Oireachtas Joint and Select Committees

Wednesday, 10 November 2021

Committee on Budgetary Oversight

Inflation: Discussion

Dr. Ella Kavanagh:

That is certainly true globally. We have seen that in terms of the increasing demand for gas as it is considered to be the bridging fuel between the heavy fossil fuels and more renewable energy. China’s and India's move towards gas has certainly increased the demand for gas on global markets and has put pressure upwards on the price of gas. That is on the one hand. On the other, what it suggests is that, if prices are increasing like that and if that increases dependency on particular sources of gas, it is all the more important that one begins to move towards removing the dependence on these energy fuels. The argument one could make is that it is really important to start reorienting away from those and to focus in on more renewable energies, and that is a matter of some importance and some urgency if the energy market continues to behave as it is currently.

That is a particular view. I can understand why one would like to temper that move but it is almost giving us a reason or an incentive, to put it that way. The prices are rising as there is increasing demand for gas and other fossil fuels, and that is acting as an incentive to move away from those sources. Unfortunately, what we are seeing is a move back towards fossil fuels and the reopening of stations that use fossil fuels. It suggests to me a greater impetus towards renewables and moving in that direction, and moving away from dependence on fossil fuels and carbon fuels, given these very volatile movements.