The document summarizes key findings from the IEA's 2012 review of Ireland's energy policies. It notes that Ireland's primary energy supply is 95% fossil fuel-based, with efforts to increase renewable energy like wind power. It recommends that Ireland support gas supply diversification, enhance infrastructure project approval processes, maintain funding for low-carbon technologies, and ensure benefits from regional energy market participation and sufficient regulator powers. Implementing these recommendations could improve Ireland's energy security, create jobs, boost energy efficiency and help transition to a low-carbon economy.

1. Energy Policies of IEA Countries
Ireland 2012 Review
Government Buildings, Merrion Street, Dublin
11 July 2012
Maria van der Hoeven
Executive Director
International Energy Agency
© OECD/IEA 2012

2. Review background
 IEA conducts regular reviews every 5 to 6 years
 The review took place in November 2010
 Based on the IEA’s Shared Goals and three pillars
 Energy security
 Economic growth
 Environmental sustainability
 Peer review by experts from other IEA member
countries, the European Commission (EC), and the IEA
Secretariat
© OECD/IEA 2012

3. Notable changes since the last review
 Significant reforms have continued, despite the
economic downturn
 Electricity and natural gas markets
 Renewable energy
 Energy efficiency and climate change
© OECD/IEA 2012

4. Primary Energy Supply is hydrocarbon-based
 Fossil fuels = 95%
 Oil is 48% TPES, remains
Mtoe
16
largest energy source 14
 Coal (9%) and peat (6%) 12
declining; still sizeable 10
 Gas growing, now 33% TPES
8
6
 Push for renewables 4
 Huge wind potential 2
0
 Biomass small; developing 1973 1978 1983 1988 1993 1998 2003 2008
Oil Natural gas Peat Coal Biofuels and waste Wind
 R&D in ocean energy
 Not in energy mix
 Solar and hydro limited
 No nuclear allowed © OECD/IEA 2012

5. Decarbonising electricity generation
 Renewables policy emphasis – 40% generation by 2020
 Favourable REFITs extended
35 TWh
 Wind =10%; 30% 2020 target 30
 New REFITs for 2nd gen. biomass 25
20
 Gas is the dominant fuel 15
 Now accounts for 62% of power 10
 Will grow in tandem with growth in 5
variable renewables 0
1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Oil Natural gas Peat Coal Hydro Biofuels and waste Wind
 Coal and peat are declining
 Carbon tax disincentive
 Peat subsidies phased out
© OECD/IEA 2012

6. Decarbonising with demand-side measures
 Very proactive energy efficiency policy
 National target of 20% savings in 2020 (compared to 1990)
 Public sector to be exemplary, with a target of 30% savings
 Detailed NEEAP outlines 90 measures across all sectors of the economy
 Energy R&D into low-carbon technologies
 Public funds quintupled from 2005 and 2008; maintained despite crisis
 Strong engagement with ICT companies
 World leader for smart grid development
 Encouragement of electric vehicles
 Deployment of smart meters
 Strong potential for ocean energy in the future
© OECD/IEA 2012

7. Importance of infrastructure projects
 Electricity Map of gas pipelines
 East-West interconnector to GB
 Grid25 for wind integration
 Extra North-South line needed
 Gas
 Possible Shannon LNG project
 Corrib field still not producing
 Gas storage is needed
 NIMBY problems
 Local community concerns
 Consenting process important
© OECD/IEA 2012

8. Addressing energy security concerns
 Electricity production increasingly based on renewables
 Gas to provide power when the wind generation is not available
 500 MW East-West interconnector to Great Britain in 2012
 Importance of reliable gas supplies
 93% of gas supply comes through one entry point, Moffat
 Poor geology for gas storage to meet peak demand
 Efforts to diversify gas supply – Corrib, Shannon LNG
 Future of the sole oil refinery is uncertain
 75 mb/d Whitegate refinery could close after 2016
 …but the North-West Europe product market is abundant and diversified
 And Ireland is increasing its domestic stockholding levels
© OECD/IEA 2012

9. Deepening regional integration
 Push for all-island market with Northern Ireland
 Electricity: SEM has been successfully implemented
 Gas: CAG seeking to emulate success of SEM
 Integrating with UK and EU markets
 500 MW East-West interconnector to Great Britain
 Affected by ongoing UK electricity market reform?
 Implications of EU target models for gas and electricity?
 Regulator’s oversight and empowerment is key
© OECD/IEA 2012

10. Key recommendations (1/2)
The government of Ireland should
 Support diversification and flexibility of gas supply
 Enhance the consultation, planning and consenting
process for infrastructure projects
 Maintain funding for new low-carbon technologies,
such as wind, biomass, ocean and smart grids
© OECD/IEA 2012

11. Key recommendations (2/2)
The government of Ireland should
 Ensure that participation in regional energy markets
brings benefits to Irish consumers and investors
 Ensure that regulator’s powers are sufficient
© OECD/IEA 2012

12. Implementing our recommendations
will help Ireland to
 Improve its energy security, at a time of heightened
risks
 Create new jobs in the new entrants to the electricity
and gas sectors
 Limit the need for energy use and make the economy
more energy-efficient
 Help the country become a 21st century low-carbon
economy
© OECD/IEA 2012