Energy in the Residential Sector

There was a significant improvement in energy intensity of Irish dwellings post 2007. However, compared to the EU average Irish dwellings perform poorly in terms of energy intensity. This is particularly true of carbon dioxide emissions. The report explores the reasons behind these trends and Ireland's poor performance.

Many of the economic factors that contributed to the reduction in household energy intensity witnessed post 2007 eased or reversed after 2014. Disposable incomes increased and oil prices reduced. In response to the easing of these pressures, residential energy use returned to growth between 2014 and 2016.

Up until the mid 2000s Ireland had one of the highest energy intensities per dwelling of any EU country. From 2007 onwards there was a significant reduction in the energy intensity of Irish dwellings. Despite this improvement by 2015 we still remained 7% above the EU average.

The decrease in residential energy use between 2007 and 2014 was due to a combination of:

• Improved thermal efficiency due to retrofitting and building regulations
• Reduced household incomes and expenditure, due to the economic downturn
• High energy prices

In 2015, the average Irish dwelling emitted more energy related carbon dioxide than any other EU country. We emitted 58% more than the average EU dwelling. This is due to greater use of high-carbon fuels including oil, coal and peat.

The period 2011 to 2016 saw record high energy prices for electricity, gas and oil:

• Oil prices peaked in 2012 at 10.4 €cent/kWh – 147% above the 2000-2005 average
• Gas peaked in 2014 at 7.45 €cent/kWh – 135% above the 2000-2005 average
• Electricity price peaked in 2014 at 23.35 €cent/kWh – 101% above the 2000-2005 average

The percentage of individuals reporting that they are unable to afford to keep their home adequately warm increased from 4% in 2006 to 10% in 2013. Although the situation improved somewhat in 2014-15, fuel-poverty remained well above the 2006 to 2008 levels.

The floor area of the average Irish dwelling is amongst the largest in the EU. This is one reason for the higher average energy consumption of Irish homes. The larger average floor area of Irish dwellings is partly because of Ireland's low share of apartments.

In 2015 7% of Irish people lived in apartments, the lowest proportion of any EU member state. The next nearest member state was the UK at 15%, while 66% of the population in Spain lives in apartments. The average across the whole EU28 was 33%.

The most important reason for the high carbon dioxide emissions of Irish dwellings is the the mix of fuels we use.

Coal and peat use

15% of energy used in Irish households is from direct use of coal and peat. These are the two most carbon intensive fuels, and Ireland uses more of them per dwelling than any other EU member state, apart from Poland.

Oil use

36% of energy used in Irish households is from oil, the highest proportion of any EU member state except for Cyprus. Oil is less carbon intensive than coal but more carbon intensive than gas.

Electricity

Ireland’s electricity is also one of the most carbon intensive in the EU.