Report: Industry spend on energy increases

A Sustainable Energy Ireland (SEI) report has found that industrial expenditure on energy has increased by over 50% since 1990.

The new report, Energy in Industry 2007, gives the most up-to-date picture of energy use, emissions and efficiency trends in Irish industry.

The report produced by SEI’s Energy Policy Statistical Support Unit (EPSSU), analyses the impact of energy on the cost base of Irish industrial enterprises.

The report finds that industrial expenditure on energy rose by 51% (3% per annum) over the period 1990 to 2004 and by 6% (2% per annum) between 2001 and 2004.

The industrial sector accounts for 22% of energy use and CO2 emissions in Ireland.

Key among the findings in the report is the proportion of direct costs accounted for by energy in industrial enterprises in Ireland.

The report highlights that 98% of industrial Gross Value Added (GVA) in industry (the contribution made by industry to Ireland’s GDP) in 2004 was generated by industrial enterprises whose energy spend was 6% or less of their direct costs.

David Taylor, Chief Executive, SEI, said; “Although for the majority of enterprises energy costs represent at most 6% of their total direct costs, companies cannot become complacent about energy management issues.

"Regardless of the share of a company’s costs that energy represents, there are direct economic and wider environmental benefits to increasing energy efficiency in business which cannot be ignored. Reduced energy costs lead to direct gains in competitiveness and ultimately profitability."