Alternative Energy Projects

Dáil Éireann Debate, Wednesday - 19 October 2011

Wednesday, 19 October 2011

Questions (7)

Catherine Murphy

Question:

7 Deputy Catherine Murphy asked the Minister for Communications; Energy and Natural Resources having regard to the projected continued decline in international crude oil production and the over-dependence on imported oil here, his plans to adopt the oil depletion protocol (details supplied) as passed by the Portuguese parliament in April 2011 as a clear statement of his intention to wean off over-reliance on imported oil and to facilitate a rapid transition to renewable energy sources and energy efficiency measures; and if he will make a statement on the matter. [29912/11]

Oral answers (5 contributions)

Deputy Pat Rabbitte

Ireland remains critically dependent on imported fossil fuels, particularly oil and natural gas. This dependency underlines the immediate and long-term imperatives of enhancing energy security, reducing price volatility and ensuring energy sustainability. National energy policy objectives are in line with overall EU policy objectives and are informed by the critical work of the International Energy Agency on all aspects of energy supply.

The Government is fully committed to delivering national energy efficiency and renewable energy objectives that are aimed at moving the economy away from reliance on imported carbon-intensive fossil fuels. The adoption of an oil depletion protocol is not required as a further statement of intent on this commitment, which is underpinned by the programme for Government.

The electrification of transport offers considerable potential for Ireland, not just in terms of energy efficiency but because of the ability to use cheaper grid-sourced electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable energy generation by 2020.

The bio-fuels obligation scheme incentivises and enables the sustainable growth of an Irish bio-fuels market affording opportunities for indigenous bio-fuel producers and allowing for the displacement of traditional oil products in the transport sector. During the first obligation period — the last six months of 2010 — the bio-fuels obligation scheme was responsible for bringing a total volume of 98.5 million litres of bio-fuels on to the Irish market, which is equivalent to more than 4.25% of the transport fuel market in the State.

The Better Energy scheme provides Exchequer-supported incentives for energy efficiency and renewable energy upgrades, brings 25 energy suppliers on board as partners to offer upgrade services directly to consumers and supports energy-efficiency upgrades in low-income private housing. Delivery on these commitments will progressively reduce our dependence on imported fossil fuels.

Deputy Catherine Murphy

The Minister's point, that we are critically dependent on imported fuel, is key. Would the Minister call the target of generating 40% of our energy from renewable resources by 2020 ambitious given our dependence on fossil fuels, oil in particular? It may well not be. Are there initiatives that the Minister believes could be invested in that would provide jobs and assist us in exceeding the target that are not being considered because of the financial limitations? If so, are there other areas being worked on that could allow us to exceed our target of 40%? I do not regard the target as ambitious given that we are probably now at the point of peak oil.

Deputy Pat Rabbitte

As Deputy Murphy will know, the experts differ on the definition of peak oil and when it will be reached. The central point remains, namely, that the extent to which the State relies on the importation of fossil fuels is critical. That is indisputable and I accept it, but there is an ambitious programme under way to develop our capacity in renewable energy.

The Deputy's asked whether there are initiatives in addition to those making a contribution to energy efficiency that would create jobs but which are constrained by the current economic environment. The honest answer is that there are. There is no doubt but that the area of retrofitting in the residential sector, for example, offers great potential for energy saving, given the standard of housing. Retrofitting has a significant spin-off in terms of employment. The additional €30 million we invested in this area this year through the jobs initiative means there are now almost 6,000 people employed at retrofitting. The answer to Deputy Murphy's question is that, if I were able to invest thrice as much, it would have a commensurate result in terms of energy savings and job creation. We are constrained by the financial circumstances.

Deputy Catherine Murphy

Is there a tipping point? With regard to Deputy Ó Cuív's question, it was stated one could not forecast four years ahead. One could certainly forecast that, in ten years, we will run into very serious difficulties in providing energy to the industrial sector, for example, by virtue of the fact that we are not proceeding quickly enough. There is probably a tipping point beyond which investment will not yield the desired result. The Minister referred to the result of investing three times as much as is being invested at present. What is the consequence of creating the jobs at this stage? What is the return on the investment of €30 million? If it were trebled, would it cover its own cost over time?

Deputy Pat Rabbitte

Yes. I am currently fighting as if for my life to keep the retrofit programme alive until we move on to the next phase. We have done considerable planning and preparation to divine a new model for retrofitting nationally. Public and commercial buildings constitute a valuable area in terms of potential energy savings and job creation. The idea is to create a new model that will involve a partnership between the energy supply companies and the banking sector. Homeowners will be enabled to get the work done on their homes largely using the savings they make on their energy bills. It is a win-win situation. Homeowners will have more comfortable homes and the work will be paid for with the savings made. The supply companies and banking sector would be part of the delivery process.