Paudge Connolly (Cavan-Monaghan, Independent)

I welcome the opportunity to speak on this Bill, one of the effects of which will be to take the initial steps towards opening up an all-Ireland energy market. Energy is a major issue which impacts on every aspect our daily lives. Every time we use the word "energy" we think about how fuel is becoming more expensive on a daily basis. People in the transport sector can outline how much it costs to bring our goods to us. Renewable energy has received closer attention but action is needed in terms of increasing the percentage of energy taken from renewable sources.

The ways in which we consume energy have changed in recent times. In the past, we depended mainly on coal and solid fuels but most homes are now oil or electricity dependent. Society must adapt to these changing consumption habits.

We are all becoming experts on wars in the Middle East and their effects on our lives in terms of jobs and the price of energy. These issues have gone to the top of people's agenda.

We should encourage greater use of renewable resources. If grants existed for housing insulation, the country would get a return on its investment one way or another. Many people now live in 3,000 sq. ft. houses, yet one home may be much more energy efficient than its neighbour. We should investigate these matters with a view to ensuring that houses can be more easily heated and less reliant on electricity.

A single electricity market in Ireland will not merely provide opportunities for cheaper power through economies of scale but will also provide a better basis for dealing with the crucial issues of ensuring future security and diversity of supply. The Bill also clearly charts a course towards the logical concept of a genuine all-Ireland energy market and acknowledges the fact that two small energy markets on the island do not make sound economic sense. In European terms, we are unfortunate in not having a neighbouring country to which we can link for supplies. Energy stability throughout the island of Ireland will be a major factor in attracting inward investment. Many of our industries are leaving and the cost of operating in Ireland is a major disincentive for companies locating here. We have enough difficulties in retaining the jobs we already have here and companies have a big battle on their hands with this issue.

As the island, North and South, is generally regarded as a single economic entity, it follows that a single electricity market is a logical next step. Ireland has the seventh most expensive energy prices among the 25 EU member states, largely due to a lack of competition among the two State companies, ESB and Bord Gáis. This expense makes it difficult for companies to create jobs here. It is important that Northern Ireland and the Republic of Ireland look to the longer term of 2020 and beyond when considering future energy policies. North-South collaboration in an all-Ireland energy market as well as in electricity is the most effective way of going about this. An all-Ireland electricity market will have as its aim the provision of competitive, sustainable and reliable markets in electricity at the minimum cost because businesses need cost effective markets. This single market should also be capable of meeting the increasing electricity and energy requirements of the island in ways that are compatible with national and EU sustainable energy policies and targets.

Policies should be developed to encourage and facilitate greater contributions from renewables, combined heat and power and energy efficiency. Renewable energy comes from energy sources which are continuously replenished by nature. The main sources of renewable energy are wind, solar energy, hydro power, wave and tidal energy. We are not making sufficient use of these resources and we should be harnessing them because they are free. Our power should come from these sources in future.

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