns towards lower-emissions vehicles in such a short time period, though it was tempered by the fact that the motor industry experienced a severe downturn during 2008/2009. 49 Commission of the European Communities (2007), Results of the review of the Community Strategy to reduce CO2 emissions from passenger cars and lightcommercial vehicles. COM(2007) 19 final. 50 Licensed as private cars. 60 ENERGY POLICY STATISTICAL SUPPORT UNIT Despite the reduction in the number of vehicles sold, the combined effect of the EU legislation obligating manufacturers to reduce average fleet emissions and the changes to the Irish taxation system for private cars has been to continue to steadily drive down the average new car fleet emissions year on year since 2008. In 2010 a further incentive towards the purchase of A and B band vehicles came in the form of a government scrappage scheme which applied if a car of 10 years or older was being scrapped and the new car being purchased was in emissions band A or B. This scheme ran until June 2011 but with reduced relief from January 2011. In 2014 the share of A and B cars was 94.6% and for the first ten months of 2015 it was 95.4%. The largest increase in share was in the A label band, which rose from just 1.5% in 2007 to 68% of the new private cars sold in 2014. Data for 2015 (up to October) show that this trend has continued with A vehicles making up 72% or almost three quarters of all new registrations. The share of high emitting cars in label bands E, F and G only amounted to 1.5% of new cars sold during 2014 and to 1.0% of new cars for the first ten months of 2015, in the latter case just 1,182 cars out of a total of 118,389. Table 25 Shares of New Private Cars in each Emissions Band, 2000, 2005 – 2014 (+2015 to October) CO2 band 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 to Sept A 0.0% 0.9% 1.8% 1.5% 3.8% 12.7% 35.1% 42.5% 53.8% 61.3% 67.8% 71.7% B 11.3% 11.4% 20.3% 16.3% 26.8% 44.1% 45.2% 47.8% 38.2% 32.2% 26.8% 23.7% C 25.6% 23.2% 18.8% 23.4% 19.3% 19.5% 10.1% 5.0% 4.0% 3.7% 3.0% 2.6% D 32.4% 27.6% 30.2% 24.7% 25.0% 13.1% 6.2% 2.6% 1.9% 0.9% 0.8% 1.0% E 17.5% 25.1% 19.3% 21.6% 15.9% 6.8% 2.0% 1.0% 1.0% 0.8% 0.4% 0.6% F 9.5% 7.5% 7.2% 8.4% 6.4% 1.8% 0.6% 0.6% 1.0% 1.0% 0.9% 0.4% G 3.7% 4.2% 2.3% 4.2% 2.8% 0.4% 0.3% 0.2% 0.1% 0.1% 0.1% 0.0% All new cars have associated fuel consumption and CO2 emissions figures measured under test conditions. Figure 50 shows the change in the weighted average specific CO2 emissions of new cars between 2000 and 2014, with an estimate for 2015. Between 2000 and 2007 the average CO2 emissions for all cars was approximately 166 g CO2/km which is within band D. Following the change to CO2 taxation in July 2008 the weighted average emissions went from 161 g CO2/km, for the first six months of 2008, to 147 g CO2/km for the second half of the year (8.7% reduction). Through the combined effects of the taxation change and the obligation on manufacturers to reduce overall fleet emissions, the average emissions of the new car fleet continued to drop, reaching 117.5 g CO2/km in 2014 which is within band A4. This was 29% below the level in 2007. It is estimated that the average emissions of new cars purchased in 2015 is 116 g CO2/km, which also falls within the A4 band. Figure 50 Specific CO2 Emissions of New Cars, 2000 – 2014 (2015 estimated) 180 170 166.1 167.7 167.2 166.7 167.9 166.1 161.7 164.0 158.2 160 150 144.0 g CO2/km 4 Sectoral Indicators Source: Based on Vehicle Registration Unit data 140 132.8 128.0 130 125.1 120.9 120 117.5 116.2 110 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Based on Vehicle Registration Unit and VCA data ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 61 Data presented in this report on the carbon emissions ratings of new cars are based on the results of a standardised laboratory test procedure based on the New European Driving Cycle (NEDC). The difference between the test emissions and the emissions actually produced in real world driving conditions is referred to as the on-road factor. A number of recent reports by the International Council on Clean Transportation (ICCT) have highlighted data from a number of sources which suggest that the on-road factor has increased dramatically in recent years and that the real world fuel consumption and carbon emissions of new vehicles is now significantly greater than reported test values51. Figure 51 shows the position of Ireland in relation to its EU partners in terms of new car emissions. In 2013, the average CO2 emissions from new cars in Ireland were 5% below the EU average and ranked seventh lowest out of the 27 countries. EU Regulation 443/2009/EC has set a target for all passenger cars to have average emissions below 130 g CO2/km by 2015. Ireland is one of 10 EU countries already below the target. Figure 51 Specific CO2 Emissions of New Cars: International Comparison – 201352 Average CO2 Emissions - g CO2/km (2013) 160 140 120 100 80 60 40 20 Source: European Environment Agency In 2014, 38% of the stock of private cars had been purchased in 2008 or later. This means that a significant portion of the stock of cars on the road is more efficient than the older cohort. 4.2.5Energy Efficiency of New Private Cars The first SEAI transport report53 presented a method for measuring the specific fuel consumption by calculating the overall efficiency of new cars entering the fleet. The analysis is updated here with more recent data. All new cars have associated fuel consumption figures54 (measured under test conditions), quoted for urban, extra-urban and combined driving.55 An average specific fuel consumption figure for new cars entering the national fleet may be calculated by weighting the test values by the sales figures for each individual model. The weighted average of the fuel consumption of new cars first registered in the years 2000 – 2014 was calculated by SEAI using an extract from the Vehicle Registration Unit’s national database, and data on the fuel consumption of individual models. The results of this analysis are shown in Figure 52 . Further detailed results of this and other analyses were presented in SEAI’s Energy in Transport – 2014 Report. 51 For more information see www.theicct.org. 52European Environment Agency (2014), Monitoring CO2 emissions from passenger cars and vans in 2013, http://www.eea.europa.eu//publications/ monitoring-co2-emissions-from-passenger 53 Sustainable Energy Authority of Ireland (2003), Energy and CO2 Efficiency in Transport – analysis of new car registrations in year 2000, www.seai.ie 54 Fuel consumption and CO2 emissions data were sourced from the Vehicle Certification Agency. The database can be downloaded at http://www.dft.gov. uk/vca/fcb/new-car-fuel-consump.asp 55 Details for the methodology for the test cycles can be found in Section 4 of the following paper: O’Gallachoir, B., & Howley, M. (2004, July). Proceedings of the International Conference on Vehicles Alternative Fuel Systems and Environmental Protection (VAFSEP 2004). In Changing fleet structure versus improved engine performance - energy and CO2 efficiency of new cars entering the Irish fleet. Dublin. 4 Sectoral Indicators 0 62 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 52 Weighted Average Specific Fuel Consumption of New Cars 2000 – 2014 8 litres/100km 7 6 6.91 6.19 6.99 6.99 7.01 7.01 7.02 6.77 6.28 6.12 6.22 6.36 6.32 6.41 6.82 6.68 6.28 6.33 5.77 5.87 5.49 5.35 5.29 5 5.19 5.15 5.02 4.89 4.76 4.64 4.57 4 2000 2001 2002 2003 2004 2005 2006 2007 2008 Petrol 2009 2010 2011 2012 2013 2014 Diesel Source: Based on Vehicle Registration Unit and VCA data 4 Sectoral Indicators Over the period examined, for new petrol cars, the lowest fuel efficiency was recorded in 2005 (7.02 litres/100km). Since 2005 there has been a 27% improvement in the fuel efficiency of new petrol cars, to 5.15 litres/100 km. For new diesel cars, the lowest fuel efficiency was recorded in 2006 (6.41 litres/100km). Since 2006 there has been a 29% improvement in the fuel efficiency of new diesel cars, to 4.57 litres/100 km. Generally, until 2005 the decrease in fuel efficiency suggests that the purchasing trend towards large cars over the period outweighed any of the efficiency benefits of engine improvements. This changed during 2008 following the introduction of policy measures aimed at improving the CO2 emissions of new cars. Since CO2 emissions are very closely linked to fuel efficiency, such policy measures have had a direct and corresponding effect on fuel efficiency. 