1.

0Lecture 3 Environment and Energy Policy

1.1 Global Context

Sources include wind, solar, hydro, tidal, aero/hydro/geothermal, and biomass/biofuel

(organic material, e.g. trees, plants, and agricultural and urban waste)
Investment in subsidizing technologies as opposed to research
Worldwide global renewable capacity in 2013 was 1,560 GW
Up over 8% from previous year
Hydro: 1,000 GW (4%) and others 560 GW (17%)
In 2013 EU Renewables accounted for largest proportion (72%) of new electric
generation capacity for sixth year running.

1.2 Wind v Solar

Wind
o Nuisance and environmental issue with wind
o Wind technology is running up against the laws of physics
Solar
o Thermal (10%) and photovoltaic (90%)
o Getting cheaper,
o 2% of global electricity supply by 2020

1.3 Storage is a key challenge

Renewables not necessarily available at demand times (e.g solar a night)

Generation capacity is held in reserve to meet peak demand
Efficient storage address these problems

1.4 EU Context

Renewables lower EUs dependence on imported fossil fuels

Renewables improve environmental impact, sustainability, security and economy (costs
and jobs)
Directive 2009/28/EC on the promotion of the use of energy from renewable sources
Repealed Directives 2001/77/EC (renewables) and 2003/30/EC (bio fuel)

1.5 Renewable Energy Directive, Article 1: Subject Matter and Scope

This Directive establishes a common framework for the promotion of energy from
renewable sources. It sets mandatory national targets for the overall share of energy from
renewable sources in gross final consumption of energy and for the share of energy from
renewable sources in transport.
It lays down rules relating to statistical transfers between Member States, joint projects
between Member States and with third countries, guarantees of origin, administrative
procedures, information and training, and access to the electricity grid for energy from
renewable sources. It establishes sustainability criteria for biofuels and bio liquids.

1.6 Renewable Energy Directive, Article 2: Key Definitions

energy from renewable sources means energy from renewable non-fossil sources,
namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy,
hydropower, biomass, landfill gas, sewage treatment plant gas and biogases
biomass means the biodegradable fraction of products, waste and residues from
biological origin from agriculture (including vegetal and animal substances), forestry and
related industries including fisheries and aquaculture, as well as the biodegradable
fraction of industrial and municipal waste;
bio liquids means liquid fuel for energy purposes other than for transport, including
electricity and heating and cooling, produced from biomass
biofuels means liquid or gaseous fuel for transport produced from biomass
guarantee of origin means an electronic document which has the sole function of
providing proof to a final customer that a given share or quantity of energy was produced
from renewable sources

1.7 Renewable Energy Directive: key objectives & targets

Establishes an overall policy for the production and promotion of energy from renewable
sources in the EU.
It requires the EU to fulfill at least 20% of its total energy needs with renewables by 2020
to be achieved through the attainment of individual national targets.
All EU countries must also ensure that at least 10% of their transport fuels come from
renewable sources by 2020.
Specifies national renewable energy targets for each country, taking into account its
starting point and overall potential for renewables. These targets range from a low of 10%
in Malta to a high of 49% in Sweden (16% for Ireland).
EU countries set out how they plan to meet these targets and the general course of their
renewable energy policy in national renewable energy action plans.
Progress towards national targets is measured every two years when EU countries publish
national renewable energy progress reports.

1.8 Renewable Energy Directive: Article 3

Mandatory national overall targets and measures for the use of energy from renewable
sources
Each Member State shall ensure that the share of energy from renewable sources,
calculated in accordance with Articles 5 to 11 [includes co-operation methods], in gross
final consumption of energy in 2020 is at least its national overall target for the share of
energy from renewable sources in that year, as set out in the third column of the table in
part A of Annex I [Ireland 16%]. Such mandatory national overall targets are consistent
with a target of at least a 20 % share of energy from renewable sources in the
Communitys gross final consumption of energy in 2020. In order to achieve the targets
laid down in this Article more easily, each Member State shall promote and encourage
energy efficiency and energy saving.

