With the recent hikes in the price of electricity and gas, as well as the ongoing concern around climate change, energy security and being more energy-efficient has become a top-of-mind concern for people and businesses around the country. How can Ireland’s race to net zero by 2050 help businesses become more energy-efficient?
Energy security has two primary components that are key to industry as well as the individual consumer: uninterrupted availability of energy sources, and affordability price, says Todd Winge, senior vice-president and general manager at Eli Lilly. “Energy security can be enhanced through many different means such as deployment of renewable energy, increased energy efficiency and diversification of energy sources and storage.
“Here in Ireland, our continued economic growth makes the expeditious switch to reliable renewable energy sources even more important. While there are some short-term concerns across industry and the public, early positive steps are being taken to address these risks.”
To tackle the climate crisis, the world must eventually end our reliance on fossil fuels, Winge says. “Today, even within the EU, renewables are managed on a national basis with only a small proportion of each country’s power imported or shared transnationally. The availability challenges of renewables will impact security in the medium term: the sun doesn’t shine at night and wind may not blow when we have a winter high-pressure event.
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“This means that until new storage technologies such as higher efficiency electric and thermal batteries or hydrogen systems are improved and scaled up, we will need to look at better sharing of resources across states by the creation of more super-grid infrastructure to get power where renewables are still generating to areas that are in deficit. Undoubtedly, connecting to such infrastructure will be challenging for an island like Ireland but it will be one step towards improving our security and, in time, may lead to Ireland becoming a powerhouse for Europe with its abundant offshore wind energy resources.”
Why businesses need to make change
The Climate Action and Low Carbon Development (Amendment) Act 2021 commits Ireland to reaching a legally binding target of net-zero emissions no later than 2050, and a cut of 51 per cent by 2030 (compared to 2018 levels), says Dave Dorney, vice-president and general manager, industrial refrigeration field division, Johnson Controls, Inc. “Under the 2021 Act, Ireland’s national climate objective requires the State to pursue and achieve the transition to a climate-resilient, biodiversity-rich, environmentally sustainable and climate-neutral economy.”
And how ...
Sustainable energy production is now at the core of most progressive businesses, says Winge. “While for many this has been driven by social and environmental objectives that are aligned with their customers, employees and shareholding stakeholders, now for others, it is a matter of survival due to escalating energy costs which may be with us for many years. Ireland is fortunate as many of its leading companies fall into the former category and for many years now have been looking at ways to reduce their carbon footprints by reducing the energy intensity of their operations, leveraging new technologies and supporting renewable energy sources.”
Forging a more sustainable future cannot be achieved by one company alone, says Conor Neylan, head of public affairs, communications and sustainability at the Coca-Cola Company Ireland. “As a company, we know we have a responsibility to work in partnership with consumers, industry, local authorities and policymakers to create a true World Without Waste.
“With the growing impacts of climate change, there is an urgency for businesses to play their part in building a sustainable world.”
Supporting businesses to make the change
Businesses are supported by the EU Recovery funding, and the four Project Ireland 2040 funds – comprising the Climate Action Fund (CAF); Disruptive Technologies Innovation Fund; the Urban Regeneration and Development Fund; and the Rural Regeneration and Development Fund – will have a collective budget amounting to an estimated €4 billion to 2027, notes Dorney.
The CAF will continue to fund initiatives that contribute to the achievement of Ireland’s climate and energy targets in a cost-effective manner. It offers the potential for innovative interventions in these sectors that, in the absence of support from the fund, would not otherwise be developed. By requiring a minimum contribution from each project, the fund’s commitment will leverage a total investment of over €300 million.