4.2.6 Private Car Average Annual Mileage SEAI’s report Energy in Transport – 2007 Report56 first profiled private car average annual mileage. A refining and updating of the results has since taken place and the revised figures are presented here. These are based on the analysis of 14.1 million National Car Test (NCT) results. Average mileage for all private cars increased by 2.2% (0.2% per annum on average) over the period 2000 – 2014. Petrol car annual mileage fell by 11% (0.8% per annum) while diesel car average mileage fell by 6.2% (0.5% per annum). Many households now own two cars. This will typically increase the transport energy usage per household but will also reduce the per car average mileage. Figure 53 shows the total kilometres driven by private cars in Ireland each year from 2000 to 2014, based on an analysis of NCT data. Overall, the total number of kilometres travelled has increased which in turn has led to increased private car fuel consumption, as detailed in Section 4.2.1. Total mileage by all private cars increased by 52% over the period 2000 – 2014. Overall travel in petrol cars has been falling since 2007, reducing by 29% between 2007 and 2014, while travel by diesel cars increased by 130% over the same period. Indeed the rate of increase of overall travel by diesel cars increased after 2007 to 13% per annum, compared with 9% per annum between 2000 and 2007. In 2000, 81% of total private car mileage was fuelled by petrol and 19% by diesel. In 2014, petrol accounted for 48% and diesel for 52%. Between 2000 and 2014 the total mileage by petrol cars fell by 10.8% while total mileage for diesel cars increased by 318%. This reduction in travel by petrol vehicles and increase in travel by diesel vehicles is due to the changing ownership patterns since the changes in the VRT and Annual Road Tax were introduced in 2008.57 56 Sustainable Energy Ireland (2009), Energy in Transport – 2009 Report, www.seai.ie/statistics 57 A note of caution: as the mileages are based on NCT tests and new cars are only first tested when they are four years old there is an inherent lag in the recording of the changing average mileage patterns in this data. 63 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 53 Total Private Car Annual Mileage 2000 – 2014 40 35 Total annual kilometres (billions) 30 25 23.0 25.1 24.2 20 18.7 20.3 19.7 28.2 26.8 25.8 20.9 29.8 22.3 21.4 22.9 31.3 23.4 32.1 23.0 31.6 21.7 31.3 20.2 32.4 33.1 19.4 18.4 15 10 5 6.9 4.4 4.5 4.8 5.0 5.3 5.9 2000 2001 2002 2003 2004 2005 7.9 9.1 9.9 2008 2009 11.1 13.0 14.7 34.1 34.9 17.7 18.3 16.4 16.6 0 2006 2007 Petrol and Diesel Combined 2010 Private Petrol Cars 2011 2012 2013 2014 Private Diesel Cars Source: Based on NCT Data As discussed in Section 4.2.1 HGV freight transport was responsible for the largest share of the decrease in transport sector energy demand in the period 2007 – 2014. This was primarily the result of reduced activity in the sector. Three metrics which measure activity in the road freight sector are tonne-kilometres, vehicle kilometres and tonnes carried. Figure 54 and Table 26 present data on these three metrics, along with GDP as an index with respect to 1991. The data are taken from the CSO’s Road Freight Survey for 1991 to 2014 which considers vehicles taxed as goods vehicles, vehicles weighing over two tonnes unladen and those which are actually used as goods vehicles, rather than for service type work, for example. Figure 54 Road Freight Activity 1991 – 2014 400 350 Index 1991 = 100 300 250 200 150 100 50 0 1991 1993 1995 1997 Vehicle Kilometres Source: CSO 1999 2001 Tonnes Carried 2003 2005 GDP 2007 2009 2011 Tonne Kilometres 2013 4 Sectoral Indicators 4.2.7 Heavy Goods Vehicle Activity 64 ENERGY POLICY STATISTICAL SUPPORT UNIT Table 26 Road Freight Activity 1991 – 2014 Growth % Average annual growth rates % Quantity ‘91 – ‘14 ‘00 – ‘05 ’05 –’10 ‘10 – ‘14 2014 1991 2007 2014 Mega-Tonne Kilometres 90.2 7.8 -9.3 -2.7 6.9 5,138 18,707 9,772 Kilo-Tonnes Carried 40.4 8.8 -15.5 -2.8 3.4 80,137 299,307 112,499 Mega-Vehicle Kilometres 61.2 7.7 -8.8 -2.7 3.6 811 2,332 1,307 GDP (million € @2013 prices) 178.3 5.3 0.8 1.4 5.2 64,475 185,768 188,778 Source: CSO It can be seen that all metrics increased significantly after the data set began in 1991, until 2007. Tonne-kilometres increased by 264% (8.4% per annum) over the period 1991 – 2007, vehicle kilometres increased by 188% (6.8% per annum) and total tonnes carried increased by 273% (8.6% per annum). Also included are data for GDP58 which increased by 204% between 1991 and 2007. It should be noted that both tonne-kilometres and tonnes carried increased significantly more than GDP in this period. Between 2007 and 2009 GDP fell, but has since returned to growth and in 2014 was 1.6% above 2007 levels. In that time period the overall tonnes carried fell sharply back to 1997 levels, a fall of 64% (15.5% per annum). Tonnekilometres fell by 48% (8.9% per annum) and vehicle kilometres travelled fell by 44% (7.9% per annum). Again it should be noted that all three transport metrics contracted much more severely than GDP after the economic crisis of 2008. Figure 55 Absolute Change in Road Freight Activity by Main Type of Work Done 1990 – 2014 1990 – 2007 2007 – 2014 4,000 Change in Million tonne kilometres 4 Sectoral Indicators It is important to understand why freight has been so responsive to economic drivers in the past so as to be able to estimate how it will respond to potential future economic trends, particularly whether the dramatic rise in tonnekilometres transported and the corresponding increase in energy demand experienced in the period 1990 – 2007 is likely to be repeated should there be a return to significant economic growth. To do this it is useful to analyse in more detail which sectors of the economy contributed to the changes in tonne-kilometres transported in the period 1990 – 2014. The CSO provides data on HGV activity classed by main the type of work done. To highlight which categories contributed most in absolute terms to both the increase in activity between 1990 and 2007 and the contraction from 2007 to 2014, these data are shown in Figure 55. 3,000 2,000 1,000 0 -1,000 -2,000 -3,000 -4,000 Delivery of goods to road works or building sites Other work Delivery of materials and fuels to factories Carriage of agri-products Import and export Delivery of goods to retail outlets Delivery of goods to wholesalers Source: CSO The category ‘Delivery of goods to road works or building sites’ experienced the largest absolute increase (3,545 Mtkm) and the second largest percentage increase (521%) between 1990 and 2007 and subsequently experienced both the largest absolute decrease (3,251 Mtkm) and the largest percentage decrease (77%) between 2007 and 2014. Of the total increase in freight transport activity from 1990 to 2007 (13,578 Mtkm) ‘Delivery of goods to road 58 Constant prices chain-linked to 2013. 65 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) works and building sites’ was responsible for 26%, the highest share, while of the total reduction in activity from 2007 to 2014 (8,934 Mtkm) it was responsible for 36%, again the largest share. The next biggest contributor to both the rise and fall of transport activity was ‘Import and export’ which between 1990 and 2007 accounted for 3,104 Mtkm (23%) of the total increase, and between 2007 and 2014 accounted for 2,339 Mtkm (26%) of the total reduction. 