1. Energy Efficiency Obligation Scheme : Funding Energy Efficiency
Paul Kenny, B.E. C. Eng.
Chief Executive
Tipperary Energy Agency

2. Discussion Points Why an obligation scheme International Experience
Main Principles
Sample savings
Opportunities

3. Why an Obligation Scheme
Required under EU Energy Efficiency directive Art 7.
…Suppliers must demonstrate savings of 1.5% of sales by 2020.
Market based approach to generate energy savings
All (large) suppliers active in funding savings.
Creates competition for cheapest energy savings
Sustainable Energy Authority of Ireland verifies savings

4. Main Principles
Energy suppliers have targets of residential and Non residential savings.
Primary energy savings
Takes account of energy transmission, power-plant / distribution losses etc
Electricity savings credited more than thermal savings. (approx 2.5 times).
Savings need to be verified (before and after).
Energy suppliers or consultants provide this service.
Baseline energy use, action and expected results, actual results.
Suppliers providing a range of services:
Cash for projects
Energy audits
Engineering supports
Verification of savings

5. Value of Savings Suppliers costs per primary energy credit: 1 - 3.5c.
Includes all services.
Need to have a sufficient quantity to make it worthwhile
Energy services companies can use effectively
E.g. Lighting company brings a discount with products.
Equates to:
2.5c-8.75c for electricity savings
1-3.5c for thermal/ transport savings.
Tipperary Energy Agency collates annually (with grants)
Tipperary County Council PV: c. €10,000 from EEOS
Municipal Water Pump replacements >€100,000
Tipperary domestic retrofit projects c. €250,000

6. Sample 3 year payback lighting (electrical) savings project
15c/kWh electricity cost;
€10,000 lighting bill
€12,000 investment
€ 4,000 savings. 40% or
26,600 kWh electrical savings or 66,500kWh Primary savings (2.5)
At 3c/ Energy credit: €2,000 payment
16% capital support from energy supplier.
May also provide advice and verification.

7. Opportunities
Any verifiable energy saving opportunity is valid (Rep. of Ireland)
Need to have scale to be cost effective.
Insulation / lighting / heating of poultry/ pig houses the big targets.
General lighting
Variable speed drives on vacuum systems.
Precooling of milk etc.
Reduced diesel through different tillage systems
Switching from conventional to organic (less energy use in spraying).
PV installations
Dairy systems utilising waste heat for hot water generation.
Collective behavioural change savings.
Open to entrepreneurial approaches to energy savings and energy savings services.

8. How to Use EEOS
Energy Services / Suppliers often use EEOS to discount.
Help to deliver projects:
Energy audits (in some cases)
Energy project support
Third party (Tipp Energy or Enprova etc)
Call electricity supplier directly.
Use an SEAI program (e.g. Better Energy Communities).

9. Paul Kenny CEO T: 052 7443090 F: 052 7443012 E: Paul@tippenergy.ie
Non profit, public good social enterprise
Energy management, renewable energy and energy efficiency.
Public good consultancy, Market development actions, private sector consultancy
Energy audits, feasibility, implementation, design, project management, signoff.
Cutting edge expertise
16 expert staff
Paul Kenny
CEO T: F: E: W: