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Energy Resources.

Dáil Éireann Debate, Thursday - 5 May 2005

Thursday, 5 May 2005

Ceisteanna (130, 131, 132, 133, 134)

Fergus O'Dowd

Ceist:

79 Mr. O’Dowd asked the Minister for Communications, Marine and Natural Resources his views on the assertion by Greenpeace International contained in the Report Offshore Wind — Implementing a New Power House for Europe, that offshore wind energy could supply 10% of Europe’s energy by 2020; and if he will make a statement on the matter. [11053/05]

Amharc ar fhreagra

Freagraí scríofa

The study, referred to by the Deputy concludes that offshore wind energy could supply 10% of Europe's electricity requirement by 2010. I am not in a position to comment specifically on this assertion. A similar type study of the offshore wind potential of the island of Ireland, Assessment of Offshore Wind Energy Resources, was commissioned jointly by my Department and the Department of Enterprise, Trade and Investment in Northern Ireland and published in the year 2000. This latter report concludes that the practical offshore resource of the island of Ireland is capable of producing between 14% and 32% of current electricity demand on the island depending on the underlying assumptions applied.

However, offshore wind energy projects operate from a significantly higher cost base than the onshore equivalent. In Ireland we are fortunate to have ample proposals to develop onshore wind powered electricity generating projects to match the current technical limits the electricity network can accommodate while maintaining a stable electricity system. Notwithstanding the competitive advantage of onshore sites my Department has offered support to two offshore wind powered projects not exceeding 25 MW each to evaluate the potential of the technology.

I will continue to monitor developments in offshore wind powered technology internationally and in the proposed demonstrations projects in Ireland. If there are significant breakthroughs in the economies of offshore production or new developments to resolve limits imposed on wind powered stations in order to maintain system stability the current programme which places emphasis on the onshore option will be reviewed.

Dinny McGinley

Ceist:

80 Mr. McGinley asked the Minister for Communications, Marine and Natural Resources the full extent of energy production here through the use of fossil fuels, alternatives; and the direction he advises for the future; and if he will make a statement on the matter. [14498/05]

Amharc ar fhreagra

Gay Mitchell

Ceist:

101 Mr. G. Mitchell asked the Minister for Communications, Marine and Natural Resources the extent to which he expects electricity to be generated in the future under each heading, through conventional or alternative means; and if he will make a statement on the matter. [14503/05]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

151 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the full extent of energy production here through the use of fossil fuels, alternatives; and the direction he advises for the future; and if he will make a statement on the matter. [14729/05]

Amharc ar fhreagra

Bernard J. Durkan

Ceist:

156 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which he expects electricity to be generated in the future under each heading through conventional or alternative means; and if he will make a statement on the matter. [14734/05]

Amharc ar fhreagra

I propose to take Questions Nos. 80, 101, 151 and 156 together.

The most recent figures available to me regarding energy production, that is, electricity generation, relate to 2003 and were contained in my reply to Question No. 127 of Tuesday 8 February 2005 and is set out as follows:

%

Coal

26.51

Peat

10.36

Oil

11.88

Gas

47.08

Hydro

1.02

Wind

0.78

Landfill Gas

0.33

Bio Gas

0.04

Imports

2.00

Source: Sustainable Energy Ireland

It is not possible at present to predict what the precise proportions for each fuel type will be in the future. This will be influenced by factors such as the growth in electricity demand year on year, the fuels used for new electricity generating stations, the penetration of renewable energy, investment decisions by new entrants into electricity generation and the development of the electricity market as a whole in an all-island context.

However, the Government continues to be committed to the maintenance of a balanced fuels policy in the interest of security of supply and has made important steps to ensure that the balance is maintained for the future. Fuel mix is an important component in security of supply. Ireland has relatively little by way of indigenous fossil fuel resources and is dependent on imports for about 80% of fuel for electricity generation. The coming on stream of the Corrib gas field will change this dynamic but without future gas discoveries the change is not likely to be significant in the long-term.

The Irish electricity market is small in comparison to other EU member states, bigger only than Luxembourg, and does not have access to substantial hydro or nuclear power to balance against fossil fuel imports. The distance from fuel supply sources brings higher transportation costs and the lack of widespread interconnection limits access to other competitive markets. These features emphasise the importance of fuel mix in our energy policy and the choices we make in terms of the development of the energy market.

In the area of fossil fuels, the decision to invest in upgrading Moneypoint generating station with cleaner technology will ensure that coal remains in the fuel mix for the foreseeable future. The construction of two new peat-fired generating stations — Lough Ree and West Offaly Power — in addition to Edenderry Power ensures that approximately 370 MW of peat generation remains in the fuel mix as an indigenous resource. This will result in a cleaner and more efficient use of peat.

Natural Gas has been the fuel of choice for new private generation and our growing dependence on it will need to be carefully monitored going forward. As western economies grow more dependent on imported piped gas, other gas options such as liquefied natural gas, LNG, storage will need to be considered as a means of diversifying our access to sources of gas. There does not appear to be any market appetite for building new oil-fired stations on both economic and environmental grounds.

The approach to electricity generated from renewable sources, of which wind is the dominant technology, is to increase consumption from these sources to a minimum of 13.2% by 2010 in line with EU requirements. In order to ensure that this target is met, a renewable energy development group was established in May last year. I have already announced that future support for renewable energy will be on the basis of a fixed price as opposed to the rounds of competitive tendering in the past. I expect that wind generation will remain the dominant technology in the short term in delivering this target.

The final report of the group, which will be published after the new support mechanism is finalised, will form the basis for future policy decisions on the increased penetration of renewable energy technologies in the electricity market. While further development of renewable energy is desirable it is necessary to achieve a balance with the interests of national competitiveness and the ultimate burden of cost to the final consumer.

Biofuels are an alternative renewable fuel source for the transport sector and Sustainable Energy Ireland is funding a number of biomass projects and studies through its renewable energy research, development and demonstration programme. In conjunction with a pilot scheme for excise tax relief for biofuels, it is anticipated that these measures will lead to market penetration of biofuels of 0.13% within two years. Further measures to increase market penetration over a longer timeframe are currently being considered but no firm targets have been set as yet.

The biofuels directive sets indicative targets for market penetration of 2% by end 2005 and 5.75% by end 2010. The targets in the directive are indicative and not mandatory and most member states, including Ireland, would not be in a position to meet the 2% target by end 2005. Ireland is starting from a very low current production base, and the 2% target therefore represents a considerable challenge.

The decision by Government to approve the development of an east-west electricity interconnector with Wales is also a factor which will shape our fuel mix. The Commission for Energy Regulation is pursuing this project which, in all likelihood, will result in a 500 MW interconnector between ourselves and the UK. This will give us access to electricity from the UK and also improve our capacity to increase the level of renewable energy on our own system.

Question No. 81 answered with QuestionNo. 57.
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