4.2.8 Transport Sector Energy Efficiency Two ODEX indicators examine efficiency for the transport sector as a whole in Figure 56. Note that air transport is not included as per the EU Directive 2006/32/EC. Figure 56 Transport ODEX 1995 – 2014 110 100 Index 1990 - 100 90 80 70 50 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Transport Transport (Technical) The transport observed ODEX fell by 6.5%59 (0.4% per annum) over the period 1995 – 2014 while the technical ODEX decreased by 13% (0.8% per annum). 59 22% improvement in transport sector energy efficiency 4 Sectoral Indicators 60 66 ENERGY POLICY STATISTICAL SUPPORT UNIT 4.3Residential Residential final energy use grew by 12.4% (0.5% per annum) over the period 1990 – 2014 to a figure of 2,539 ktoe in absolute terms. Corrected for weather the growth was 8.8%. During this time the number of households60 in the State increased by 65% from approximately 1.0 million to 1.68 million61. Residential energy use fell by 8.1% in 2014 relative to 2013. 2014 was milder than 2013 in terms of degree days (12.5% less degree days62). When corrections for weather effects63 are taken into account the decrease in energy use was 1.5% in 2014 relative to 2013 (see Table 27). Figure 57 Residential Final Energy Use by Fuel 3.5 3 2.5 Mtoe 2 1.5 1 0.5 0 1990 1992 4 Sectoral Indicators Coal 1994 Peat 1996 1998 Oil 2000 Natural Gas 2002 2004 2006 Renewables 2008 NR(W) 2010 2012 2014 Electricity Figure 57 shows significant changes in the mix of fuels that have been consumed in the residential sector over the period. This can largely be explained by the move away from the use of open fires and solid fuel fired back-boiler heating systems that were popular in the 1970s and 1980s. New houses built in the 1990s predominantly had oil or gas fired central heating, or in some cases electric storage heating, and there has also been a trend since the late 1980s to convert existing back-boiler systems to either oil or gas. Central heating systems are generally more energy efficient than individual room heating appliances, so for a given level of space heating less energy would be expected to be used. On the other hand, a considerable increase in the level of comfort, in the form of higher temperatures and a move towards whole house heating, is often associated with the introduction of central heating. The use of timer controls may be more convenient, particularly with oil and gas fired systems, which may result in greater usage. The revisions of building regulations also had an impact on residential final energy use. Revisions were introduced in 1992, 2002, May 2006, July 2008 and December 2011, all of which had the effect of significantly improving the insulation, heating system and overall energy performance requirements of the new housing stock. The increase in electricity usage in households may in part be explained by an increase in the use of domestic appliances: washing machines, driers, dishwashers, microwave ovens, computers, televisions, games consoles, etc. As can be seen from Figure 57, oil is the dominant fuel in the residential sector, more than doubled its share from 17% in 1990 to 39% in 2010, but falling back to 34% in 2014. Electricity is the second most dominant energy form in the sector at 26%. Natural gas is the third fuel of choice, at 21% share. The renewables share of final energy used directly in households in 2014 was 2.6%. The growth rates, quantities and shares are shown in Table 27. 60 61 62 63 Defined as the number of private households in permanent housing units. Based on Central Statistics Office (2012), Census 2011 Profile 4 – The Roof over our Heads. See Glossary for definition of ‘degree days’. Annual variations in weather affect the space heating requirements of occupied buildings. Weather correction involves adjusting the energy used for space heating by benchmarking the weather in a particular year with that of a long-term average measured in terms of number of degree days. It is assumed that 65% of fuels and 10% of electricity use in households is used for space heating. 67 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Table 27 Growth Rates, Quantities and Shares of Final Consumption in Residential Sector Fossil Fuels (Total) Coal Peat Briquettes Oil Gas Renewables Combustible Fuels (Total) Electricity Total Total Climate Corrected Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 -2.5 -0.1 3.2 1.8 -7.6 -65.0 -4.3 -3.0 0.7 -3.7 -72.4 -5.2 -1.8 -1.5 -5.8 -53.4 -3.1 -5.5 -0.5 -4.8 120.1 3.3 4.6 2.0 -9.2 356.8 6.5 6.7 3.2 -6.8 45.0 1.6 5.6 19.0 4.6 -3.4 -0.1 3.2 1.9 -7.5 86.0 2.6 3.3 2.6 -2.6 12.4 0.5 3.3 2.2 -6.1 8.8 0.4 3.9 -0.8 -2.6 2014 -10.1 -19.8 -8.2 -19.9 -6.5 -11.6 1.2 -10.0 -3.1 -8.1 -1.5 Quantity (ktoe) 1990 2014 1,857 1,812 626 219 725 200 155 72 389 857 117 536 45 65 1,902 1,838 356 663 2,258 2,539 2,378 2,586 Shares % 1990 2014 82.2 71.4 27.7 8.6 32.1 7.9 6.9 2.8 17.2 33.8 5.2 21.1 2.0 2.6 84.2 72.4 15.8 26.1 The salient trends in energy use in the residential sector are as follows: •• 2014 was milder than 2013, which saw energy use fall by 8.1%. Allowing for weather corrections the fall in energy use was 1.5%. There was some anecdotal evidence from suppliers of a certain amount of stockpiling of coal by householders ahead of the introduction of the carbon tax on solid fuels in May 2013. As these stocks were used during 2014 part of the reduction in household energy use may be accounted for by this. •• Direct renewables usage in households was the only energy source that increased in 2014, growing by 1.2% to 65 ktoe, and its share increased to 2.6% from 2.3% in 2013. •• Oil usage increased by 120% over the period 1990 – 2014 to 857 ktoe and its share in the residential sector grew from 17% to 34%. There was a 6.5% fall in oil consumption in households in 2014. •• Electricity consumption fell by 3.1% in 2014 to 663 ktoe (7,709 GWh) and its share of residential final consumption was 26%. •• Coal usage increased by 13% in 2013 to 273 ktoe and its share increased by one percentage point to 9.9%. Some of this increase is thought to be due to the extended cold spell during the first half of the year which continued until May. During this time, oil and gas prices were high and there may have been some fuel switching to coal and other solid fuels purchased on a week-to-week basis to supplement central heating systems. Also as mentioned above, this increase may have been in part due to a certain amount of stockpiling by householders ahead of the introduction of the carbon tax on solid fuels. There is anecdotal evidence of this from suppliers who report higher than usual sales during the first half of 2013 combined with lower than usual sales in the second half of the year and indeed into 2014. The almost 20% reduction in coal use in 2014 would appear confirm the stockpiling assumption. •• Peat usage fell by 8.2% in 2014 while peat briquette usage decreased by 19.9% Total peat consumption was 200 ktoe in 2014. The peat and briquette share in household energy was 10.7% in 2014. •• Overall fossil fuel use in households fell by 10.1% to 1,812 ktoe in 2014 and accounted for 71% of household energy use. This fall is in line with the 12% reduction in heating degree days – i.e. approximately 12% milder. In 2014 residential sector energy-related CO2 emissions (including upstream electricity emissions) were 9,103 kt CO2, representing 25% of the total energy-related CO2 emissions. The residential sector total was the second largest after transport (37%). Excluding upstream electricity emissions, direct CO2 emissions from the household sector were 5,586 kt and were 10.3% lower in 2014 compared with 2013. Over the period 1990 – 2014 energy-related CO2 emissions64 from the residential sector fell by 15.4% (0.7% on average per annum) while those in transport and industry rose, respectively, by 120% (3.3% per annum) and 0.7% (0.03% per annum), while services fell by 1.3% (0.1% per annum). If upstream emissions associated with electricity use are excluded, the CO2 emissions from direct fossil fuel use in the residential sector fell by 20.1% compared with 1990, while over the same period the number of households increased by 66%. The residential sector is examined in more detail with respect to energy-related CO2 emissions in Figure 58 and the relatively constant or flat overall trend can be seen. While final energy use in the sector increased by 12.4% over the period, its energy-related CO2 emissions fell by 15.4%, illustrating the effect of the changing fuel mix on energyrelated emissions. 