Paudge Connolly (Cavan-Monaghan, Independent)

When I last spoke on this Bill I spoke about heat loads. It is imperative that heat loads of buildings are reduced to the minimum possible as a very significant amount of final energy consumption is used for space heating and domestic hot water.

A number of years ago, most grant-aided houses were in the region of 1,200 sq. ft. Now, one can drive through the countryside and see that most houses are in the region of 3,000 sq. ft. While the 1,200 sq. ft. house had to cater for perhaps six, seven, eight or nine people, the big houses of 3,000 sq. ft. have perhaps an average occupancy of four people. This creates a major drain on energy, on the need for heating. It should be part of the planning that houses of this magnitude be zone heated.

When people get planning permission, they should be obliged to use natural resources such as solar panels or geothermal heating. We should now consider such conditions. The recent grant package in this area is very welcome but we should consider compulsory use of natural energy. Perhaps, too, when people sell their houses, there might be some imaginative scheme involving a reduction in VAT, for example, if solar panels were being installed. This would lead to a great reduction in demand for energy and would make matters a little simpler.

Pursuing a low carbon agenda for renewal and modernising of buildings, sourcing increasing proportions of our heating requirements from renewable heat options, offers the potential to replace substantial amounts of fossil fuels and electricity currently used for heating purposes. We must look at how we can reduce our dependency on fossil fuels.

In recent years and for the foreseeable future, wind power dominates the space created for renewables, but we need to look ahead to secure the vision of how we expect and ultimately would prefer renewable energy sourced electricity to develop. Wind and wave power are our big natural assets and one must look at harnessing them. I know some people do not like the appearance of wind turbines but we must consider such options. Wind power is an option, it is free and everlasting. As an island nation we have ample supply in that regard.

Solar panels are now available which are not entirely dependent on sun. Daylight is enough to drive such panels. Technology is developing in this area and we should encourage it at every opportunity, such as when someone seeks planning permission to build a new house or a group of new houses. We talk of different types of housing but when it comes to the energy needs of housing, county councils should lead by example and look at the use of geothermal heat and solar panel options. There should be an onus on private builders to consider such energy options. If house numbers continue to increase in the coming years, our problems will increase and we must address them.

Another major opportunity arises when people are moving house. Some incentive might be considered at that time. I hope that the sustainable energy grants scheme, which is imaginative, will continue and that much use will be made of it.

With regard to competitiveness, this aspect places a high priority on the cost of electricity to consumers and the relative burden of increases in electricity prices compared to other costs. National pay talks are under way and I understand that the energy regulator is looking at the option of reviewing, which usually means increasing, ESB charges on a two-monthly basis. If one gives the regulator that power to examine prices on such a time basis — when "examine" means "increase"— where does that leave our national pay talks if we are to tie ourselves into a three-year deal? Do people go back to their employers because their ESB bills have risen, seeking another pay increase? It will be very serious if this pattern is allowed to develop, whereby organisations can regularly appear before the regulator, seeking price increases.

Market-based mechanisms provide the most economically efficient means of achieving renewable energy policy objectives. Such mechanisms are those that enhance private sector interest through some form of economic incentive, as opposed to command and control instruments. The way forward is to get the private sector involved in this area, to encourage it to link into the systems and become financially viable. Market-based mechanisms can be categorised in terms of how they address the market, providing an incentive based on output.

Securing the island of Ireland's primary energy requirements almost exclusively from fossil fuels is becoming increasingly unsustainable. Finding new and sustainable sources of energy, learning how to integrate them into our lives and reducing our overall energy consumption are the most important challenges we face. Success in reducing our fossil fuel dependence and overall energy demand will lead to changes in the way we work and lead our lives. I have no doubt that many houses are heated for parts of the day when they are vacant. This is serious usage of energy, the benefits of which nobody enjoys. We all have a role to play in this context, particularly the business community, which must seize the challenges and opportunities presented. Sustainability in business is the only way forward, where everyone's interests can be met, once the long-term strategy is focused on protecting the environment and on responsible corporate citizenship.

I hope some of my thoughts will be taken on board by the Minister, particularly with regard to the installation of solar panels on all new houses.

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