1.9 Renewable Energy Directive: National Renewable Energy Action

Plans

All EU countries have adopted national renewable energy action plans

These show what actions they intend to take to meet their renewables targets.
These plans include sectorial targets for electricity, heating and cooling, and transport;
planned policy measures; the different mix of renewables technologies they expect to
employ; and the planned use of cooperation mechanisms (e.g. Ireland exporting
renewable wind energy to UK post 2020).

1.10 Renewable Energy Directive: Article 4

National renewable energy action plans

Each Member State shall adopt a national renewable energy action plan. The national
renewable energy action plans shall set out Member States national targets for the share
of energy from renewable sources consumed in transport, electricity and heating and
cooling in 2020, taking into account the effects of other policy measures relating to
energy efficiency on final consumption of energy, and adequate measures to be taken to
achieve those national overall targets, including cooperation between local, regional and
national authorities, planned statistical transfers or joint projects, national policies to
develop existing biomass resources and mobilize new biomass resources for different
uses, and the measures to be taken to fulfil the requirements of Articles 13 to 19.

1.11 National Renewable Energy Action Plan

Article 4 of Directive 2009/28/EC on renewable energy requires each Member State to

adopt a national renewable energy action plan (NREAP) to be submitted to the European
Commission.
The plan is to set out the Member States national targets for the share of energy from
renewable sources consumed in transport, electricity and heating and cooling in 2020,
demonstrating how the Member State will meet their overall national target established
under the Directive.
Ireland submitted its National Renewable Energy Action Plan to the European
Commission in July 2010.
Ireland submitted its first report to Commission in January 2012 and its second report in
February 2014 (see Article 22).
Ireland has binding legal obligations under EU Directive 2009/28 EC to ensure that 16%
of all energy consumed in Ireland across the electricity, heat and transport sectors is from
renewable sources by 2020.
The National Renewable Energy Action Plan sets out that the 16% overall will be
achieved by around 40% of electricity consumed being from renewable sources, 12% of
consumption in the heat sector and 10% consumption in the transport sector.

1.12 Renewable Energy Directive: Cooperation Mechanisms

From article 4: cooperation between local, regional and national authorities, planned
statistical transfers or joint projects
Differing renewable potential throughout out EU
Rivers suitable for hydroelectric power, sunshine suitable for solar.
Ireland has one of the best wind energy climates in Europe.
The Directive promotes cooperation amongst EU countries (and with countries outside
the EU) to help them meet their renewable energy targets.
For example, Ireland Exporting Renewable Electricity (see SEAI/DCENR/EirGrid/CER
Study on the Viability and Cost Benefit Analysis for Ireland of (RES-E))

1.13 Cooperation mechanisms: Article 6

Statistical transfers between Member States

In a statistical transfer, an amount of renewable energy is deducted from one country's
progress towards its target and added to another's.
This is an accounting procedure and no actual energy changes hands.
Incentives transferring nation to produce beyond its target

1.14 Cooperation mechanisms: Article 7 & 8

Joint projects between Member States

Two or more Member States may cooperate on all types of joint projects relating to the
production of electricity, heating or cooling from renewable energy sources. That
cooperation may involve private operators.
Two or more EU countries can co-fund a renewable energy project in electricity or
heating and cooling, and share the resulting renewable energy for the purpose of meeting
their targets. These projects can but do not have to involve the physical transfer of energy
from one country to another.

1.15 Cooperation mechanisms: Article 9 & 10

Joint projects between Member States and third countries

One or more Member States may cooperate with one or more third countries on all types
of joint projects regarding the production of electricity from renewable energy sources.
Such cooperation may involve private operators.
EU countries may also enter into joint projects with non-EU countries. The resultant
energy will count towards national targets if the project involves: electricity generation
and the flow of energy into EU (to ensure real effect on EU Energy consumption)