64 Energy-related emissions detailed are not corrected for weather. 4 Sectoral Indicators •• Natural gas usage fell by 11.6% in 2014 to 536 ktoe and accounted for 21% of residential energy use. 68 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 58 Residential Energy-Related CO2 by Fuel 12 10 MtCO2 8 6 4 2 0 1990 1992 Coal 1994 Peat 1996 1998 Oil 2000 2002 Natural Gas 2004 2006 2008 Renewables 2010 NR(W) 2012 2014 Electricity 4 Sectoral Indicators Table 28 Growth Rates, Quantities and Shares of Energy-Related CO2 Emissions in Residential Sector Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Coal -64.5 -4.2 -2.9 0.6 -3.6 Peat -72.6 -5.3 -1.7 -1.5 -5.8 Briquettes -53.4 -3.1 -5.5 -0.5 -4.8 Oil 118.7 3.3 4.5 1.8 -9.3 Gas 374.2 6.7 6.7 3.3 -6.8 Renewables Combustible Fuels (Total) -20.8 -1.0 2.5 1.4 -7.4 Electricity -5.3 -0.2 -0.6 -1.0 -6.1 Total -15.4 -0.7 1.2 0.5 -6.9 2014 -19.7 -8.0 -19.9 -6.6 -11.6 -10.3 -5.1 -8.4 Quantity (kt CO2) 1990 2014 2,483 882 3,123 855 642 299 1,175 2,570 270 1,279 7,052 5,586 3,713 3,517 10,764 9,103 Shares % 1990 2014 23.1 9.7 29.0 9.4 6.0 3.3 10.9 28.2 2.5 14.1 0.0 0.0 65.5 61.4 34.5 38.6 4.3.1 Unit Consumption of the Residential Sector The unit consumption of the residential sector is typically defined in terms of the energy consumed per dwelling. Figure 59 shows the trend in unit consumption per dwelling, which decreased by 32% during the period 1990 – 2014. While overall unit energy use per dwelling has decreased by 32% since 1990, Figure 59 also shows an increasing trend in electricity consumption per dwelling. This has increased by 11.7% since 1990. The increasing penetration of household electrical appliances such as washing machines, dishwashers, clothes driers, computers, multiple televisions and set top boxes as well as convenience appliances is believed to have contributed to this increase. In contrast, fossil fuel consumption per dwelling has decreased by 41% over the period. In 2014 the average dwelling consumed a total of 17,927 kWh of energy based on climate corrected data, 2.2% below the 2013 level. This comprised 13,318 kWh (74%) of direct fuels and (4,610 kWh) of electricity. Figure 59 also shows overall unit energy use per dwelling, corrected for climate variations. Looking at this in conjunction with Table 31, it can be seen that the decrease in climate corrected energy use per dwelling over the period was 35% while the uncorrected energy use decrease was 32%. Most of the improvement in climate corrected per unit use occurred during the early 1990s and again from 2006 onwards. There are a number of potential influencing factors driving this significant reduction. These include: •• Improvements to part L of the building regulations governing conservation of energy in dwellings; 69 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) •• various government schemes to support and incentivise the retrofit of existing dwellings with energy saving measures such as wall and roof insulation, including the Better Energy Homes scheme, the Warmer Homes scheme and the Home Energy Savings Scheme, Better Energy Communities: •• The economic crisis resulting in behavioural changes in order to reduce energy costs and heating bills. Reduced income together with rising energy costs is likely to have resulted in increased fuel poverty over the time period. Figure 59 Unit Consumption of Energy per Dwelling (permanently occupied) 30,000 25,000 kWh/Dwelling per annum 20,000 15,000 10,000 5,000 0 1990 1992 Total 1994 1996 1998 2000 Total (climate corrected) 2002 2004 Electricity 2006 2008 2010 2012 2014 Fossil Fuel Energy One reason for the slowing trend in the late 1990s may be the trend towards larger houses as shown in Table 29 and Figure 60. Larger houses have more surface area, consume more energy and have greater heat losses than smaller ones in absolute terms. Table 29 shows that the fastest rate of growth in the floor area of new houses and flats occurred in the 2005 – 2010 period. Table 29 Growth Rates in Residential Floor Areas per New Dwelling65 New Houses New Flats Growth % 1990 – 2014 46.8 37.7 1990 – ‘14 1.6 1.3 1990 – ‘95 -0.1 0.3 Average annual growth rates % 1995 – ‘00 2000 – ‘05 2005 – ‘10 2.0 0.9 5.1 3.1 0.5 3.1 2010 – ‘14 -0.1 -0.7 2014 -1.9 -9.0 Average floor areas of new houses grew from 130 square metres in 1990 to 207 square metres in 2012 (an increase of 59%). The average declined slightly in the early 1990s and then grew at a rate of 2% per annum in the latter half of the decade. Average floor areas of new houses decreased by 7.7% between 2012 and 2014. Average floor areas of new flats showed strong growth over the period 1990 – 2014, from 64 square metres to 89 square metres (38%). The average floor area of flats decreased by 9% in 2014 relative to 2013. The ratio of new houses to new flats built in 1990 was approximately 25 to 1 whereas in 2014 it was approximately 8 to 1. The 2006 Census66 notes that in 1991, 6.5% of the housing stock consisted of apartments or flats whereas in 2011 the share was 10%. 65 Note that the figures used in Table 29 and Figure 60 are for the average floor area of new houses that were granted planning permission. It is not known if all those granted permission were actually built but the figures provide a plausible proxy for the trend in new house size. 66 CSO (2007), 2006 Census of Population – Volume 6 – Housing. 4 Sectoral Indicators Source: Based on SEAI, CSO and Met Éireann data 70 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 60 Floor Areas of New Houses and New Flats Average Floor Area Granted Planning Permission (m2) 220 200 180 160 140 120 100 80 60 40 1990 1992 1994 1996 1998 2000 2002 2004 Average Floor Area Per New House 2006 2008 2010 2012 2014 Average Floor Area Per New Flat Source: CSO 4 Sectoral Indicators While the data above only refer to new dwellings it is also possible to estimate the trend in the stock67 as a whole using the CSO dataset and a model of the stock of dwellings derived using, inter alia, data from DEHLG studies in the mid-1990s68. Data from this model is updated incrementally, using planning permission data and estimates of the number of permanently occupied dwellings. The results are presented in Figure 61. Table 30 summarises the growth rates during the period. Over the period 1990 – 2014 the estimated average floor area of the stock of dwellings types increased from 98 square metres in 1990 to 113 square metres in 2014. Table 30 Growth in Average Floor Area – Housing Stock Average Floor Area Growth % 1990 – 2014 1990 – ‘14 1990 – ‘95 15.6 0.6 0.3 Average annual growth rates % 1995– ‘00 2000 – ‘05 2005 – ‘10 0.6 0.7 0.9 2010 – ‘14 2014 0.6 0.4 Average floor area has increased steadily over the period as larger dwellings are added to the stock. Growth of 0.4% was recorded in 2014. The increasing trend in floor area has been offset somewhat by the growing number of flats. However, overall the dominant driving force is the number and size of large one off or non-estate dwellings that have been built in recent years. In 2014, the average floor area of non-estate houses granted permission was 245 square metres, compared to 143 square metres for houses in estates and 88 square metres for flats69. In 2007, 52% of the number of units granted planning permission were estate dwellings, 22% non-estate and 26% were apartments. In 2014 these ratios were 48%, 42% and 11% respectively. This explains why there was an increase in the average floor area in 2014 as there were a big percentage of non-estate units which tend to be large in size. The evidence suggests that there has been a trend towards larger dwellings (although estate house floor area has remained stable since 2008). Taken in isolation, this should have had a significant impact on the amount of energy demanded in the residential sector as bigger dwellings tend to have a larger demand for heating due to their greater wall surface area and therefore higher heat loss. This has been offset somewhat by the increasing insulation standards promoted through iterations of the building regulations. Other variables such as the changing fuel mix, more efficient heating systems, falling occupancy levels and the declining average number of persons per household have also had an impact. 