Irelands Energy Policy AnneMarie Clancy Strategic Energy Policy

Ireland’s Energy Policy Anne-Marie Clancy Strategic Energy Policy DCCAE 16 October 2019

Presentation Overview Long Term Planning Project 2040 and NDP Clean Energy Package Draft NECP IEA Country Review Climate Action Plan Budget 2020 Body Level One Next Steps NECP & LTS Body Level –Two Body Level Three Body Level Four Body Level Five 2 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Long Term Planning • Energy White Paper 2015 -2030 • National Mitigation Plan • Project 2040 and National Development Plan • Range of new measures across sectors • NECP - year by year basis to 2030 and looks out to 2035 and 2040 • Body Level One Trajectory to decarbonised energy system • Body Level Two Body Level Three. Action Plan Government Climate Body Level Four Body Level Five 3 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Project Ireland 2040 • Guide the future development of Ireland, taking into account a projected 1 million increase in our population, the need to create 660, 000 additional jobs to achieve full employment and a need for 550, 000 more homes by 2040; leads to demand impact across energy, climate, infrastructure, waste, communications, etc. • Of the 1 million extra people, • 25% is planned for Dublin, recognised as our key international and global city of scale and principal economic driver, • 25% across the other four cities combined (Cork, Limerick, Galway and Waterford), enabling all four to Body Level grow their. One population and jobs by 50 -60%, and become cities of greater Body Level Two scale • with the. Level remaining Body Three 50% of growth to occur in key regional centres, towns, villages and rural areas. Body Level Four Body Level Five 4 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

National Development Plan • Long-term (10 year) strategic approach to investment. • Sustained increase in investment share of national income to meet infrastructural needs. • Establishment of four new funds, with a combined allocation of € 4 billion, to be allocated on a competitive basis for projects which meet the criteria of the funds. • Establishment of a new National Regeneration and Development Agency to maximise the potential use of underutilised land banks in cities and towns. • Body Level One DCCAE funding amount of € 21. 8 bn (of which € 7. 6 bn is Exchequer) but actual allocations will depend on design and Body Level Two adoption of individual measures to meet these commitments Body Level Three and on funding allocations Body Level Four in annual Estimates process. Body Level Five 5 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Climate Action Fund Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 6 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Clean Energy Package 1. Energy Efficiency Directive 2. Energy Performance in Buildings Directive 3. Renewable Energy Directive 4. Electricity Internal Market Design Directive 5. Electricity Internal Market Design Regulation 6. Agency for the Cooperation of Energy Regulators Regulation 7. 8. Body Level One Body Level Two Risk Preparedness in the Electricity Sector Regulation Body Level Three Body Level Four Governance of the Energy Union Regulation Body Level Five 7 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Governance Regulation • Integrate energy and climate planning and reporting for the period 2021 to 2030. • Existing plans and reporting structures such as the NREAP, the NEEAP and the Climate Monitoring Mechanism Regulation will be combined into a single planning and reporting structure. • A National Energy and Climate Plan (NECP), covering the period 2021 to 2030, will include trajectories for national emissions, renewable energy and energy efficiency and the measures required to achieve these trajectories. Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 8 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

NECP – Development to date • Initial consultation on template and approach – November 2018 • Second public consultation – Jan/Feb 2019 • Draft submitted to European Commission – December 2018 • Under the draft plan there is an emissions gap to 2030 target • All of Government Climate Action Plan will stretch these targets further to close the emissions gap Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 9 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

NECP – Draft content • • • Encompassing impacts of the National Development Plan (NDP) Plus 55% RES-E, additional SSRH spend a higher biofuel blend by 2030, Have a significant impact on the estimated overall RES in 2030 Key assumptions Body Level One Body Level Two Body Level Three Body Level Four Body Level Five • • • EE upgrade 40 k homes pa RESS driving 55% RES-E SSRH extended to 2030 500 k EVs 170 k oil homes to heat pumps 10 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

NECP – Iterative process • Commission technical working Group • Member States, Commission directorates and technical agencies • Information/query sharing opportunities with other Member States • Commission feedback on template topics and expert presentations • Body Level One Bilateral meetings with Member States • Body Level Two Body Level Three Commission recommendations – published 18 June 2019 Body Level Four Body Level Five 11 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

IEA Review – Key Recommendations • Set an Emission Reduction Trajectory • Set trajectories towards renewable and energy efficiency targets • Develop a time-bound roadmap for decarbonising the heating sector • Reform the Carbon Tax • Put in place an automatic upward adjustment of the carbon tax • Re-invest carbon tax revenues into energy efficiency and climate activities • Body Level One Facilitate necessary Infrastructure Investments Body Level Two • Provide continuity and longer-term certainty to instil Body Level Three investor confidence Body Level Four • Improve the efficiency of the planning consent regime Body Level Five 12 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Development of Climate Action Plan Jan – March 2019 18 Jan 2019 Dec 2018 – Jan 2019 Nov. 2018 Government Decision to prepare new plan Initial consultations with Departments and Agencies High Level Consultative Forum, Croke Park 11 Cross. Departmental Working Groups March - May 2019 Development of MACC analysis March -May 2019 Ongoing engagement with Officials and Ministers in drafting of Plan Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 13 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment 17 June 2019 Government adoption of Plan