1.16 Cooperation mechanism: Article 11 (Joint support schemes)

Article 2 defines support scheme means any instrument, scheme or mechanism applied
by a Member State or a group of Member States, that promotes the use of energy from
renewable sources by reducing the cost of that energy, increasing the price at which it can
be sold, or increasing, by means of a renewable energy obligation or otherwise, the
volume of such energy purchased. This includes, but is not restricted to, investment aid,
tax exemptions or reductions, tax refunds, renewable energy obligation support schemes
including those using green certificates, and direct price support schemes including feedin
tariffs and premium payments
Two or more EU countries can co-fund a joint support scheme to spur renewable energy
production in one or both of their territories.
This form of cooperation can involve measures such as a common feed-in tariff, a
common feed-in premium, or a common quota and certificate trading regime.
Without prejudice to the obligations of Member States under Article 3, two or more
Member States may decide, on a voluntary basis, to join or partly coordinate their
national support schemes. In such cases, a certain amount of energy from renewable
sources produced in the territory of one participating Member State may count towards
the national overall target of another participating Member State if the Member States
concerned

1.17 Renewable Energy Directive: Article 13

Member States shall ensure that any national rules concerning the authorisation,
certification and licensing procedures that are applied to plants and associated
transmission and distribution network infrastructures for the production of electricity,
heating or cooling from renewable energy sources, and to the process of transformation of
biomass into biofuels or other energy products, are proportionate and necessary.
administrative procedures are streamlined and expedited at the appropriate
administrative level
rules are objective, transparent, proportionate, do not discriminate between applicants
and take fully into account the particularities of individual renewable energy
technologies
simplified and less burdensome authorisation procedures are established for smaller
projects

1.18 Renewable Energy Directive: Article 14

Information and training: Member States shall ensure that information on support
measures is made available to all relevant actors, such as consumers, builders, installers,
architects, and suppliers of heating, cooling and electricity equipment and systems and of
vehicles compatible with the use of energy from renewable sources.

1.19 Renewable Energy Directive: Article 15

Guarantees of origin of electricity, heating and cooling produced from renewable energy
sources
For the purposes of proving to final customers the share or quantity of energy from
renewable sources in an energy suppliers energy mix Member States shall ensure that
the origin of electricity produced from renewable energy sources can be guaranteed in
accordance with objective, transparent and non-discriminatory criteria.

1.20 Renewable Energy Directive: Sustainable biofuels

Biofuels and bio liquids are instrumental in helping EU countries meet their 10%
renewables target in transport.
The Renewable Energy Directive sets out biofuels sustainability criteria for all biofuels
produced or consumed in the EU to ensure that they are produced in a sustainable and
environmentally friendly manner.
Companies can show they comply with the sustainability criteria through national
systems or so-called voluntary schemes recognized by the European Commission.

1.21 Renewable Energy Directive: Article 16

Access to and operation of the grids

Member States shall take the appropriate steps to develop transmission and distribution
grid infrastructure, intelligent networks, storage facilities and the electricity system, in
order to allow the secure operation of the electricity system as it accommodates the
further development of electricity production from renewable energy sources, including
interconnection between Member States and between Member States and third countries.
Member States shall also take appropriate steps to accelerate authorization procedures for
grid infrastructure and to coordinate approval of grid infrastructure with administrative
and planning procedures

1.22 Renewable Energy Directive: Article 17

Sustainability criteria for biofuels and bioliquids

Irrespective of whether the raw materials were cultivated inside or outside the territory of
the Community, energy from biofuels and bioliquids shall be taken into account only if
they fulfill certain sustainability criteria
E.G.: the greenhouse gas emission saving from the use of biofuels and bioliquids shall be
at least 35 %.
50% from 1 January 2017,
60% from 1 January 2018

1.23 Renewable Energy Directive: Article 17&18

Article 18: Verification of compliance with the sustainability criteria for biofuels and bio
liquids
Article 19: Calculation of the greenhouse gas impact of biofuels and Bio liquids

1.24 Renewable Energy Directive: Article 22

Reporting by the Member States:

Each Member State shall submit a report to the Commission on progress in the
promotion and use of energy from renewable sources by 31 December 2011, and every
two years thereafter. The sixth report, to be submitted by 31 December 2021, shall be the
last report required.

1.25 Case C-573/12 Alands Vindkraft AB v Energimyndigheten

Para. 54: In the light of all the foregoing considerations, the answer to Question 1 is that
point (k) of the second paragraph of Article 2 and Article 3(3) of Directive 2009/28 must
be interpreted as allowing a Member State to establish a support scheme, such as that at
issue in the main proceedings, which provides for the award of tradable certificates to
producers of green electricity solely in respect of green electricity produced in the
territory of that State and which places suppliers and certain electricity users under an
obligation to deliver annually to the competent authority a certain number of those
certificates, corresponding to a proportion of the total volume of electricity that they have
supplied or consumed.

