I propose to take Questions Nos. 12 and 26 together.
The Government’s overriding energy policy objective is to ensure competitive, secure and sustainable energy for the economy and for society. Renewable energy has a critical role to play with regard to each element of this objective. Prior to the publication of the Commission's 2030 proposals, I supported, along with seven other European Energy Ministers, a renewable energy target for 2030. Given the long lead in time for energy developments, clear investment signals are critical for the renewable energy sector if it is to be in a position to make a contribution to achieving 2030 goals. Not only is the renewable energy sector of key importance in the context of 2030, it also provides a real, and sustainable, economic opportunity for Ireland, both in terms of providing a secure, indigenous source of energy, and potentially as a clean export.
My Department will, over the coming months, work closely with European partners to establish the scale of the contribution Ireland should make to the acheivement of this proposed EU target. Considerable analysis of the Commission’s proposals will be required to ensure that the framework allows for action that is cost effective and does not place a disproportionate burden on EU energy consumers.
The Government is fully committed to delivery of the existing target of 16% of energy coming from renewable sources by 2020. In 2012, 19.6% of electricity demand was met by renewable generation, with 5.2% of heat and 2.4% of transport energy requirements coming from renewable sources. Overall, at the end of 2012, 7.1% of our energy was provided from renewable sources. It is critical that that every effort is maintained if we are to reach the 16% target for 2020, as it will provide the basis for reaching our 2030 objectives.
Further increasing the share of renewable energy in our generation portfolio will reduce our dependency on expensive imported fossil fuels. Given the variability of some renewable energy sources, however, fossil fuels will remain an important part of the fuel mix as we transition to a low carbon economy. Having said that, subsidies are already in place to incentivise the market to deliver the necessary generation capacity to meet our renewable electricity target; market mechanisms for the reduction of fossil fuel generation are, therefore, already in place. That this action is delivering displacement of fossil fuel generation is evidenced by analysis undertaken by the Sustainable Energy Authority of Ireland, which shows renewable electricity has displaced over €1 billion worth of fossil fuel imports - mainly gas - since 2006.