67 This section draws on data first presented in a separate SEAI report entitled Energy Consumption and CO2 Emissions in the Residential Sector 1990 to 2004. The report is available at www.seai.ie. Methodology was revised for this publication. 68 Kevin O’Rourke (2005), Personal Communication. 69 CSO (2015), Planning Permissions – Quarter 2 2015. Available at www.cso.ie 71 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 61 Average Floor Area of the Housing Stock 1990 – 2014 Average Floor Area of Stock of Houses (m2) 120 115 110 105 100 95 90 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Table 31 Growth Rates and Quantities of Residential Unit Energy Consumption and Unit CO2 Emissions 2014 -8.7 -10.3 -3.7 Quantity (kWh) 1990 2014 26,068 17,604 21,956 13,011 4,112 4,593 Quantity (kWh) Total Energy Climate Corrected Fuel Energy Climate Corrected -34.7 -42.8 -1.8 -2.3 0.9 1.0 -3.3 -4.1 -3.6 -3.9 -2.2 -2.1 27,443 23,295 17,927 13,318 Electrical Energy Climate Corrected 11.1 0.4 0.5 -0.6 -2.8 -2.4 4,148 4,610 Unit Energy-Related CO2 Emissions Quantity (t) Total Energy CO2 -49.2 -2.8 -1.7 -2.1 -7.8 -9.0 10.7 5.4 Fuel CO2 -52.4 -3.0 -0.4 -1.1 -8.3 -10.9 7.0 3.3 Electricity CO2 -43.1 -2.3 -3.4 -3.6 -7.1 -5.7 3.7 2.1 Examining Table 31 and Figure 62 over the period 1990 – 2014, the emissions of energy-related CO2 per dwelling fell by 49% while the reduction for unit energy use was 32%. The unit fuel CO2 emission levels fell by 52% over the period as a result of consumers switching away from coal and peat to lower CO2 emitting fuels such as gas, oil and renewables. However, the downward trend was reversed in 2008, 2010 and 2013 when the energy use per household increased by 6.6%, 3.7% and 2.0% respectively. Total unit energy-related CO2 emissions in 2014 fell by 9%. Emissions from direct fuel use in households fell by 10.9% in 2014 as a result of reduced coal, peat, oil and gas consumption. Emissions associated with the use of electricity per dwelling fell by 43% over the period, despite the 12% increase in electricity consumption per dwelling. This is as a result of the reduced carbon intensity of electricity generation. This is particularly the case since 2002 when high efficiency Combined Cycle Gas Turbine (CCGT) plants were brought online and because of the growing contribution of renewables in electricity generation. The increasing use of electrical appliances will, however, have offset some of the gains. In 2014 the average dwelling was responsible for emitting 5.4 tonnes of energy-related CO2. A total of 3.3 tonnes CO2 (61%) came from direct fuel use in the home and the remainder indirectly from electricity use. Overall emissions per dwelling have fallen by 49% since 1990 and 35% since 2005. 4 Sectoral Indicators Growth % Average annual growth rates % Unit Energy Consumption 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 Total Energy -32.5 -1.6 0.3 -0.5 -7.1 Fuel Energy -40.7 -2.2 0.3 -0.6 -8.2 Electrical Energy 11.7 0.5 0.4 0.0 -3.5 Unit Energy Consumption Climate Corrected 72 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 62 Unit Energy-Related CO2 Emissions per Dwelling 12 t CO2/Dwelling per annum 10 8 6 4 2 0 1990 1992 1994 1996 CO₂ Emissions per Dwelling (Total) 1998 2000 2002 2004 CO₂ Emissions per Dwelling (Fossil Fuels) 2006 2008 2010 2012 2014 CO₂ Emissions per Dwelling (Electricity) 4 Sectoral Indicators 4.3.2 Residential Sector Energy Efficiency Two ODEX indicators are shown in Figure 63 for the household sector. The observed energy efficiency index is calculated based on actual energy consumption, whereas the technical energy efficiency index is calculated using theoretical consumption figures based on building regulations. Both indices are corrected for climatic variations; however, as a result of the methodology, there may be over-correction in mild years. This may be seen, for example, in 1998. Both indices are calculated as a three-year moving average in order to avoid these short-term fluctuations due to imperfect climate correction. The observed ODEX decreased by 39% over the period (2.6% per annum), indicating an improvement in energy efficiency. As the ODEX is a ‘top-down’ energy efficiency indicator it provides a measurement for gross energy efficiency savings in the residential sector but cannot be linked directly to specific energy efficiency measures or programmes. The technical ODEX decreased by 39% (2.5% per annum). It can be seen that the observed ODEX is approaching the technical ODEX, indicating an overall energy efficiency improvement, but energy efficiency gains can be negated by rebound effects. Rebound effects are where there is increased energy usage through higher comfort levels, the move towards whole house heating, larger dwellings, use of power showers, etc. 73 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Figure 63 Household ODEX 1995 – 2014 100 80 70 60 50 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Households Observed ODEX Households Technical ODEX 4 Sectoral Indicators Index 1995 = 100 90 74 ENERGY POLICY STATISTICAL SUPPORT UNIT 4.4 Commercial and Public Services Final energy use in the commercial and public services sector grew by 29% (1.1% per annum) over the period 1990 – 2014, to a figure of 1,251 ktoe. Growth was 24% if weather corrected energy use is considered. During this period the value added generated by the sector grew by 170% while the numbers employed increased by 126%. Figure 64 Commercial and Public Services Final Energy Use by Fuel 2 1.8 1.6 1.4 Mtoe 1.2 1 0.8 0.6 0.4 0.2 0 1990 1992 4 Sectoral Indicators Coal 1994 Peat 1996 Oil 1998 2000 2002 Natural Gas 2004 2006 Renewables 2008 NR(W) 2010 2012 2014 Electricity Figure 64 shows the changes in the fuel mix in the services sector over the period. One interesting feature is the small range of fuels utilised in this sector – essentially oil, gas and electricity accounting for 96% of the energy use. Oil and gas are used predominantly for space heating, but also for water heating, cooking and, in some subsectors, laundry. Gas consumption increased by 327% since 1990, to 401 ktoe although this was from a low base. Electricity is used in buildings for heating, air conditioning, water heating, lighting, information and communication technologies. Electricity in services is also used for public lighting and water and sanitation services. Electricity consumption in services increased by 130% (3.5% per annum) between 1990 and 2014, to 554 ktoe (6,442 GWh) and has a higher share at 44% than any other individual fuel in services, up from 25% in 1990. This growth is fuelled by the changing structure of this sector and the general increase in the use of information and communication technology (ICT) and air conditioning. Growth rates, quantities and shares are shown in Table 32. Table 32 Growth Rates, Quantities and Shares of Final Consumption in the Commercial and Public Services Sector Fossil Fuels (Total) Coal Oil Natural Gas Renewables Combustible Fuels (Total) Electricity Total Total Climate Corrected Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 -10.8 -0.5 0.1 -0.1 -5.9 -58.4 -3.6 -0.9 -5.1 -10.6 326.9 6.2 0.4 8.1 -2.3 142.8 39.6 19.6 -6.2 -0.3 0.2 0.2 -5.2 130.4 3.5 8.7 -3.3 -2.6 28.6 1.1 3.6 -1.3 -4.0 24.1 0.9 4.2 -3.9 -0.7 2014 -8.1 -17.1 -1.4 14.1 -7.3 1.1 -3.6 3.0 Quantity (ktoe) 1990 2014 732 653 1 605 252 94 401 44 732 686 240 554 972 1,251 1,025 1,272 Shares % 1990 2014 75.3 52.2 0.1 0.0 62.3 20.1 9.7 32.1 3.5 75.3 54.9 24.7 44.3 The key trends are as follows: •• Final energy use grew by 29% over the period 1990 – 2014 (1.1% per annum). The increase was 24% when corrected for weather. Overall energy use in this sector fell by 3.6% in 2014, however, on a weather corrected basis it increased by 3%. 