1.26 Case C-195/12 Industrie du bois de Vielsalm & Cie (IBV) SA v Region
Wallonne

Para 82: Having regard to the above considerations, the answer to the second part of
Question 1 and Question 2 is that, in the present state of European Union law, the
principle of equal treatment and nondiscrimination laid down in particular in Articles 20
and 21 of the Charter does not preclude the Member States, when introducing national
support schemes for cogeneration and electricity production from renewable energy
sources, such as those referred to in Article 7 of Directive 2004/8 and Article 4 of
Directive 2001/77, from providing for an enhanced support measure such as that at issue
in the main proceedings capable of benefiting all cogeneration plants principally using
biomass with the exclusion of cogeneration plants principally using wood and/or wood
waste.

1.27 National Energy Policy Objectives

The reduction of greenhouse gas emissions to combat climate change.

Reduction of carbon fuel imports, to safeguard security of energy supply.
These objectives require further significant development of our indigenous, renewable
energy resources.

1.28 REFIT

Administered by Department of Energy

REFIT stands for 'Renewable Energy Feed in Tariff' and is the primary means through
which electricity from renewable sources is supported in Ireland.
Support renewable projects by offering prices reflecting the cost of the specific renewable
technology
REFIT 1: opened at end of 2009; small and large scale onshore wind, biomass landfill
gas, other biomass and small hydro ( 5MW.)
REFIT 2: March 2012; same but not other biomass
REFIT 3: February 2012;other biomass technologies

1.29 National Renewable Energy Action Plan

Article 4 of Directive 2009/28/EC on renewable energy requires each Member State to

adopt a national renewable energy action plan (NREAP) to be submitted to the European
Commission.
The plan is to set out the Member States national targets for the share of energy from
renewable sources consumed in transport, electricity and heating and cooling in 2020,
demonstrating how the Member State will meet their overall national target established
under the Directive.
Ireland submitted its National Renewable Energy Action Plan to the European
Commission in July 2010.
Ireland submitted its first report to Commission in January 2012 and its second report in
February 2014 (see Article 22).

1.30 Renewable Electricity Policy and Development Framework

Draft Report published on 2nd February 2016

Consultation process will close 22 April 2016
This framework will guide the development of renewable electricity projects which are
key objectives of Irish energy policy.
To provide guidance to citizens, industry, An Bord Pleanala, and other public authorities,
for use in conjunction with the Planning Guidelines on Wind Energy Development and
other more general planning guidance
Requires Strategic Environmental Assessment (SEA) and an Appropriate Assessment
(AA).

1.31 Draft Bioenergy Plan

Published in October 2014

Sets out a vision of Irelands bioenergy resources contributing to economic development
and sustainable growth, generating jobs for citizens, supported by coherent policy,
planning and regulation, and managed in an integrated manner.
Three high level goals:
o To harness the market opportunities presented by bioenergy in order to achieve
economic development, growth and jobs
o To increase awareness of the value, opportunities and societal benefits of developing
bioenergy
o To ensure that bioenergy developments do not adversely impact the environment and
its living and non-living resources

1.32 Offshore Renewable Energy Development Plan (OREDP)

Background

The potential offshore wind resource in Ireland is large scale and much greater than the
capacity of our electricity system to absorb it for all for domestic use.
Ireland has a landmass of around 90,000 square kilometres, sea area of around 10 times
that size, at 900,000 square kilometres.
Irelands position at the Atlantic edge of the EU gives an almost unparalleled offshore
energy resource.

1.33 OREDP

Identifies the opportunity for the sustainable development of Irelands abundant offshore
renewable energy resources for increasing indigenous production of renewable electricity.
Sets out key principles, policy actions and enablers for delivery of Irelands significant
potential in this area.
Provides a framework for the sustainable development of Irelands offshore renewable
energy resources.
Ireland also, developing wave and tidal energy potential

1.34 Energy White Paper

Titled: Irelands Transition to a Low Carbon Energy Future 2015-2030

Published 16/12/2015
The long term development of Irelands abundant, diverse and indigenous renewable
energy resource.
Renewable energy of key environmental importance and also provides a sustainable,
economic opportunity for Ireland, both in terms of providing a secure, indigenous, source
of energy, and as an export in the longer term.
Move to a decarbonised energy system, support for renewable energy is vital from both
an economic and environmental perspective.