Key features of plan • 2030 targets for carbon emissions reduction, and put us on a trajectory to net zero by 2050 • 183 actions with detailed steps to deliver and clear timelines and owners • Structures for strong governance and oversight • Citizen involvement – Citizens’ Assembly, JOC on Climate Action, Stakeholder forum • Body Level One A just transition review group Body Level Two Body Level Three Body Level Four Body Level Five 14 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Key Measures to Meet Targets Phase-out of coal- and peat-fired electricity generation Increased onshore wind capacity Deploy significant offshore wind capacity Switch from ICE diesel and petrol cars and delivery vans to BEVs Switch from ICE buses and trucks to BEVs, CNGs, and PHEVs Retrofit homes with insulation Replace oil boilers with electric heating sources (e. g. heat pumps) Body Level One Increase use of alternative fuels (e. g. waste) for cement production Body Level Two Switch from oil to biomass and electricity in food industry Body Level Three Body Level Four Deliver measures identified in Teagasc MACC, including: Body Level Five - Advanced manure management, reduce nitrogen emissions, Animal production efficiency 15 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Electricity Increase electricity generated from renewable sources to 70% Streamline consenting and connection arrangements Phase-out of coal- and peat-fired electricity generation Community participation in renewable generation Support scheme for micro-generation Body Level One Body Level Two Funding supports for new technologies on and off shore Body Level Three Body Level Four Body Level Five 16 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Buildings Design policy to upgrade 500, 000 homes to BER B 2 Install 600, 000 renewable energy heating sources Stricter requirements for buildings New supply chain & model for retrofits - grouped together Body Level One Develop roadmap for delivering District Heating potential Body Level Two Body Level Three Body Level Four Body Level Five 17 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Transport Accelerate penetration of EVs into sales of cars and vans on the route to 100% by 2030 950, 000 EVs by 2030, with associated charging network Body Level One Renewable Biofuel Body Level Two content • • Body Level Three 10% in petrol Body Level Four 12% in diesel Body Level Five 18 Rialtas na hÉireann | Government of Ireland Make growth less transport intensive through better planning, and modal shift Decarbonising public transport • Implement major projects • Conversion of public fleets

Governance Oversight Monitoring and Reporting Climate Action (Amendment) Bill Climate Action Delivery Board • reporting to Cabinet Committee and Cabinet • quarterly reports published • • • New Climate Action Council Carbon Budgets Target range for each sector 2050 target Long-term Strategy Joint Oireachtas Committee Carbon proofing of Government policies Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 19 Rialtas na hÉireann | Government of Ireland Just Transition Monitoring and Review Group • reporting to Climate Action Delivery Board DCCAE – Internal Delivery Board • Monthly updates to Secretary General

Move from 2020 to 2030 Electricity • Increased renewables (55%) Climate Plan now 70% • More technologies, offshore, solar, Heating/Cooling • Switch to heat pumps • SSRH growth • Biogas Transport • Electric mobility • Biofuels • CNG for heavier vehicles Body Level One • Body Hydrogen Level potential Two Efficiency Body Level Three • Domestic industry Bodyand Level Four programmes, underpinned by NDP Body Levelregulations Five • Stronger planning (n. ZEB) 20 Rialtas na hÉireann | Government of Ireland

Likely energy market changes • Growth in decentralised generation • Growth in electro mobility • Growth in electricity for heating • Growth in consumer interaction • Local demand side management • • Body Level One Introduction of local Body Level Twostorage solutions Body Level Three Introduction. Body of peer to peer Level Fourtrading Body Level Five 21 Rialtas na hÉireann | Government of Ireland

Key Budget 2020 announcements Taxation Measures • € 6 increase in carbon tax • NOx basis for VRT on new and imported petrol and diesel cars • Changes in Electricity Tax Ring-fencing of additional carbon tax revenues: Protecting the Vulnerable • Increase in winter fuel allowance • Energy efficiency housing upgrades Just Transition • Aggregated Housing Upgrade Scheme for Midlands region • Peatlands rehabilitation • Just Transition Fund Bodyin. Level One transition Investments low carbon • Greenways/Urban Body Level Two Cycling • EV purchase grants and investments in charging infrastructure Body Level Three • Green Agricultural Pilots Body Level Four Green Climate Fund Body Level Five 22 Rialtas na hÉireann | Government of Ireland

NECP – Next Steps • Final plan will take into account – • Further analytical work is ongoing with Depts. and Agencies • We are currently remodelling (SEAI & EPA) using updated assumptions • Modelling and projections • Will. Body go for public consultation again in Q 4 2019 Level Two • Final NECP to be plan submitted by 31 Dec 2019 • • Climate Action Plan Public consultation responses Commission recommendations (18/06/2019) ESRI – CSO – SEAI – EPA Body Level One Body Level Three Body Level Four Body Level Five 23 An Roinn Cumarsáide, Gníomhaithe ar son na h. Aeráide & Comhshaoil | Department of Communications, Climate Action & Environment

Thank you Anne. Marie. Clancy@dccae. gov. ie