Ireland's Plumbing & Heating Magazine Issue 109 Sept-Oct

OFTEC IRELAND NEWS

Update:

PLUMBING & HEATING MAGAZINE PROVIDES AN INSIGHT INTO OFTEC IRELAND AND THE PROMOTION OF THE LIQUID FUEL INDUSTRY IN IRELAND…

AS NORTHERN IRELAND PREPARES TO MOVE TO ‘NET ZERO’ BY 2050 Irish Energy Policy

David Blevings, OFTEC Ireland Manager.

AT A LOCAL LEVEL, CIVIL SERVANTS IN THE DEPARTMENT OF ECONOMY (ENERGY

DIVISION) HAVE A HUGE CHALLENGE ON THEIR HANDS: “H ow can carbon emissions from the heating sector be reduced and what plan of action will work for all consumers in Northern Ireland?”. Can NI afford to follow in GB’s footsteps and opt for an electrification strategy, that favours heat pumps with the associated retrofit costs? Or, will the immediate c.88% carbon reduction offered by biofuels such as HVO be a more attractive prospect at a time when the rising cost of living impacts homes across Northern Ireland? With the publication of a recent study, it is the opinion of the liquid fuel sector that the choice is becoming more obvious. Findings from the European Heat Pump Association (EHPA) suggest that the UK’s slow heat pump efforts will take 600 years to meet the 2050 net zero target. Many have attributed the high cost of retrofitting and heat pump installation as prohibitive, despite the UK’s Boiler Upgrade Scheme In the Republic of Ireland, the Government is again pushing an electrification first strategy. However, there is a soaring demand for building contractors, skilled

workers and materials from homeowners extending, renovating, and updating their properties thanks to a mixture of pent-up demand post pandemic and a decision to stay put as property prices increase. As a result, there is a significant delay to deep retrofits under the Government’s home energy upgrade scheme. The ROI scheme offers homeowners close to half the cost (45-51%) of a deep retrofit to improve a dwelling’s energy efficiency to a B2 rating – using a one-stop-shop service. The cost of retrofitting a three- bedroom semidetached home— which requires all measures from wall insulation to the installation of an electric heat pump — would have been between €37,000 and €58,000 last year. Now the estimated cost is between €40,000 and €63,000. The SEAI offers grants covering up to

€25,000 of the costs of a deep retrofit to a B2 energy rating, with an additional €2,000 available to those who install a heat pump. * Even with the funding, that leaves a substantial amount to be paid by the homeowner and with the increase in electricity costs and interest rates, the savings on offer would not cover the interest repayments. As reported by the Irish Times, more than five months since the scheme was announced, no deep retrofits have been completed by the one-stop shops. SEAI say approximately 1,000 deep retrofits will be completed by them by the end of the year, but with the massive scale of this issue and the number of homes that need thermally upgraded, this is a very, very slow ‘burn’. Furthermore, a study by the Economic

“We must prioritise a technology neutral approach to decarbonising residential heating.”

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