Oireachtas Joint and Select Committees
Wednesday, 19 October 2022
Joint Oireachtas Committee on European Union Affairs
EU-level Policy Response to Current Energy Security Issues: Discussion
Mr. Cillian O'Donoghue:
I can take the solar and raw materials angle. Yes, there are big challenges. Fifteen years ago, we had a solar industry in Europe, particularly in Germany, but now we do not. By and large, the jobs and the production have gone to China. In terms of materials, silicone is a very important source for solar. In general, most of that production is taking place elsewhere. We are coming with a new raw materials strategy and this is called a critical raw materials strategy. As we move from a fossil fuel intensive economy to a raw materials intensive economy, our dependence on certain critical raw materials, such as silicone, lithium, cobalt for electric vehicles, etc., is going to shift. We need to be able to react to that. I would also flag that much of the energy intensive industries that make these raw materials are suffering a lot under this crisis. We need to find solutions so that they stay in Europe. I do not think it is wise to become overly dependent on China for imports of these critical raw materials. In the last six months, we have seen what an over-dependence on one supplier can do. We thought we had an inter-dependent relationship with Russia. It turns out that was not the case. We have seen what happens when we become too reliant on one supplier. As we shift from a fossil fuel to a raw materials intensive economy, we cannot let the same mistake happen.
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