Brendan Daly (Fianna Fail)

I join other Members in congratulating the Minister of State on his appointment and in wishing him well in that office. I thank him also for his effective work in his previous Department.

It would be difficult to discuss energy policy matters without referring to the work done by the ESB. I avail of this opportunity to express my appreciation of its work since the foundation of the State in developing energy policy and meeting our energy requirements. I especially compliment the ESB on the work it has done on the station in Moneypoint. There was some criticism in the past that emissions from that station were damaging the environment but the investment of €1.5 billion by the ESB will ensure these emissions are substantially reduced. This investment will make it a more environmentally friendly station and means we will be able to utilise the coal reserve which is there in abundance. This will enable Moneypoint to continue producing electricity in an efficient and effective manner for the foreseeable future, at least for the next 25 years.

Given the changes that have taken place in legislation and in terms of the entire approach to energy requirements, it is opportune and timely for the Government to consider the establishment of an energy agency on a statutory basis. It is necessary to have an overall view, apart from the economic view that would have chiefly comprised the financial considerations of bodies such as the ESB in the past. In the main, Governments got their energy policies from the ESB. An energy agency is required to oversee an energy policy that will deal with issues such as solar cell development, wave and hydro power, and wind energy, which is advancing very slowly, mainly because of some objections to the development of wind stations in the last several years.

It was observed in this House some days ago that Sweden intends to eliminate entirely its dependence on oil. It has already substantially reduced its dependence from some 80% 20 years ago to approximately 20%. The speaker on that occasion was careful not to mention nuclear energy. The reality, however, is that Sweden has a number of nuclear stations generating electricity, although it has decided to phase out nuclear energy by approximately 2010. It seems certain, moreover, that the Irish public will continue to reject a nuclear dimension here.

From both an ecological and environmental perspective, we must consider the issues relating to energy production and plan our policies in that regard. Senator Quinn mentioned the research done in Denmark in regard to wave power generation. Substantial and detailed research work has been done on the west coast of Clare by Limerick University and other institutions. A project was identified with the support of Scottish company Powergen to develop a wave station adjacent to Kilkee in west Clare. Funding of £1 million sterling was set aside for that project but it was unwisely withdrawn. I appeal to the Minister of State to put it back on the agenda and to commence work on it from where it had finished.

An issue arose whether the project was an economically viable proposition or a research study that was being developed. Whether it was to be undertaken for research or economic purposes, the conditions are suitable off Tullig, near Kilkee in west Clare for a wave station that would generate substantial amounts of energy at competitive prices and that would feed into the grid. People who visit west Clare, including Senator O'Toole, are familiar with Tillig in the west Clare peninsula which is adjacent to the Moneypoint station. The national grid has a presence there. An investment of £1 million sterling for that station was mooted four or five years ago and there is no reason the provision of a station could not proceed.

Immediate efforts should be made to resurrect this project that was abandoned a few years ago. It was not the recommendation of the Department or the EU but of an outside agency that the project should not be funded in the manner proposed but should be done some other way. In any event, it transpired that it was not funded and we are much worse off as a result. It is timely to review the project.

Senator O'Toole will be aware that a number of years ago it was proposed to build a station on Tountinna, the mountain overlooking the lake by Killaloe and Lough Derg similar to that on Turlough Hill. Tountinna would be suitable for such a station because it is adjacent to the lake and there are ample water supplies. Such a station would generate electricity from the natural resources and would only require limited imported products. A detailed analysis of the site was carried out a number of years ago before the ESB wisely decided to proceed with the station at Moneypoint. A practical decision has been made by the ESB to clean up its act at Moneypoint, which it is about to start.

While we have been dependent on oil and gas we will have to reduce our dependency on oil as it is becoming increasingly short in supply, even though some oil has been found off the west Clare coastline, off Spanish Point. I do know whether it is oil that has been there since the wrecks of the Spanish Armada fleet. The indications are that there is a substantial oil find in the vicinity of Spanish Point.

It is important that an energy agency is established. If there is to be exploitation of oil or gas off the west Clare coastline, detailed work must be done to ensure that we do not find ourselves in a position similar to that we faced in Rossport. It is necessary to examine all related aspects before decisions are made to exploit such resources. If we have a valuable asset, it must be exploited in a careful manner without upsetting the sensibilities and sensitivities of a sensitive part of County Clare that I represent.

It is timely and opportune for the Government to establish an energy agency that would develop an energy policy and not have to rely on the advice from what are essentially commercial bodies, unlike the ESB. While the ESB has done a good job since it was established, time has moved on and new energy challenges face this country. There were major objections to the notion of incineration. Members who spoke about the experience of incineration in Sweden would be well advised to note how incineration has been used in Sweden for district heating. Those who criticised the development of incineration in Sweden need to examine more closely what is happening there because it is much different from the view they presented.