Mr. Ken Spratt:

I am joined by Mr. Carroll, the head of our renewable energy division, Mr. Stjohn O’Connor, head of our energy efficiency division, and Ms Mairéad McCabe, head of our energy planning and co-ordination division, with special responsibility for the European Presidency.
Our Department is fully committed to working closely with our colleagues in the Department of the Environment, Community and Local Government on implementing Government policy on energy and climate, including the development of a sectoral road map for energy. In adopting a cross-departmental approach and aligning our respective road maps, the determination shared across the board is for a robust framework that allows us to adopt appropriate measures within realistic, but ambitious, timelines. We note that the explanatory note to head 4 states the national and sectoral low-carbon road maps are aimed at achieving transition to a low-carbon, climate-resilient and environmentally sustainable economy in a cost-effective way and as soon as possible, and not later than 2050. From an energy policy perspective, our Department is mindful that sustainability and cost-effectiveness must be accompanied by paying due attention to energy security. Adopting a national and integrated approach in close discussion with other Departments will facilitate the development of workable policy that is effective in terms of sustainability and energy security.

It is important to recall the various 20s from the 20-20-20 EU plan. While we are focusing today on the commitment to reduce greenhouse gas emissions by 20%, the European Council and the directive are committed to increasing by 20% the energy efficiency in the Union and to reaching a target of 20% renewables in total energy consumption in the Union. My Department is leading Ireland's delivery of these two other targets. While we are facing many difficult challenges, we are making very steady progress and are on track to reach the goals.

Reaching the energy efficiency goal and the renewable energy goal will make a significant contribution to the greenhouse gas emissions goal. Energy policy in Ireland and most developed countries is founded on the three pillars of security of supply, competitiveness and sustainability. More recently, as we consider updating our energy policy paper, we have been mindful of the opportunity that energy policy presents in terms of growth and jobs. After the Presidency, we will turn our attention to the policy paper. Members will notice a significant focus on the jobs and growth agenda, which has been uppermost in the Minister's mind and a major focus of the Government.

It is important to understand the unique characteristics of our energy mix. We are heavily dependent on imports of oil and gas from neighbouring markets. Against that backdrop, our renewable energy capacity has continued to expand, with increasing use of wind power feeding into the grid. Despite the difficult economic situation, reform and modernisation of the energy market has been steady, with implementation of an all-island electricity market, entry of new players into the competitive retail electricity and gas markets, and substantial investment in infrastructure. Progressive liberalisation of the gas and electricity markets has been a positive move.

I have already mentioned our proactive energy efficiency policy. We wish to embrace the benefits of new energy technologies, particularly demand-side management tools on a smart grid tailored to suit our local circumstances. Our efforts are aimed at making progress towards 2020 goals and anticipate even further greater ambition after that year. Meeting ambitious objectives and balancing competing values will require considerable analysis and sound modelling at both national and European levels.

As we face the end of an era based on fossil fuel and transition towards another based on establishing new energy systems, based on renewable energy and incorporating new technologies, we must employ sound data and evidence to develop accurate modelling scenarios that will enable us to make sound predictions on a more scientific basis across the range of sustainability, security and competitiveness.

Head 5 of the Bill emphasises the need for due consideration to be given to the economic impacts of the national and sectoral road maps. I am thankful that good work has been done on developing sustainability-focused models, but much more needs to be done to develop good quality predictors and models based on energy security and competitiveness. We anticipate working closely with colleagues in other relevant Departments to ensure the full impacts of options for the sectoral road maps are clear.

I will touch briefly on a number of recent developments in order to give the members some important background context to the Irish energy scene. The in-depth country review of Ireland, conducted by the International Energy Agency in 2011 and reported on in July 2012, contained many positive comments on the direction being taken in the Irish energy market. In its key recommendations, the agency urged actions to support the drive towards a low-carbon economy, including the development and deployment of new carbon technologies, in which Ireland has an advantage; ensuring that participation in regional energy markets brings benefits to our customers; and emphasising the balancing of local community concerns with the benefits of critical energy infrastructure. It also recommended in its report that we outline a plan for emissions-reduction targets and that we update our position on developing low-carbon strategies and plans, which is why we are here today. It recommended that we clarify the position on carbon tax and explore synergies between the energy and agricultural sectors so as to contribute to lower greenhouse gas emissions. In addition, it identified a number of actions on continuing to strengthen our energy efficiency strategies and plans. There is good alignment between the Bill and the recommendations of the International Energy Agency.

Central to any future decarbonisation strategy will be the maximisation of energy efficiency opportunities, a point highlighted by the agency in its annual report entitled World Energy Outlook 2013.

Unlocking the energy efficiency potential on an economically viable basis will remain a key focus of Irish energy policy. Yesterday, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, launched the energy efficiency framework exemplar projects in DCU. They will test new processes for procuring, contracting and financing energy, and carbon-saving projects.

The national renewable energy action plan, NREAP, sets out the Government's strategic approach to deliver on Ireland's target to achieve 16% of energy from renewable sources by 2020. We aim to achieve 40% electricity consumption from renewable sources by 2020. On the transport front, we are seeking to transform our oil dependency. A two-pronged strategy has been put in place that combines significant increases in the use of bio-fuels with facilitating greater use of electric vehicles in Ireland. The Government has also set a target of 12% renewable heat by 2020. A series of related and complementary support programmes has already been put in place to address the delivery of this target, aimed at supporting both demand and supply sides.

Let me refer to the European Commission's Energy Roadmap 2050 and its Green Paper on a 2030 framework for climate and energy policies. These important documents refer to the close linkages between climate and energy policy development and acknowledge the benefits of retaining a European approach to that policy after 2020. Needless to say, the Department will ensure Irish interests are well represented in the development of a combined approach on target identification and delivery. The work that we undertake on our sectoral roadmap will feed into our work on the 2030 framework.

I shall mention briefly some of the work that we undertook during our Presidency of the Council of the European Union. The Minister chaired three Councils of energy Ministers, one being an informal meeting held at Dublin Castle. Good progress was made on various legislative and other files, including excellent discussions on the 2030 framework and the need for renewed focus on facilitating energy efficiency.

Our Department is acutely aware of its responsibility as Ireland, Europe and the world transitions to a low-carbon economy and society. We are seized of the challenges that such a transition presents across a number of fronts. We must play our part in minimising the rise in global temperatures as much as possible. We must achieve our long-term carbon ambitions without damaging our national competitiveness or undermining our energy security. We are setting about our interrelated goals, within the legislative framework set by the Oireachtas, in collaboration with colleagues in other Irish Departments and agencies. Our international colleagues, in Europe and beyond, are also focused on similar challenges and eager to engage, co-operate and succeed. We look forward to addressing and overcoming the obstacles to a low-carbon future.

We are happy to answer any questions members may have concerning the Bill and the surrounding policy approach. While we are not in a position to make an immediate response, we would be happy to provide follow-up information to the Members over the coming days.