75 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) •• Oil, gas and electricity make up 96% of the energy consumed in the services sector. The contributions from coal and peat were small in the early 1990s and are now negligible. •• Electricity became the dominant ‘fuel’ in this sector in 2005. Consumption of electricity increased by 130% over the period 1990 – 2014 and its share went from 25% to 44%. Electricity consumption in services increased by 1.1% in 2014 to 554 ktoe. •• Oil consumption fell by 17% in 2014 to 252 ktoe. The share of oil in the sector’s final consumption fell from almost 62% in 1990 to 20% in 2014. •• Natural gas consumption decreased by 1.4% in 2014 to 401 ktoe. Its share grew from 9.7% in 1990 to 32% in 2014. •• Overall fossil fuel use in services fell by 8.1% in 2014 to 653 ktoe. •• Renewable energy use in services increased by 14% in 2014 to 44 ktoe. The share of renewables in services was 3.5% in 2014. Figure 65 shows the primary energy-related CO2 emissions of the services sector, distinguishing between the on-site CO2 emissions associated with direct fuel use and the upstream emissions associated with electricity consumption. Emissions from non-electrical energy fell by 22% over the period and the emissions associated with electricity consumption increased by 17%. In 2014 the non-electricity emissions decreased by 9.1% and the electricity associated emissions in services fell by 1%. Overall energy-related CO2 emissions in this sector fell by 4.1% in 2014 to 4.7 Mt CO2. In the services sector, the share of emissions associated with electricity demand in 2014 was 63%. In 1990 the split between electricity and thermal fuels (oil and gas) emssions was closer to half and half (53% electricity and 47% fuels). Figure 65 Commercial and Public Services Sector CO2 Emissions by Fuel 9 8 7 4 Sectoral Indicators 6 MtCO2 5 4 3 2 1 0 1990 1992 Coal 1994 1996 Peat 1998 Oil 2000 2002 Natural Gas 2004 2006 Renewables 2008 2010 NR(W) 2012 2014 Electricity Table 33 Growth Rates, Quantities and Shares of CO2 Emissions in Commercial and Public Services Combustible Fuels Electricity Total Growth % Average annual growth rates % 1990 – 2014 ‘90 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 -22.3 -1.0 0.3 -1.1 -6.5 17.3 0.7 4.5 -6.7 -6.2 -1.3 -0.1 3.1 -4.8 -6.3 2014 -9.1 -1.0 -4.1 Quantity (kt) 1990 2014 2,225 1,729 2,505 2,940 4,730 4,669 Shares % 1990 2014 47.0 37.0 53.0 63.0 4.4.1 Energy Intensity of the Commercial and Public Services Sector The energy intensity of the services sector is generally measured with respect to the value added generated by services activities. As shown in Figure 66, this intensity is much flatter than that of industry, although has been showing a declining trend since 1994. The overall energy intensity of the services sector was 52% lower in 2014 76 ENERGY POLICY STATISTICAL SUPPORT UNIT than it was in 1990, principally because of the rapid growth in the value added in the sector. There was a general downward trend in services energy intensity since the early 1990s with exceptions in some years mostly due to colder weather in those years. Energy intensity in services fell by 7.7% in 2014. Electricity intensity increased by 59% up to 2003 and has been falling since then, with the exception of 2008. In 2014 electricity intensity decreased by 3.2% compared with 2013, was 43% below the peak in 2003 and 15% below the 1990 level. Figure 66 Energy Intensity of Commercial and Public Services Sector 0.3 0.25 Intensity kWh/€2011 0.2 0.15 0.1 0.05 0 1990 1992 1994 1996 1998 2002 2004 2006 Fuel Intensity 2008 2010 2012 2014 Electricity Intensity Two other measures in this sector are energy use per unit of floor area and per employee. The consumption of oil and gas is mainly for heating purposes and is related to the floor area heated, not directly related to the number of people occupying a building at a given time. Due to an absence of data on floor area in the services sector it is not currently possible to calculate the consumption per unit of floor area. Figure 67 Unit Consumption of Energy and Electricity per Employee in the Commercial and Public Services Sector 20,000 18,000 16,000 14,000 kWh/employee 4 Sectoral Indicators Total Intensity 2000 12,000 10,000 8,000 6,000 4,000 2,000 0 1990 1992 Total kWh/emp 1994 1996 1998 2000 Total (climate corrected) 2002 2004 2006 Fuel kWh/emp 2008 2010 2012 Electricity kWh/emp 2014 77 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Unit consumption of electricity per employee is used as an indicator of energy use in the services sector because, in the main, there is a correlation between electricity use and the number of employees. In Figure 67 it can be seen that unit consumption of electricity rose steadily after 1990. By 2003 it was 58% higher than in 1990 but by 2014 it had fallen back to 1.9% above 1990 levels. Electricity use per employee decreased by 0.5% in 2014. Fuel consumption per employee fell in 2014, by 8.5%, and stood at 58% below 1990 levels. If corrections are made for the effects of weather then the fuel consumption per employee increased by 0.6% in 2014 when compared with 2013. Table 34 Growth Rates and Quantities of Unit Consumption per Employee in Commercial and Public Services Total kWh/employee Fuel kWh/employee Electricity kWh/employee Climate Corrected (cc) Total kWh/employee (cc) Fuel kWh/employee (cc) Electricity kWh/employee (cc) Growth % Average annual growth rates % 1990 – 2014 1990 – ‘14 ‘00 – ‘05 ‘05 – ‘10 ‘10 – ‘14 -43.1 -2.3 -0.5 -2.8 -4.5 -57.9 -3.5 -3.8 -1.2 -5.5 1.9 0.1 4.3 -4.8 -3.2 -45.1 -59.5 0.8 -2.5 -3.7 0.0 0.1 -3.0 4.6 -5.4 -5.0 -5.9 2014 -5.1 -8.5 -0.5 -1.2 -0.8 -1.7 1.3 0.6 2.3 Quantity (kWh) 1990 2014 17,582 10,005 13,235 5,575 4,347 4,430 18,533 14,108 4,425 10,178 5,717 4,461 As a result of the heterogeneous nature of the services sector it is difficult to assess the amount of energy that is consumed. Energy statistics relating to fuel consumption for the services sector in Ireland are calculated as a residual. This approach is unsatisfactory, not least because the energy use in the sector is affected by uncertainties in all other sectors. As a result, there is only limited information available to policymakers with which to formulate and target energy efficiency policies and measures for the sector. 