JOHN HARDY

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• JOHN HARDY
• SUSTAINABLE ENERGY ASSOCIATION
• RENEWABLE ENERGY IN NORTHERN IRELAND
  OPPORTUNITIES FOR GROWTH

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SUSTAINABLE ENERGY ASSOCIATIONWHO WE ARE AND
WHAT WE DO.

• JOHN HARDY, PROJECT MANAGER, SEA
• NI launch in Stormont, February 2008
• RoI launch in Dublin, October 2008, with Minister
  Eamonn Ryan.
• Approximately 70 members, including large
  manufacturers and small installers.

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• The Sustainable Energy Association exists to
  represent the renewable energy industry so that
  we can provide environmentally friendly,
  efficient and cost effective sources of energy
  for everyone

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AIMS

• Lobbying Public Affairs for Members
• To represent the small-scale renewable
  energy industry across Ireland and provide a
  channel of communication with Government, policy
  makers and the public.
• Products/technologies Quality assurance /
  standards
  Ensuring the highest quality products and
  customer service to give quality assurance within
  the industry and the wider business market.
• Installers/Service Certification / industry
  training
• Demanding and ensuring the highest level
  of skills and competence for those involved in
  installing and servicing renewable energy systems
  so as to achieve the greatest benefit for
  customers and maintain the industry as
  well-developed and reputable.
• Design/Installation
• Highlighting the importance of renewables
  at the both the demand and supply side of energy
  use from the design of a building through to the
  installation of the system and throughout the
  duration of the building, through an integrated
  approach of all sectors of the construction and
  property industries.
• Industry promotion Marketing and PR for Members
• To ensure that our association all our
  members and their products/services, are
  accurately and positively represented in the
  public arena.

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THE VISION 3 YEARS FROM NOW

• High Quality, High Reputation Industry, equipped
  to meet growing market
• Independent Quality Control system funded by
  industry
• Industry and Government (SEI/AR) working to
  maximise consumer and environmental benefit
• Industry working with Regulators to unravel
  regulatory obstacles i.e. gas network, electric
  grid, building regulations, planning guidelines,
  carbon taxation
• Industry working closely with a growing Energy
  Assessment Sector-to resolve approach to
  high-carbon energy in-efficient infrastructure
  (eg copy proposed system suggested by Eamonn Ryan
  for RoI in NI)

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SUSTAINABLE ENERGY ASSOCIATIONThe voice of the
alternative energy sector

• The industry has no single body representing us
  in our diverse approach to micro-generation of
  heat and electricity.
• Growing renewables sector potential for job
  creation, skills development, helping Govt. meet
  its targets and lowering costs for homeowners and
  businesses.
• Many sectors within the industry- i.e.
  agricultural, manufacturing, service- diverse
  range of interests need a focus.
• S.E.A. established to provide this voice.

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INDUSTRY IN NORTHERN IRELAND
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Renewable Energy - An imperative forNI

• 95-96 of NIs primary energy requirement is
  met by fossil fuel and imports.
• Fossil fuel environmental and sustainable
• issues.
• Imports price volatility and security of
  supply.

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NI Renewable Energy Targets

• By 2012, 12of NI electricity consumption to be
  met from indigenous renewable sources.
• Of that 12, 15 to be from non-wind resource.

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ENERGY CONSUMPTION IN NORTHERN IRELAND BY SECTOR
2006(source Action Renewables)
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RENEWABLE ENERGY GENERATION IN NORTHERN
IRELAND(source Action Renewables)

• Presently connected 180.1 MW
• Mostly wind
• About 4 of our electricity use
• Obligation (6.3 by 2012) 250.0 MW
• DETI Target (12 by 2012) 480.0 MW
• Wind Farms In Planning 965.15MW

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JOB CREATION
Job Creation Report 2006 Potential to create 5600
FTE jobs Labour Market Research Report
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Job Creation Report

• To establish the tangible benefits for the
  economy as a whole
• Good potential for job creation, coming both from
  the development of the renewable energy industry
  and the co-existing manufacturing capacity
• 6000 short term jobs and 400 long term jobs could
  be sustained, just exclusively by developing
  renewable energy
• Dominated by wind energy, on-shore and off-shore,
  providing about 80 of potential

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RENEWABLE ENERGY SUPPLY COMPANIES

• ESCO Report (Renewable Energy Supply Companies)
• Potential target market for renewable energy
  based ESCOs of 120m electricity and 179m
  fossil fuel
• If ESCOs were to attain 10 share then this
  would displace 170 thousand tonnes of CO2
  emissions, and replace 58 thousand tonnes of oil
  equivalent

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NORTHERN IRELAND

• Practical potential - Relative significance
• Ground Source Heat Pumps 2300 GWh/yr
• Solar Thermal 1170 GWh/yr
• Wood pellets 200 GWh/yr
• Wood chip 191 GWh/yr
• Mushroom and poultry litter 186 GWh/yr
• Recycled timber 104 GWh/yr
• Pig/Cattle slurry 64 Gwh/yr
• Short Rotational Coppice 58 GWh/yr
• Sewage sludge 36 GWh/yr
• (EfW plant 200 GWh/yr)
• Total 4309 (4509) GWh/yr

