Pat Rabbitte (Dublin South West, Labour)
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Question 62: To ask the Minister for Communications, Energy and Natural Resources the position regarding Ireland's standing on each one of the targets on energy commitments (details supplied); the targets set for the year 2008; and if he will make a statement on the matter. [35606/07]

Eamon Ryan (Dublin South, Green Party)
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The energy policy framework and the Programme for Government have set renewable energy targets for the electricity, heat and transport sectors. In addition to contributing to fuel diversity and sustainability, these targets are critical to national, EU and Kyoto greenhouse gas emissions reduction targets.

We have set a target of 15% of electricity consumption to be generated from renewable energy sources by 2010, rising to 33% by 2020. The contribution in 2006 was 8.6%, up from 6.8% in 2005 and 5.2% in 2004. It is estimated that the 2007 contribution will be of the order of 10% with further incremental delivery in 2008. We now have over 1,000 MW of renewable generating capacity connected and over 500 MW with signed connection offers in place, which will ensure that we meet our target in 2010. I will be publishing the report of the all-island grid study jointly with my Northern colleague, Minister Dodds, early in 2008. The report will inform the investment and infrastructure decisions necessary to deliver on the 2020 target.

We have set a target of 5.75% market penetration by bio-fuels to 2010 and 10% by 2020. The introduction of the bio-fuels obligation in 2009 will require all fuel suppliers to ensure that bio-fuels represent a certain percentage of their annual fuel sales. Implementation of the obligation will require consultation and appropriate legislation. Fuel suppliers will also require time to make the necessary adjustments to meet their bio-fuels targets.

The obligation will build on the results of the 2005 and 2006 mineral oil tax relief schemes for bio-fuels, which saw a total of 18 projects being awarded excise relief between 2005 and 2010. The schemes were designed as interim measures to accelerate the level of bio-fuels in the fuel mix, in advance of the introduction of the bio-fuels obligation in 2009. They will underpin achievement of the 2% target next year.

In line with the European Union, we have set a national target of 20% increase in energy efficiency by 2020 with a more ambitious target of 33% energy savings in the public sector. We have just completed the public consultation process on the national energy efficiency action plan, which proposes over 60 actions to meet our energy efficiency targets. The action plan will be launched in early 2008.

The Government has also set a national target of 5% penetration by 2010 and 12% by 2020 for renewable energy heating. The greener homes scheme together with accelerated delivery of Sustainable Energy Ireland's renewable heat and combined heat and power programmes will directly contribute to achieving our target for the heating sector.

Liz McManus (Wicklow, Labour)
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As I am conscious of the time constraints, I will focus on the 30% reduction in the public sector. Has the Minister examined the costs involved in bringing that about? He is talking about major efficiency in a sector where many buildings are probably not even up to basic standards. For example, many prefabricated buildings are used in the education sector. Is the Government providing a fund in the Departments of Education and Science and Health and Children, for example, to bring about that transformation? How much will it cost?

I must leave to attend a funeral following the Minister's reply. I wish everyone a happy Christmas.

Eamon Ryan (Dublin South, Green Party)
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I wish the Deputy a happy Christmas and a happy new year.

With regard to energy efficiency gains in the buildings area, it is the most beneficial, according to cost benefit analyses. It provides the clearest gain, particularly in the context of heating, because demand is consistent and it can be quantified on a building by building basis and reductions achieved. Although capital costs are incurred, the State can deliver efficiencies, gains and cuts in budgets and emissions in this area.

The national efficiency action plan was published on the Internet and was subject to public consultation during October and November. We are moving into the action phase. It will require Government action across all Departments and agencies to make sure we retrofit buildings and we lead the way in the public sector. On a building by building basis, we should ascertain the payback within a set number of years. If, for example, the payback occurs within five years, that will represent a good investment by the State and that would be the economic model to use to deliver efficiency gains.

All Departments are engaged in this process. For instance, the Department of Education and Science is examining every school. All public sector bodies are building a statistical picture to establish current energy use. That exercise will lead to an examination of how to reduce energy use in buildings with high energy use. It is a demanding target but it represents a significant opportunity rather than a cost.

Martin Ferris (Kerry North, Sinn Fein)
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Question 63: To ask the Minister for Communications, Energy and Natural Resources his views on whether public funding and involvement in research into tidal and wave energy is adequate in view of the targets set for renewable energy sources. [35172/07]

Eamon Ryan (Dublin South, Green Party)
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The Government is giving major priority to investment in research technology development and innovation in ocean energy. Realising our wave and tidal energy potential is of strategic importance in support of our renewable energy targets, security of supply and carbon emission reductions. It also has significant overall enterprise development potential, in terms of innovation and economic activity. Ireland's geographical position is considered virtually unparalleled in the world with regard to wave energy. In addition, the tidal stream conditions in the Irish Sea are considered to be of considerable potential.

In the context of achieving our 2020 renewable electricity target of 33% of electricity generated from renewable sources, it is vital that we develop all the renewable resources available to us. While wind energy will be the major contributor to renewable energy growth, the potential for solar, biomass and ocean energy technologies must also be rapidly progressed. I am firmly committed to accelerating delivery of the ocean energy strategy starting in 2008. We intend taking a range of measures which will include clear market signals in the form of a dedicated technology support price.

