But how can Government ensure that the energy required to power the public transport fleets is sourced from renewable electricity sources?
For transport modes powered by electricity, the current answer is renewable electricity corporate power purchase agreements or “Corporate PPAs”. Corporate PPAs are contracts between a corporate (or public sector) off-taker who agrees to purchase renewable electricity from a renewable energy developer who typically generates the electricity from a specific renewable electricity project. Corporate PPAs have been in existence for almost 20 years but have grown rapidly in popularity over the last 10 years as corporates seek to reduce (or neutralise) the environmental impact of their operations. In essence, Corporate PPAs link the renewable electricity produced usually at a wind or solar farm with that consumed by an end user, providing renewable energy certificates (known as “Guarantees of Origin” in Ireland and Europe) for the corporate (or public sector entity) for sustainability reporting purposes. EY has been advising on the development of renewable energy strategies and the procurement of Corporate PPAs for over 10 years now and fully appreciates how effective these can be in helping corporates/ entities in meaningfully and additionally meet their sustainability responsibilities.
Green hydrogen generation in Ireland, given the processes required to produce it which rely on using electricity to convert water to hydrogen, typically consist of the bundling of onsite renewable electricity generation with the hydrogen production process. The bundling of future renewable electricity and hydrogen generation projects is common, and plans are afoot in Ireland; however, it may not always be practical or efficient. For example, it could be more cost effective to generate renewable electricity offsite at a wind farm or solar farm and then transfer this (through the grid) to the hydrogen generating facility in the town or port. Currently in Ireland, this is challenging from regulatory perspective; however, this may be an option going forward.
Moving forward
Trains: Whilst projects such as DART+ will certainly grow the share of electricity in the total energy demand of the train fleet, unless the wider train network can be transitioned to a more carbon-neutral footing, it will continue to negatively impact on our environment. Electrifying train lines is expensive, especially in a country with a relatively sparse population. The use of hydrogen-powered trains (electric engine that runs on a hydrogen fuel-cell, also sometimes energy captured from braking) may present the most feasible way to de-carbonise railway lines (especially those of the secondary network that are not electrified) and needs to be considered. Such trains are already in development and based on the make-up of Ireland’s rail network, may be the answer to greening the train fleet.
Light-rail (LUAS) and Metro: Tackling the carbon-emissions of the electrified LUAS light-rail (and the potential MetroLink) projects while not without its complications, will certainly be more straightforward than rail and bus. The main challenge for Government is in ensuring that the operators of these projects source the electricity from verifiable renewable sources. As we have discussed, Corporate PPAs are effective at doing this.
Buses: If Ireland is to successfully green its public transport fleet, the emissions generated by buses will need be tackled head on. Clearly the first steps which the NTA have taken (fleet electrification project, hydrogen buses, etc.) are very encouraging, but continued government support for fleet electrification is required if CAP targets are to be achieved.
As it stands, Ireland’s transport fleets are largely carbon emitting. If Ireland is to achieve its ambitious climate action targets, rapid action is required to implement electrification and facilitate the use of green hydrogen to power the fleets (both public and private). Doing this alone would not be enough as Ireland needs to ensure that the energy that power these fleets going further is sourced from as low carbon-generating sources as possible. Corporate PPAs are an effective and efficient structure to do this and will be key to assisting in the delivery of a green public transport fleet.
A final thought - greening the public transport fleet in of itself will not fully address Transport’s GHG emissions (which account for almost 20% of Ireland’s total according to CAP); however, it will - combined with other measures such as increased sustainable mobility journeys (500,000 p.a. targeted by 2030) - make a considerable dent (c. 1.8 Mt³ reduction p.a. – figure based on CAP) in the overall target reduction by 2030 (6-7 Mt p.a. – figure based on CAP). Government has called out the importance of the public sector leading by example and if it can green the public transport fleet it will clearly be doing this.