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DRIVERS AND POLICIES

• UK
• Energy White Paper
• Microgeneration Strategy
• Low Carbon Building Programme
• Reduction in the standard rate of VAT to 5
• The availability of ROCs
• N Ireland
• Northern Ireland Sustainable Development Strategy
• DETI Strategic Energy Framework
• Environment and Renewable Energy Fund (EREF)
• All Island Grid study

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RENEWABLES THE HAIN PLAN

• RECOGNISED THE NEED TO DEVELOP THE RENEWABLES
  INDUSTRY .
• INTRODUCED THE ENVIRONMENT AND RENEWABLE ENERGY
  FUND.
• RECONNECT GRANT SCHEME WOULD STIMLUATE
  DEVELOPMENT AND GROWTH.
• COINCIDE WITH REIA IN PROVIDING SKILLS AND
  STANDARDS
• MANDATROY MICROGENERATION IN BUILDING REGS TO
  MAINTAIN INDUSTRY.

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THE REALITY

• RECONNECT GRANT VERY SUCCESSFUL. APPROX 4000
  INSTALLATIONS OF RENEWABLE SYSTEMS, BUDGET
  EXTENDED TO 10MILLION. REVIEW 08/09.
• REIA CONTINUES TO TRAIN INSTALLERS.
• MANDATORY MICROGENERATION NOT INTRODUCED AS IN
  RoI GROWTH OF INDUSTY THREATENDED?

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WHAT DO WE HAVE?

• RENEWABLE OBLIGATION CERTIFICATES (ROCS).
• LOW CARBON BUILDING PROGRAMME
• DEPARTMENT OF ENTERPRISE, TRADE AND INVESTMENT
  STRATEGIC ENERGY FRAMEWORK
• DEPARTMENT OF AGRICULTURE
• DEPARTMENT OF SOCIAL DEVELOPMENT

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NI Renewables Obligation

• Main support mechanism for renewable
• electricity.
• Introduced in NI in April 2005 places
  obligation
• on electricity suppliers to demonstrate
  amount
• of electricity from renewables sources.
• NI obligation of 6.3 by 2012.
• 3 ROs i.e. NIRO, RO in England and Wales
• and ROS in Scotland.
• Operate in tandem on a UK wide basis to enable
• viable market mechanism.

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Drivers for the Reform of the RO

• Need to accelerate new technologies.
• Increased emphasis on Climate Change.
• EU agreement to 20 renewable energy targets by
  2020.

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Proposed areas of Reform

• Banding of the Obligation.
• Setting RO levels for the future.
• Measures to avoid ROC price collapse.
• Co-firing considerations.
• Energy Crops definition.
• Deeming the Biomass factor of waste.
• Making RO neutral to solid recovered waste.

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Current RO proposals forMicrogeneration

• 2 ROCs/MWh for microgeneration stations
• (50KW or less ) , regardless of technology.
• Microgenerators excluded from grandfathering
• provisions.
• Commitment to this level of support following
  the first scheduled banding review , planned for
  2013.

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EU 2020 Targets

• Draft Renewable Energy Directive published in
• January 2008 - 20 renewables contribution to
  energy consumption by 202010 biofuels
• contribution to transport fuel.
• Proposed UK contribution is 15 - significant
• challenge.
• Energy i.e. electricity, heat and transport.

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LOW CARBON BUILDING PROGRAMME

• Launched 1 April 2006, replaces DTI Clear Skies
  and Solar PV grant Programmes
• Open to householders, public, not for profit and
  community orgs across the UK
• 30million over 4 years
• Company and product accreditation scheme cost,
  bureaucracy, etc.

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Cross Departmental BioenergyGroup

• Established in May 2007 and led by DETI.
• Membership DARD, Invest NI, DOE, DFP and
• DRD.
• Remit to develop a more integrated approach
  to the sustainable development of Bioenergy in NI.

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Objectives of the Bioenergy Study

• Assess financial and economic viability of the
• sector, markets, supply chains, RD.
• Assess potential contribution to EU renewable
• energy targets.
• Identify best practice and make
• recommendations for cross departmental
• strategy.

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DEPARTMENT OF SOCIAL DEVELOPMENT

• Trial of wood pellet boiler heating systems in
  Clogh and Ballynahinch
• Trial of CHP in North Antrim utilising the
  natural gas network.
• Mandatory 3 star rating on Code for Sustainable
  Homes for all new social housing.
• Solar panel installations being monitored to
  provide cost-benefit analysis.

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POTENTIAL FOR THE FUTURE?

• FEED-IN TARRIFS
• HEAT ROCS
• GREEN RATES REBATES
• GRANTS???

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CONCLUSIONS

• Northern Ireland has seen a massive growth in
  renewables over the past few years job creation,
  innovation, skills development.
• Though a number of threats to the industry, still
  great potential, especially with wind.
• The policies support renewables, but not always
  implemented properly.
• Demand for renewables will only increase.