Business and Public Sector Energy

Increased energy efficiency in business and the public sector results in reduced costs, energy savings and increased domestic competition. It also means there is less reliance on imported fossil fuels, resulting in lower greenhouse gas emissions. This helps Ireland move closer to its national and EU energy efficiency and emissions reduction targets. Through the Sustainable Energy Authority of Ireland (SEAI), the government supports schemes which help to achieve this, such as energy efficiency, renewable heat and district heating schemes.

There are multiple benefits for businesses investing in energy efficiency such as reduced costs through energy savings, which results in increased competitiveness and an improved, more comfortable working environment. Improved energy efficiency also leads to reduced emissions and enhanced green credentials, which can contribute to national climate action goals. The Sustainable Energy Authority of Ireland (SEAI) offers a suite of supports specifically for the business sector.

The available supports include:

• Energy Auditing Compliance Scheme – The EU Energy Efficiency Directive (2012/27/EU) requires large organisations, public and private, to complete energy audits every four years. The SEAI has established the Energy Auditing Compliance Scheme to meet this legislative requirement and allow those obligated organisations to report compliance. The SEAI also offers guidance and support to organisations to assist them in meeting their legal obligations.
• SEAI Energy Academy - a new initiative specifically designed for small and medium enterprises. This free online resource is designed by experts and gives SMEs access to high quality energy training.
• Accelerated Capital Allowance (ACA) - a tax incentive to encourage companies to invest in energy efficient equipment. It allows companies to deduct the full cost of such equipment from their taxable profits in the same year of purchase. Products that are eligible for the ACA are listed on the Triple E Product Register.
• Excellence in Energy Efficiency Design (EXEED) – a programme that supports organisations, both public and private, to improve energy efficiency, and to embed energy efficient design thinking that will continue to benefit the organisation.

The 2009 Renewable Energy Directive requires Ireland to meet 16% of our energy requirements from renewable sources by 2020. In order to achieve this objective, Ireland set a target of 12% renewable energy in the heat sector. In 2018, 6.5% of the energy used in the heat sector was renewable.

The Support Scheme for Renewable Heat (SSRH) has been developed to financially support the adoption of renewable heating systems by commercial, industrial, agricultural, district heating and other non-domestic heat users not covered by the EU Emissions Trading Scheme.

The Scheme is made up of two support mechanisms – an installation grant for heat pumps and an operational support for biomass and anaerobic digestion (i.e. biogas) heating systems. The primary objective of the Scheme is to contribute to meeting Ireland’s renewable energy targets while also reducing greenhouse gas emissions.

Project Ireland 2040 sets out an allocation of €300 million for the rollout of the Scheme for the period up to 2027. The Sustainable Energy Authority of Ireland operate the SSRH on behalf of the Department of the Environment, Climate and Communications (DECC).

District heating can play an important role in improving energy efficiency and reducing emissions. Given that end-users are supplied with heat rather than fuel, district heating networks can offer flexibility in fuel choice, and the ability to adapt to changes in the economic and policy landscape that may see different combinations of energy resources used at different times over the lifetime of a district heating network.

The recast 2018 Renewable Energy Directive defines the terms 'district heating' or 'district cooling' as the distribution of thermal energy in the form of steam, hot water or chilled liquids, from central or decentralised sources of production through a network to multiple buildings or sites, for the use of space or process heating or cooling.

District heating systems may vary in size, have different types and numbers of customers, and utilise a variety of supply sources. This diversity of systems gives rise to different barriers, opportunities, and levels of difficulty with regards to implementation. In Europe, the term district heating is generally only used for networks serving neighbourhoods, towns, or cities.

District heating currently accounts for a very small share of the Irish heating sector, estimated to be significantly less than 1%, representing one of the lowest shares of district heating in Europe. The Government recognises the contribution that district heating can make to Ireland’s energy and climate goals.

The National Comprehensive Assessment of the Potential for District Heating and Cooling, completed by the Sustainable Energy Authority of Ireland (SEAI) in August 2021, revealed greater potential for district heating throughout the country than previously considered. Analysis undertaken by SEAI as part of the recently completed National Heat Study suggests that district heating could provide as much as around 50% of building heating demand in Ireland.

District Heating Steering Group

The Climate Action Plan 2021 reaffirms the significant contribution district heating can make to increasing the level of renewable energy in the heat sector and reducing emissions, and includes a number of district heating related actions. Action 187 sets out the need to establish a system of governance for the development of district heating policy, and a District Heating Steering Group has been established to coordinate the development of district heating policy.

In 2009, the Public Sector was set a target of 33% energy efficiency savings by 2020 to demonstrate leadership to all other sectors of the economy in reducing our national energy use. New and even more ambitious targets are set for 2030 – 50% energy efficiency, all public buildings to achieve a B BER rating and a new emission reduction target of 50%.

To support the delivery of this target, the Public Sector Energy Efficiency Strategy was published in 2017 to help the sector to deliver on its 2020 target and beyond. The Strategy introduced a governance structure ensuring leadership and accountability at senior level, enhanced existing supports and measures and introduced new ones. A crucial initiative under the Strategy is the introduction of the pathfinder partnership programmes focusing on energy efficiency retrofit of public sector buildings. The main objective of this initiative is to test approaches, build best practice and capacity to develop a scalable retrofit model which can be replicated across all schools and wider public sector.

Since the Strategy’s publication, progress towards the 2020 target has improved significantly. By year-end 2019 the public sector had achieved 29% improved energy efficiency, and delivered over €1.55 billion in avoided energy spend and 5.22 million tonnes of avoided emissions.

The SEAI is responsible for reporting annually on the sector’s energy performance and provides a dedicated Public Sector Energy Programme which offers a suite of supports including expertise, training and mentoring programmes to assist public bodies in improving their energy performance.

Market surveillance is the activities carried out and measures taken by public authorities to ensure that products are in compliance with legal requirements. EU legislation (Energy Labelling, Eco-design and Tyre Labelling) is in place to provide consumers with information regarding the energy consumption and environmental performances of energy-using products. The Minister for Communications, Climate Action and Environment is the legal authority for Market Surveillance Energy Labelling, Eco-design and Tyre Labelling and has appointed the SEAI to undertake market surveillance activities. This includes compliance, promotion, monitoring and verification.

The revised Energy Efficiency Directive (2023/1791) (‘EED’) introduces an obligation for the monitoring and reporting of the energy performance of data centres. The EED aims to enhance data centre sustainability by requiring data collection relevant to energy performance, water footprint, and demand-side flexibility. Article 12 of the EED seeks to drive efficiency by mandating public reporting of key information for data centres over 500kW and encouraging best practices referred to in the most recent version of the European Code of Conduct on Data Centre Energy Efficiency for those over 1MW. The EED is supplemented by the directly effective delegated regulation 2024/1364 with the first phase of establishing a Union wide rating scheme, ensuring standardised key performance indicators —such as energy use, renewables, waste heat reuse, and water input—are monitored. These measures aim to promote efficiency, decarbonise the grid, and create a consistent framework for monitoring and improving environmental performance of data centres. The European Commission has established a centralised database to gather this information. Data centre operators in Ireland will report their information to this European database on data centres to comply with their data centre energy and sustainability performance reporting obligations.