4.4.2 Public Sector Developments The public sector consists of approximately 4,400 separate public bodies, of which about 4,000 are individual schools. The other 400 comprise, inter alia, government departments, non-commercial state bodies, state-owned companies and local authorities. Each ‘public body’ is a stand-alone organisation and can range in size from very small (e.g. a small rural school or a five-person agency) to very large (the HSE, An Garda Síochána). The vast majority of energy is consumed by the ~100 or so largest organisations. Public services70 energy consumption comprises two main classes of energy consumer: •• Public sector buildings (offices, hospitals, clinics, nursing homes, schools, prisons, barracks, Garda stations, etc.), which primarily consume electricity, natural gas and oil-based fuels in addition to smaller amounts of renewable and solid fuels. •• Public sector utilities, which primarily consume electricity, e.g. waste water treatment plants, water treatment facilities, pumping stations, street lighting (~400,000 units). The Third National Energy Efficiency Action Plan (NEEAP) and the European Union (Energy Efficiency) Regulations (SI 426 of 2014) set out several obligations on public bodies with respect to their ‘exemplary role’ for energy efficiency. The NEEAP sets a 33% efficiency target for the sector by 2020, equivalent to 279 ktoe. Since 1st January 2011, public sector bodies have been required to report to Government annually on their energy usage and the actions they have taken to reduce consumption. The SEAI and the Department of Communications Energy and Natural Resources (DCENR) have recently developed an energy monitoring and reporting system71 to satisfy the reporting requirements of both SI 426 of 2014 and the NEEAP. Since 2013, all public sector organisations have been obliged to use this system to report their annual energy consumption to SEAI. The system includes a national public sector energy database, which includes all public sector electricity and natural gas meter numbers. Over time, the monitoring and reporting system will build a comprehensive bottom-up picture of energy consumption in the sector through the population of the national public sector energy database. 70 In addition, the energy consumed by public bodies also includes some consumption counted in the transport sector in the National Energy Balance, e.g. public transport fleets (rail, bus, etc.) as well as other transport fleets operated by public bodies; e.g. ambulances, local authority vehicles, Garda fleet, Defence Forces’ vehicles, etc. 71 Additional information on this system is available from www.seai.ie/Your_Business/Public_Sector/Reporting/ 4 Sectoral Indicators The increasing number of energy suppliers in the liberalised market makes this task all the more difficult. Thus, the current data does not allow for ODEX indicators to be formulated. Work is ongoing, however, within the ODYSSEE project to address this situation and new data will become available in the near future from a joint CSO/SEAI survey on Business Energy Use should enable deeper analysis of the service sector energy use. 78 ENERGY POLICY STATISTICAL SUPPORT UNIT 4 Sectoral Indicators In 2014 SEAI published the Annual Report 2014 on Public Sector Energy Efficiency Performance72. It noted that 238 public sector bodies completed reports on energy and these represented 85% of total public sector energy consumption. The total energy consumption in 2013 of these bodies was 8,495 GWh (primary energy), which consisted of 4,595 GWh of electricity, 1,976 GWh of thermal energy and 1,923 GWh of transport energy. The report also noted that these bodies had achieved annual primary energy savings of 1,343 GWH or a 14% improvement on business as usual, yielding a cost saving of €74 million. The public sector has a target of 33% energy efficiency improvement by 2020. 72Available from http://www.seai.ie/Publications/Your_Business_Publications/Public_Sector/Annual-Report-2014-on-Public-Sector-Energy-EfficiencyPerformance-.pdf ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 79 5 Energy Statistics Revisions and Corrections Some changes, revisions and corrections to the historic energy balance data were implemented during 2015. The most significant of these were: •• Natural gas production and stock changes have been revised to reflect a more accurate source of this data; •• Natural gas use in LGVs is included from 2014; •• Tallow use in biomass has been revised from 2011 as this had previously been over estimated; •• Solar PV is now included from 2009; •• Own use and distribution losses have been updated to reflect calorific values sourced from audited ETS data; •• Road freight has been revised and now uses the latest koe/tkm as per the EU-27 based on ODYSSEE data; •• Estimates of private car use have been updated from 2005 based on updated and improved methodology; •• Fuel tourism has been revised to reflect the latest data from the Department of the Environment, Community and Local Government; •• Fisheries is now estimated and included from 1990 to 2002. Energy balance data analysed in this report were frozen on 12th October 2015. Balance data are updated whenever more accurate information is known. To obtain the most up-to-date balance figures, visit the statistics publications section of the SEAI website (www.seai.ie/Energy-Data-Portal/Energy%20Data%20Publications/). A new Data Portal on this website links to interactive energy statistics, forecasts and other data developed by SEAI. 5 Revisions & Corrections An energy data service is also available at http://www.cso.ie/px/pxeirestat/pssn/sei/Database/SEI/Energy%20 Balance%20Statistics/Energy%20Balance%20Statistics.asp. This service is hosted by the Central Statistics Office with data provided by SEAI. 80 ENERGY POLICY STATISTICAL SUPPORT UNIT Glossary of Terms Carbon Dioxide (CO2): A compound of carbon and oxygen formed when carbon is burned. Carbon dioxide is one of the main greenhouse gases. Units used in this report are t CO2 – tonnes of CO2, kt CO2 – kilo-tonnes of CO2 (103 tonnes) and Mt CO2 – mega-tonnes of CO2 (106 tonnes). Carbon Intensity (kg CO2/kWh): This is the amount of carbon dioxide that will be released per kWh of energy of a given fuel. For most fossil fuels the value of this is almost constant, but in the case of electricity it will depend on the fuel mix used to generate the electricity and also on the efficiency of the technology employed. Renewable sources of electricity generation, such as hydro and wind, have zero carbon intensity. Weather Correction: Annual variations in weather affect the space heating requirements of occupied buildings. Weather correction involves adjusting the energy used for space heating by benchmarking the climate in a particular year with that of a long-term average measured in terms of number of degree days. Combined Heat and Power Plants: Combined heat and power (CHP) refers to plants which are designed to produce both heat and electricity. CHP plants may be autoproducer (generating for own use only) or third-party owned selling electricity and heat on site as well as exporting electricity to the grid. Energy Intensity: The amount of energy used per unit of activity. Examples of activity used in this report are gross domestic product (GDP), value added, number of households, employees, etc. Where possible, the monetary values used are in constant prices. Gross and Net Calorific Value (GCV and NCV): The gross calorific value (GCV) gives the maximum theoretical heat release during combustion, including the heat of condensation of the water vapour produced during combustion. This water is produced by the combustion of the hydrogen in the fuel with oxygen to give H2O (water). The net calorific value (NCV) excludes this heat of condensation because it cannot be recovered in conventional boilers. For natural gas, the difference between GCV and NCV is about 10%, for oil it is approximately 5%. Gross Domestic Product (GDP): The gross domestic product (GDP) represents the total output of the economy over a period. Gross Final Consumption (GFC): Directive 2008/28/EC defines Gross Final Consumption (GFC) of energy as the energy commodities delivered for energy purposes to industry, transport, households, services, agriculture, forestry and fisheries, including the consumption of electricity and heat by the energy branch for electricity and heat production, and including losses of electricity and heat in distribution. Gross Electrical Consumption: Gross electricity production is measured at the terminals of all alternator sets in a station; it therefore includes the energy taken by station auxiliaries and losses in transformers that