Mr. Joe O'Carroll:

I thank the Vice Chairman and members of the committee for the invitation to address them again. We are delighted to have this opportunity to present our views on the NMP and in particular the energy aspects of that plan. I will read the opening statement and my colleague, Mr. Bill Sadlier, a senior investment manager at NTR plc, will take any questions members of the committee may have.

At this stage of their work, members do not need reminding about the urgency of taking meaningful action to avoid the full impacts of climate change or the fact that Ireland is well behind its targets. Our over-arching observation of the NMP is that

similar to the renewable energy supply scheme, RESS, consultation document, it lacks a sufficient level of urgency or ambition. We appreciate the broad nature of the plan and the difficulty with co-ordinating the inputs from a wide range of stakeholders, so we not here to criticise the Department but to offer assistance from the significant weight and resources our membership base holds.

Unfortunately, the narrative around renewable energy continues to suggest that the transition from fossil fuels to renewable sources of energy will involve a net cost increase to the consumer. We previously presented analysis conducted by Baringa that outlined how we could achieve a greater proportion of renewable electricity combined with the right flexible technologies without increasing electricity costs. To achieve this, it is important to have the correct blend of renewable technologies, including onshore and offshore wind, solar photo voltaic, PV, and bioenergy. In the areas of heat and transportation, increased electrification is certain but there will also have to be developments in biogas, hydrogen and district heating.

The scale of the task at hand is easily under-estimated, therefore it is essential that all the resources available to the State, including the semi-State companies, are properly co-ordinated and targeted to achieve the best outcome in terms of greenhouse gas emissions reduction.

Having reviewed the transcript from this committee’s meeting of 24 April, it is appalling, but not surprising, that we, as a State, are now resorting to buying compliance with our 2020 targets through the use of statistical transfers despite Ireland having far better renewable energy resources than the majority of member states. It is not that long ago that 2020 seemed some distance into the future and perhaps that explains the lack of urgency in the past. Our real fear and the fear of our membership is that 2050 is the new 2020 and that the lack of urgency will be allowed to prevail. This simply cannot be allowed to happen.

The overall framework of activity involving the NMP also includes the national development plan, NDP, and more recently the preparation of a national energy and climate plan, NECP. RECAP is firmly of the belief that the NECP is the most important document that we should now collectively focus on. It is due to be drafted by the end of this year and in some respects is our final chance to get the level of ambition and urgency right, as it will guide our activities out to 2030 and beyond.

We calculate that we need to treble our rate of deployment of renewable energy if we are to optimise the energy transition. Around the globe we are increasingly seeing renewable energy projects being delivered with little or no subsidy but this is happening only in jurisdictions where there is a clear and ambitious vision for renewable energy that is articulated publicly and State and industry work together to remove barriers and lower the costs associated with project development. This is the model that we must follow.

Therefore, we wish to offer, on behalf of RECAP, to work with the Department, which is the main co-ordinating body for climate action, to prepare and implement an ambitious vision with a programme of activities that will allow the quickest and least-cost transition to a 100% renewable energy future which we know to be technically feasible. In doing so, we will stimulate employment and economic activity in rural Ireland while protecting and enhancing the natural environment.

We recognise the resource constraints within the Department so RECAP is willing to provide the secretariat for this working group which would undertake to provide regular reports to this committee. The scope of the group would be agreed with the Department and its purpose would be to provide a more efficient channel through which the vast knowledge or RECAP members can be made available to there Department in its efforts to accelerate climate action and to ensure that the NECP seizes on the great opportunity that we are now presented with.

Progress on renewable energy cannot continue to be stifled either by the erroneous notion that more renewable equals greater costs or by targets imposed on the State but by the opportunity for Ireland to have lower energy costs with a lower carbon impact and for renewable energy to become a key Irish export in the near future. I thank the committee.