Dáil debates

Wednesday, 4 December 2013

Other Questions

Electricity Generation

10:20 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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8. To ask the Minister for Communications, Energy and Natural Resources the degree to which adequate non-fossil-fuel-based electricity generation capacity is currently available; the future requirements in this regard in the short, medium and long term; the consequences in the event of a failure to meet targets in this regard in respect of economic development and energy security; and if he will make a statement on the matter. [51673/13]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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This relates to a question that has already been dealt with. It relates to the degree to which Ireland is obliged to provide alternative non-fossil-fuel-based electricity generation facilities over a period and the extent to which it is possible to reach these requirements in the event of the necessary economic growth taking place, while at the same time being able to evaluate on a cost-benefit basis the proposals in their entirety.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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As Deputy Durkan is aware, responsibility for national and international climate change policy is a matter for the Minister for the Environment, Community and Local Government. However, the overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. Ireland is currently heavily reliant on imported fossil fuels to meet its energy needs.

While it is acknowledged that fossil fuels will remain part of the energy mix for some time to come, progress is being made towards increasing the share of renewables in our overall energy requirements. The 2009 EU renewable energy directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources. Provisional figures for 2012 indicate that 19.6% of electricity demand was met from such sources.

Wind energy has been the largest driver of growth in renewable electricity to date, contributing most towards the achievement of the 2020 target. In 2012, 15.3% of Ireland's electricity demand was met by wind enegy generation. At the end of the third quarter this year, the total amount of renewable energy generated connected to the grid was approximately 2,100 MW. It is estimated that a total of between 3,500 MW and 4,000 MW of onshore renewable energy generation capacity will be required to allow Ireland to meet its 40% renewable electricity target. Currently, projects involving approximately 3,000 MW of renewable energy have taken up connection offers under the Gate 3 grid connection programme.

A failure to meet our overall EU renewable energy targets would result in compliance costs and emissions permit purchases. The Sustainable Energy Authority of Ireland has estimated that these could amount to around €100 million to €150 million per annum for each percentage point of the shortfall in renewable energy targets and a further €250 million in emissions permit purchases.

The development of the clean, indigenous, renewable energy resources which Ireland is fortunate to have in abundance holds the prospect of reducing our reliance on expensive fossil fuel imports, thereby improving our energy security and opening up opportunities for the engineering, ICT and communications sectors, with consequent potential for job creation. In response to Deputy Durkan's question about the economic impact, the potential is already recognised by IDA Ireland and Enterprise Ireland in their clean technologies strategies. As we look towards a new EU energy and climate change framework for 2030, we need to expand the portfolio of renewable energy generation options.

10:30 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his comprehensive reply. In the examination of the various options such as wave energy, biomass and so on, is it intended to examine them in the context of their economic viability? Is it intended to examine their potential to come on stream at an earlier stage than anticipated? In the event that there is electricity generation using onshore wind energy, is it intended to take careful cognisance of the views of people who are concerned about health, visual and other impacts on the environment?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Work on wave and tidal energy is essentially still at research stage. The expert advice is to the effect that we look to have a propitious resource, but it is still not commercial. To answer the Deputy's question, these energy options will not be integrated early into the system, but, nonetheless, we are maintaining our investment and partnerships in continuing to test the research in that area.

Wind energy is an indigenous renewable resource and I hope the Government is extremely sensitive to the concerns of people as expressed in various forums and so on. Community acceptance is absolutely critical if we are to exploit what is an indigenous, valuable, renewable resource that has the capacity to create jobs, bring revenue streams into the country, provide rates and other revenue for local authorities and so on. It is very difficult to do it without community acceptance. It is essential that the Government and other institutions of State which are charged with implementation of plans in this area and which have responsibility for refurbishing the grid also demonstrate sensitivity and seek to gain community acceptance for necessary decisions.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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What is the extent to which the cost of generating electricity for industrial and domestic consumers is likely to be affected by the ability of this jurisdiction to control its own energy sources or to rely on imported supplies? What is the extent to which these options can be demonstrated as being economically beneficial to these consumers?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Unfortunately, as price takers, we have little influence over the situation where we are importing 100% of our oil needs and 96% of our gas needs. Earlier Deputy Broughan tried to place responsibility for rising gas prices on me. I have responsibilities for many things, but I am not responsible for the global price of gas which reached an all-time high earlier this year. Deputy Durkan is right: if we are dependent on importing fossil fuels to generate electricity and we are in the position of price taker, it is a very difficult situation for us. The more alternatives we can create, the better, especially if they are created from an indigenous resource.