1.35 Microgeneration: ESB Customer Supply

Only one supply company (ESB Customer Supply) is currently offering consumers a
microgeneration feed-in tariff support scheme
SI 201 of 2012 provides for the refund of VAT paid by farmers on qualifying equipment,
purchased from 1 January 2012, for the purposes of microgeneration of electricity for use
in a farm business.

1.36 Microgeneration: SEAI

The Sustainable Energy Authority of Irelands micro-generation pilot scheme

The principal objective to investigate and test technical, market and regulatory issues
associated with the installation, network connection and operation of small and micro
scale generation technologies.
An associated programme objective is to assess measures required for supplier and
product qualification to minimize the risk of adverse outcomes at small-scale and microgeneration installations, hence promoting the robust growth of a supply base.
Technologies: Micro Wind Turbines, Photovoltaic, Hydro.

1.37 Relief for investment in renewable energy generation

Section 62 Finance Act 1998 provided for a scheme of tax relief for corporate investments
in certain renewable energy projects. The Section came into operation as Section 486B,
TCA 1997, with effect from 18 March 1999. Since then, the scheme has been periodically
extended.
The relief applies to corporate equity investments in certain renewable energy generation
projects. The relief is given in the form of a deduction from a companys profits for its
direct investment in new ordinary shares in a qualifying renewable energy company.
To qualify for this relief, the energy project must be in the solar, wind, hydro or biomass
technology categories, and must be approved by the Minister for Communications,
Energy & Natural Resources.
The relief is capped at the lesser of 50% of all capital expenditure (excluding lands), net
of grants or 9.525 million for a single project. Investment by a company or group is
capped at 12.7 million per annum, and unless the shares are held for at least 5 years by
the corporate investor, the relief shall be withdrawn (Section 486B (6) (b) refers).

1.38 National transposing legislation

S.I. 147 of 2011 - European Communities (Renewable Energy) Regulations 2011:

Transposes elements of the Directive including the provisions relating to access to and
operation of the grid; guarantees of origin and the exemplary role of public bodies
regarding public buildings.
S.I. 158 of 2012 - SUSTAINABLE ENERGY ACT 2002 (SECTION 8(2))
(CONFERRAL OF ADDITIONAL FUNCTIONS RENEWABLE ENERGY) ORDER
2012
Conferral of additional functions on the Sustainable Energy Authority of Ireland (SEAI).
The functions being assigned to SEAI relate to requirements under the Renewable Energy
Directive 2009/28/EC concerning renewable energy related information and training;
promotion and encouragement of renewable energy use by public bodies; and promotion
of certain renewable technologies.
Energy (Biofuel Obligation and Miscellaneous Provisions) Act 2010
an act to further promote the use of biofuel in the state and for that purpose to provide for
the increased supply of biofuel in the state by means of a biofuel obligation requiring that
a specified amount of road transport fuel is biofuel;
to impose a levy on relevant disposals of biofuel
to confer additional functions on the national oil reserves agency to administer the biofuel
obligation;

1.39 Other national measures

Sustainable Energy Authority of Ireland (SEAI) have prepared information to advise

Consumers on all of the technical and performance issues related to Electric Vehicles.
Promote Green Public Procurements (15 billion annual budget)

1.40 Planning exemptions domestic

The construction, erection or placing within the curtilage of a house of a wind turbine:
Class 2(b), Part 1, Schedule 2, PDR 2001
The installation or erection of a solar panel on, or within the curtilage of a house, or any
buildings within the curtilage of a house: Class 2(c)
The installation on or within the curtilage of a house of a ground heat pump system
(horizontal and vertical) or an air source heat pump: Class 2(d)