As announced on budget day, we are providing €5.3 million for ocean energy technology and development in the 2008 Estimates. The funding will be used to build on the existing work under way by Sustainable Energy Ireland, the Marine Institute and the hydraulics and maritime research centre in UCC. It will also support the scaling up by the private sector. Pioneering work to date has already seen the emergence of Irish ocean energy development companies. The existing ocean energy testing site, which is located off Galway Bay has witnessed the successful testing of prototypes.

We need to ensure a significant scaling up by companies of technologies and businesses. The next stage is to demonstrate full scale pre-commercial development of these technologies. Investment in the necessary facilities to support commercialisation is critical to achieving breakthrough. Ocean energy worldwide is still at the developmental stage with no commercially viable or reliable proven technologies as yet available. In terms of research activity in the sector, Ireland is among the four lead nations in Europe alongside the UK, Portugal and Denmark. We are also working within the International Energy Agency's ocean energy agreement to benefit from collaboration on a wide scale. The €5.3 million made available for 2008 will significantly upscale the national investment in ocean energy. I will be announcing full details of the ocean energy package early in the new year.

Martin Ferris (Kerry North, Sinn Fein)
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Given the potential in this area, current investment is somewhat small. In particular, I refer to the Shannon Estuary, which experiences an 8 knot tide. Such a tide could allow for the use of reversible turbines to generate electricity and it offers huge potential. Does the Minister agree research facilities in University College Cork and the University of Limerick could be expanded so that practical experiments in generating electricity from waves and tides could be carried out on a wider scale? Is he satisfied that the timetable set out in the Department's strategy for ocean energy is on target? Is he confident, for example, that the pre-commercial grid envisaged in the strategy will be in place by 2010? What direct role, if any, does he envisage the State having in operating wave and tidal generating capacity?

Eamon Ryan (Dublin South, Green Party)
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I agree with the Deputy there is undoubted potential in this area to develop resources. The tidal potential is more localised. Wave power comes in along the Atlantic coast and elsewhere but tidal resources are more site specific and include areas that experience high tide speeds. This raises issues regarding the technology used and whether a tidal barge, which traverses an estuary, should be deployed, as it can lead to complications and difficulties, or whether open tidal systems out at sea are used. We will have to examine which is the best way to go.

I also agree with the Deputy regarding the enhancement of skills in the universities in Cork and Limerick and the Marine Institute. Facilities must be developed in areas close to the energy sources. People have taken a lead in the locations mentioned by the Deputy.

I am satisfied that the ocean energy strategy set out in 2005 is on target. We are moving into the next phase, which involves pre-commercial grid connected devices. That will require a range of different supports relating to grid connection and pre-commercial support prices, which will have to be tested. I am satisfied with progress in this regard but I would not become complacent. This is complex and certain technologies may not evolve. Our options must be kept open so that we do not miss out on a technological development that may occur.

The State's role is to leverage investment and to set up the regulatory environment, grid connection and price support systems but not necessarily to be the technological developer. That is not where the Government's expertise lies. It is more likely to lie within innovative new Irish companies emerging in this area. The State will support them but it will not be the lead developer. However, the energy expertise in existing Irish companies such as Bord Gáis or the ESB could be deployed in this area. Their engineering and electricity generation skills could be used to establish what could be delivered.

Simon Coveney (Cork South Central, Fine Gael)
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This is potentially an exciting area for Ireland. An allocation of €7 million has been set aside for ocean energy. A significant chunk of capital funding will be invested in advancing the wave energy prototype currently floating off the west coast. That is valuable and important work. How much capital investment does the Minister need to support tidal flow energy? My office has been contacted by one person who has done significant work on electricity generation from consistent tidal flow in an estuary. He knows a great deal about this because he provides statistics to the CSO regarding tidal flows but he has had a frustrating time trying to secure support from SEI for his work. Does the Minister have a preference for tidal over wave energy? The advantage of tidal energy is its predictability and consistency. Is one technology ahead of the other?

Eamon Ryan (Dublin South, Green Party)
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No.

We must keep our options open and monitor which technologies succeed. If we knew which technology would have the best commercial application, it would be an easy business, but no one knows that. We must support a wide variety of technologies, including wave, tidal and offshore wind, to ensure there is a connection with the ocean sector, through grid connections, and not to underestimate the significant potential that exists, which is probably closer to commercial application.

I cannot give details of what support schemes can be introduced until they are in place as to do so would pre-empt a process that must be engaged in on a proper basis. This is a start. Such provision will form part of a multi-annual programme and significant further incentives will be needed. It will be a part-funding or grant application to encourage or support other investment by the private sector in devices that are not quite commercial in that they must be tested. We will also examine investment by the State in testing facilities to help that process.

Martin Ferris (Kerry North, Sinn Fein)
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I will be brief. While I welcome the Minister's indication that funding will be made available, the amount of funding that will be required is ambiguous, to say the least, given the huge potential that exists and the knock-on effect such development will have for the State as well as for the security of resources. As this type of technology is only in its infancy, I would not like its development to be held hostage to the lack of funding. I would like to be assured of that. I thank the Minister in advance for his reply.

Eamon Ryan (Dublin South, Green Party)
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The Deputy has my assurance in that regard. Within wider Government circles, including in the Department of Finance and elsewhere, it is recognised that this is an area where potential exists. The scale of it is far from certain but we should not avoid the opportunity it presents. I said a number of times today that we will develop policies or schemes early in the new year and I hope to be able to launch one in this area then. It would give some certainty to the industry that it would represent a follow through, on a multi-annual basis, of further significant support to explore what we can develop.