The Government is in discussions with the State's electricity providers on how best to fund energy saving measures for up to 1.2 million private homes at an estimated cost of €18 billion, it emerged today.
The intention of the move is threefold - to provide a foil against rising energy costs, to provide a major boost to the green economy and to significantly reduce greenhouse gas emissions. Retrofitting existing houses would also be in line with EU regulations on measures member states must take to increase energy efficiency.
Minister for Energy Eamon Ryan, who insisted "Ireland's thriving sustainable energy sector is providing a strong platform for economic growth", has already issued a high level consultation paper to the chief executives of energy supply companies including the ESB, on how the scheme should be operated.
Mr Ryan has previously indicated he envisages an "obligation" on energy companies to assist with the capital cost of retrofitting homes with insulation and other energy saving measures such as smarter metering which manages electricity consumption.
It is understood the energy companies would be allowed to recoup their costs from the householder, who could expect savings in to 20 per cent in ESB bills, and would in turn use the savings to repay the capital cost of the measures over time.
However, it is understood the power companies - members of the National Electricity Association of Ireland - have told Mr Ryan that the cost, at about €15,000 per home, could run to €18 billion and is beyond what they should be asked to carry up front.
Last week the Sustainable Energy Authority of Ireland (SEAI) held a seminar for members of the National Electricity Association at which Canadian expert Brian Hamilton demonstrated a number of such schemes around the world in which homes have been successfully upgraded. The most successful of these tended to be where the cost of retrofitting is commercially financed and tied into the property, as opposed to the householder, and repaid over a long period of time, he said.
The energy companies are now expecting the Minister to engage in further consultation before he brings a memorandum to Government on a suitable scheme, expected before the end of the year.
Speaking as he opened the SEAI's Energy Show in the RDS today, Mr Ryan said the Irish people were already responding to the green energy agenda "as they have warmer homes, lower fuel bills and new sources of employment."
He added he was "confident that Ireland's major advances in sustainable energy will only accelerate as we increase the scale and application of our policy initiatives".
He said already thousands of new jobs had come on-stream. "Billions are being invested by State, semi-state and private industry alike. We have begun to forge a new economy. We are on track to meet our ambitious renewable energy targets. "
The Energy Show is expected to attract over 5,000 trade visitors over its two days. It aims to showcase energy efficient technologies, and in the region of €40 million worth of business is expected to be generated by the 200 exhibitors at the event.