1.41 Planning exemptions civic

The carrying out by any electricity undertaking of development consisting of the

construction or erection of a charging point for electric vehicles.: Class 29A

1.42 Planning exemptions commercial

The construction, erection or placing within the curtilage of an industrial building of a

structure for the purposes of housing a (fully enclosed) Combined Heat and Power
system.: Class 56(a)
The construction, erection, or placing within the curtilage of a business premises, or a
light industrial building, of a structure for the purposes of housing a (fully enclosed)
Combined Heat and Power system Class 56(b)
The construction, erection or placing within the curtilage of an industrial building or
light industrial building, or business premises of a wind turbine.: Class 56(c)
The installation or erection on or within the curtilage of an industrial building, or any
ancillary buildings within the curtilage of an industrial building, of solar panels (thermal
collector or photo-voltaic).: Class 56(d)
The installation or erection on a business premises or light industrial building, or any
ancillary buildings within the curtilage of such premises or buildings, of solar thermal
collector panels.: Class 56(e)
The installation or erection on a business premises or light industrial building, or any
ancillary buildings within the curtilage of such premises or building, of photovoltaic solar
panels.: Calls 56(f)
The installation on or within the curtilage of an industrial building, or any ancillary
buildings within the curtilage of an industrial building, of a ground source heat pump
system (horizontal and vertical) or air source heat pumps.: Class 56(g)
The installation on or within the curtilage of a business premises or light industrial
building, or any ancillary buildings within the curtilage of such a premises or building, of
a ground source heat pump system (horizontal and vertical) or air source heat pumps.:
Class 56(h)
The provision as part of a heating system for an industrial building or light industrial
building or business premises of a biomass boiler, including a boiler house, flues mounted
on the boiler house, and over-ground fuel storage tank or structure. Class 56(i)

1.43 Planning exemptions rural

The construction, erection or placing within an agricultural holding of a structure for the
purposes of housing a (fully enclosed) Combined Heat and Power system.: Class 18(a),
Part 3
The construction, erection or placing within an agricultural holding of a wind turbine.:
Class 18(b)
The installation or erection on an agricultural structure, or within the curtilage of an
agricultural holding, of solar panels (thermal collector or photo-voltaic).: Class 18(c)
The installation within an agricultural holding of a ground source heat pump system
(horizontal and vertical) or air source heat pumps. : Class 18(d)
The provision as part of a heating system for an agricultural building of a biomass boiler,
including a boiler house, flues mounted on the boiler house, and over-ground fuel storage
tank or structure.: Class 18(e)

1.44 Planning processes

Section 37A of the PDA 2000: Strategic Infrastructure Development

Seventh Schedule development include:
An installation for hydroelectric energy production with an output of 300 megawatts or
more, or where the new or extended superficial area of water impounded would be 30
hectares or more, or where there would be a 30 per cent change in the maximum,
minimum or mean flows in the main river channel.
An installation for the harnessing of wind power for energy production (a wind farm)
with more than 25 turbines or having a total output greater than 50 megawatts.

1.45 Other national entities: EirGrid Ltd.

The independent electricity Transmission System Operator (TSO) for the Republic of
Ireland.
The Transmission System, often referred to as The National Grid, is a meshed network
of approximately 6,500km of high voltage, 110,000 volts (110kV), 220,000 volts (220kV)
and 400,000 volts (400kV), overhead lines and underground cables and over 100
transmission stations.
The system can be compared to Irelands motorway network delivering power to over
100 bulk transfer points or nodes all over Ireland where power can be taken onwards on
lower voltage, distribution system, lines to individual customers premises.
High voltages are used to reduce or minimize energy losses which would otherwise occur
when transferring power over long distances in a lower voltage system.
The distribution system is separately managed by the Distribution System Operator
(DSO), ESB Networks and brings power directly to Irelands domestic, commercial and
industrial customers.

1.46 Other national entities: ESB Networks Ltd.

Distribution System Operator

A ring fenced subsidiary within ESB Group
The licensed operator of the electricity distribution system in the Republic of Ireland.
Responsible for building, operating, maintaining and developing the electricity
distribution network and serving all electricity customers in the Republic of Ireland.
As Meter Operator, it installs, maintains and reads all electricity meters.

1.47 Other national entities

Sustainable Energy Authority of Ireland (SEAI)

Commission for Energy Regulation (CER)