Renewable Heat Obligation
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
Heat-related greenhouse emissions from the use of fossil fuels in our homes, businesses and industry accounted for 13.1 MtCO2 of emissions in 2021, which is equivalent to 37% of total energy-related emissions or 21% of total national greenhouse gas emissions. Despite efforts to add insulation and install more efficient technology, Ireland continues to have an excessive dependence on fossil fuels for heating.
Primarily due to economic growth, emissions from heating have risen 12% from post-recession lows of 2014. The renewable share of this heat was 5.2% in 2021, down from 6.3% in 2020. This trend must be reversed immediately if the heat sector is to meet its share of the required emissions reductions.
The Climate Action and Low Carbon Development (Amendment) Act 2021 commits Ireland to reaching a legally binding target of net-zero emissions by no later than 2050, and a cut of 51% by 2030 (compared to 2018 levels). These targets are aligned with Ireland’s obligations under the Paris Agreement, which aims to limit global temperature increases by restricting the total amount of greenhouse gas emissions emitted into the atmosphere. They are also consistent with the EU Green Deal objective to achieve an economy-wide reduction in greenhouse gases of at least 55% by 2030 and to achieve climate neutrality in the European Union by 2050.
Ireland’s new binding renewable targets out to 2030 will set out in the update to Ireland’s National Energy and Climate Plan, as part of Ireland’s contribution to European level renewable energy targets. It is clear, delivery will require a major ramp up in key decarbonisation activities across all sectors and full societal engagement, supported by Government.
To support the need to decarbonise the heat sector, Government has agreed to the introduction of a Renewable Heat Obligation (RHO). The RHO will support an increased use of renewable energy in the heat sector and contribute to a reduction in emissions in line with Ireland’s climate ambitions. As Ireland imports most of its fossil fuels, the heating sector is a significant contributor to Ireland’s high energy import dependency. The RHO will also help reduce our reliance on imported fossil fuels and strengthen our energy security due to greater diversification of our energy streams.
The development of the RHO will be underpinned by a number of technical assessments and extensive stakeholder engagement activities.
We are committed to engaging with stakeholders in a clear, open, and transparent manner. No decisions have been made in relation to the final structure of the RHO, or how it will be implemented, as feedback received will be taken into consideration as final decisions are taken as part of the development and design process.
In October 2021, we launched a public consultation seeking views from interested parties on the potential introduction of an RHO.
The consultation was open for submissions for a ten-week period, closing on the 29 October 2021. A total of 50 submissions were received from a wide range of stakeholders, including members of the public and industry groups.
Responses largely aligned with positions set out in the consultation document, with 76% of respondents agreeing that an RHO was an appropriate measure to support a reduction of greenhouse gas emissions in the heat sector. Respondents highlighted the need for a considerable level of market maturity to support the introduction, and called for the obligation to be implemented in parallel with initiatives and supports to incentivise the economic development of the renewable heat sector.
Using feedback received as part of the public consultation in 2021, we completed an initial scoping exercise to examine potential RHO structures, and carried out a high-level economic, social impact analysis on potential RHO parameters.
As part of this exercise, the national breakdown of heating energy sources and associated fuel supply chains were reviewed to examine appropriate methods of obligation, allowable measures for compliance, and a suitable target rate and trajectory.
The benefit of a potential obligation structure and associated parameters has been analysed against resulting economic and social costs of the RHO. Results have informed the next phase of stakeholder engagement.
We have developed a number of key questions on a potential obligation structure and associated parameters. The focus of this next phase of consultation activity is to seek feedback to help inform any final decisions taken on the RHO design.
The key areas for consideration are:
Further details on this consultation and how to submit your views will be available here in due course.