are considered integral parts of the station. The difference between gross and net production is the amount of own use of electricity in the generation plants. Glossary Heating Degree Days: ‘Degree Days’ is the measure or index used to take account of the severity of the weather when looking at energy use in terms of heating (or cooling) ‘load’ on a building. A degree day is an expression of how cold (or warm) it is outside, relative to a day on which little or no heating (or cooling) would be required. It is thus a measure of cumulative temperature deficit (or surplus) of the outdoor temperature relative to a neutral target temperature (base temperature) at which no heating or cooling would be required. Nominal and Real Values: Nominal value refers to the current value expressed in money terms in a given year, whereas real value adjusts nominal value to remove effects of price changes and inflation to give the constant value over time indexed to a reference year. Structural Effect: As it affects energy intensity, structural change is a change in the shares of activity accounted for by the energy consuming sub-sectors within a sector. For instance, in industry the structural effect caused by the change in emphasis of individual sub-sectors such as pharmaceuticals, electronics, textiles, steel, etc in their contribution to gross domestic product. Total Final Consumption (TFC): This is the energy used by the final consuming sectors of industry, transport, residential, agriculture and services. It excludes the energy sector: electricity generation, oil refining, etc. Total Primary Energy Requirement (TPER): This is the total requirement for all uses of energy, including energy used to transform one energy form to another (e.g. burning fossil fuel to generate electricity) and energy used by the final consumer. Value Added: Value added is an economic measure of output. The value added of industry, for instance, is the additional value created by the production process through the application of labour and capital. It is defined as the value of industry’s output of goods and services less the value of the intermediate consumptions of goods (raw materials, fuel, etc.) and services. 81 ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) Energy Conversion Factors To: From: toe MWh GJ toe MWh GJ 1 0.086 0.02388 11.63 1 0.2778 41.868 3.6 1 Multiply by Energy Units joule (J): Joule is the international (S.I.) unit of energy. kilowatt hour (kWh): The conventional unit of energy that electricity is measured by and charged for commercially. tonne of oil equivalent (toe): This is a conventional standardised unit of energy and is defined on the basis of a tonne of oil having a net calorific value of 41686 kJ/kg. A related unit is the kilogram of oil equivalent (kgoe), where 1 kgoe = 10-3 toe. Decimal Prefixes 101 102 103 106 109 1012 1015 1018 deci (d) centi (c) milli (m) micro (µ) nano (n) pico (p) femto (f ) atto (a) 10-1 10-2 10-3 10-6 10-9 10-12 10-15 10-18 Conversion Factors deca (da) hecto (h) kilo (k) mega (M) giga (G) tera (T) peta (P) exa (E) 82 ENERGY POLICY STATISTICAL SUPPORT UNIT Calorific Values Fuel Crude Oil Gasoline (petrol) Kerosene Jet Kerosene Gasoil / Diesel Residual Fuel Oil (heavy oil) Milled Peat Sod Peat Peat Briquettes Coal Liquefied Petroleum Gas (LPG) Petroleum Coke Net Calorific Value toe/t 1.0226 1.0650 1.0556 1.0533 1.0344 0.9849 0.1860 0.3130 0.4430 0.6650 1.1263 0.7663 Net Calorific Value MJ/t 42,814 44,589 44,196 44,100 43,308 41,236 7,787 13,105 18,548 27,842 47,156 32,084 Conversion Factor 86 toe/GWh Conversion Factor 3.6 TJ/GWh Electricity Emission Factors t CO2/TJ (NCV) g CO2/kWh (NCV) Motor Spirit (Gasoline) 70.0 251.9 Jet Kerosene 71.4 257.0 Other Kerosene 71.4 257.0 Gas/Diesel Oil 73.3 263.9 Residual Oil 76.0 273.6 LPG 63.7 229.3 Naphta 73.3 264.0 Petroleum Coke 92.9 334.5 Liquid Fuels Solid Fuels and Derivatives Coal 94.6 340. 6 Milled Peat 116.7 420.0 Sod Peat 104.0 374.4 Peat Briquettes 98.9 355.9 56.9 204.7 126.8 456.6 Gas Conversion Factors Natural Gas Electricity (2014) ENERGY IN IRELAND 1990 – 2014 (2015 REPORT) 83 Sources Applus+ (National Car Test) Central Statistics Office Department of Communications, Energy and Natural Resources Department of Environment, Heritage and Local Government Department of Transport EirGrid Environmental Protection Agency ESB Networks European Commission DG TREN EU-funded ODYSSEE Project Eurostat International Energy Agency Met Éireann Revenue Commissioners Sources Vehicle Registration Unit 84 ENERGY POLICY STATISTICAL SUPPORT UNIT References ADEME, European Commission (2005), Energy Efficiency Monitoring in the EU-15, Paris: ADEME. 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Bunkers Stock Change Primary Energy Supply (incl. non-energy) Primary Energy Requirement (excl. non-energy) Transformation Input Public Thermal Power Plants Combined Heat and Power Plants Pumped Storage Consumption Briquetting Plants Oil Refineries and other energy sector Transformation Output Public Thermal Power Plants Combined Heat and Power Plants – Electricity Combined Heat and Power Plants – Heat Pumped Storage Generation Briquetting Plants Oil Refineries Exchanges and Transfers Electricity Heat Other Own Use and Distribution Losses Available Final Energy Consumption Non-Energy Consumption Final non-Energy Consumption Total Final Energy Consumption Industry Non-energy mining Food, beverages and tobacco Textiles and textile products Wood and wood products Pulp, paper, publishing and printing Chemicals and man-made fibres Rubber and plastic products Other non-metallic mineral products Basic metals and fabricated metal products Machinery and equipment n.e.c. Electrical and optical equipment Transport equipment manufacture Other manufacturing Transport Road Freight Light Goods Vehicles (LGV) Road Private Car Public Passenger Services Rail Domestic Aviation International Aviation Fuel Tourism Navigation Unspecified Residential Commercial/Public Services Commercial Services Public Services Agricultural Fisheries Statistical Difference Coal 1,226 10 46 1,262 1,262 942 942 17 17 338 326 107 21 86 219 12 Peat 971 2 -201 768 768 668 542 8 119 92 92 13 179 201 1 1 200 -22 Oil 0 7,912 1,406 134 80 6,453 6,249 2,874 55 5 2,814 2,871 2,871 -19 -19 71 6,359 203 203 6,165 471 30 117 2 2 3 24 9 159 45 5 38 4 34 4,402 598 293 2,060 148 35 4 745 310 72 137 857 252 162 90 158 24 -8 Natural Gas 123 3,590 0 8 3,721 3,721 2,017 1,714 258 45 0 0 64 1,640 0 0 1,632 695 11 94 1 2 3 58 4 15 383 5 111 2 6 0 0 536 401 176 225 0 8 Renewables Non-Renew/Waste Electricity 891 63 133 245 0 61 0 -3 1,021 63 185 1,021 63 185 128 25 58 120 25 8 43 15 46 6 1,760 42 6 1,558 4 178 24 -503 503 -503 503 0 0 262 390 38 2,128 0 0 0 396 38 2,076 171 38 808 0 58 35 172 0 10 108 35 0 19 0 147 0 35 28 38 51 0 64 0 21 0 100 0 17 0 78 116 3 22 11 62 5 0 3 0 0 11 0 5 65 663 44 554 39 397 5 157 0 48 0 -5 52 Total 2,048 13,106 1,478 134 -69 13,473 13,270 6,712 3,397 280 43 119 2,874 4,775 1,558 178 0 24 92 2,871 -2 0 0 -2 410 11,072 203 203 10,833 2,292 99 440 14 147 24 230 48 378 492 30 248 23 118 4,522 621 303 2,122 153 38 4 745 321 72 142 2,539 1,251 773 478 206 24 36 Note: This is the short version of the energy balance. A more detailed expanded balance showing detailed sub-fuel data is available on the SEAI website at http://www.seai.ie/statistics Sustainable Energy Authority of Ireland Energy Policy Statistical Support Unit Building 2100 Cork Airport Business Park Co. Cork Ireland t +353 1 808 2100 f +353 21 240 7987 [email protected] wwww.seai.ie Sustainable Energy Authority of Ireland Wilton Park House Wilton Place Dublin 2 Ireland t +353 1 808 2100 f +353 1 808 2002 einfo[email protected] wwww.seai.ie @seai_ie The Sustainable Energy Authority of Ireland is partly financed by Ireland’s EU Structural Funds Programme co-funded by the Irish Government and the European Union
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