Terry Leyden (Fianna Fail)

I welcome the Minister of State, Deputy Browne, to the House and congratulate him on his reassignment of responsibility for marine affairs in the Department of Communications, Marine and Natural Resources. I welcome too his senior staff from the Department. I hope the Minister of State will also be given responsibility for energy policy because he has wide experience in forestry and related issues.

Sustainable energy is safe, clean and a natural resource. It does not exploit countries or individuals. It gives security and peace of mind to individuals, communities and countries. Once installed, it is cost-effective to run and addresses fuel poverty.

In 1997 the Kyoto Protocol was established and EU states agreed to a target of 8% reduction in greenhouse gas emissions. Ireland was allowed an increase in emissions of 13% above 1990 levels in view of its economic status as a developing economy; emissions were 27% above 1990 levels in 2002.

Renewable energy sources include wind energy, biomass, wave and tidal current, small hydro, geothermal, solar or heat pump and cross-sector actions. I welcome the announcement by the Minister for Finance, Deputy Cowen, in this year's budget of excise relief for biofuels and vehicle registration tax relief for vehicles capable of running on biofuels.

The most recent projections by the US Geological Survey are that oil supply will peak by 2037, and will decline to virtually zero by the end of this century. We are facing great uncertainty with which we must deal. That forecast does not allow for further unrest in the Middle East or the situation in Iraq.

The depletion of oil reserves necessitates a revolution in our approach to energy policy, and it is vital that this revolution begin immediately. It concerns me that the announced measures have not been fully implemented as yet, and I call on the Minister to ensure that we do all we can to encourage the use of biofuel. Germany has become the world's biggest producer of biodiesel, and the German Government has committed itself to the conversion of 200,000 farms to the exclusive production of biofuel, while France already produces over 500,000 tonnes of biofuel annually.

In Ireland we have the capacity to produce significant amounts of biofuel. Sadly, we are lagging behind our European counterparts, as biofuel accounts for only 1% of our energy consumption. This situation must change.

All diesel engines can run on a blend of 5% biofuel and 95% diesel, and many modern diesel engines can run on 100% biofuel with no modification whatsoever. There is no reason for farmers not to grow and produce sufficient fuel to power their own machinery, if sufficient incentives were in place to encourage this approach.

We should not forget that biofuel can be only one strand of our energy policy for the future. Even if we converted our entire farm production to biofuel, we would meet only a fraction of our energy requirements. Our electricity generation capacity depends heavily on imported fossil fuels, leaving us vulnerable to fluctuations in supply, as well as prices, that will inevitably spiral as fuel becomes more scarce. Only by fully exploring all possibilities for the production of sustainable energy can the Government secure the future of our energy supply.

In Finland, 22% of energy is renewable and in Denmark, 27% of the energy requirement is generated from wind. We have a similar climate in Ireland and would equally have this capacity for wind energy generation. We need to develop a 20-year plan with specific renewable targets up to 2026.

The last three recessions in the world were caused by sharp increases in oil prices. Oil is now a scarce commodity and when it reaches $100 a barrel, we will not be able to afford it. The problem with renewable energy is that the start-up costs are prohibitive. The new grants scheme will make renewable energy a feasible and real option for people building their homes.

The civic building in Tralee, County Kerry, is heated by geothermal energy. We need to build on the capacity of the national grid to create self-sustainability for future generations. Renewable energy is not just a price decision, it is a life decision. People desire to be independent from the fluctuations in world oil prices, etc., and renewable energy gives them this independence and security. Building sustainable communities and protecting the environment are key elements of Government policy.

The European Union target is to double the contribution of renewable energy sources from 6% to 12% of total energy consumption by the year 2010. This target is stated in the Commission's 1997 White Paper for a Community strategy and action plan, Energy for the Future: Renewable Sources of Energy.

The Green Paper on Sustainable Energy was launched on 20 September 1999. The policy document includes an increased target of 500 MW of electricity generation capacity from renewable energy sources in the period 2000-05. This report should be reconsidered in light of present circumstances.

The bulk of the capacity is expected to come from wind energy. Other measures designed to accelerate the development of renewable energy in the Green Paper include the following: establishment of a renewable energy strategy group to examine all aspects of, and obstacles to, the further deployment of renewable energy technologies; a modified AER scheme; encouragement of community-based renewable energy development; provision for the sale of electricity generated from renewable sources directly to final customers; continuation of the existing tax relief measure; and consideration of other measures in the context of green taxes in future budgets. A revitalised approach to the promotion of research into the development of renewable sources of energy is also envisaged.

I call on the Minister of State to put the grants announced in the budget in place forthwith. Numerous projects are on hold pending the decision on, and announcement of, the details of the renewable energy project announced in the budget. It is vital to bring this forward as quickly as possible. Hundreds of houses await the decision to develop this scheme. The grants will be very attractive. Some of the projects under way should be included in this grant scheme.

I have contacted senior officials in the Department of Communications, Marine and Natural Resources and the documentation is not yet finalised. The cluster scheme of ten operates effectively and the grant scheme has worked in that regard. Local authorities must be more conscious of the benefits of providing alternative energy for their houses. The budget has created the opportunity and I call on the new Minister of State to take a personal interest in this issue and produce the details in the next week or two. There is no reason for such a delay between the Government decision in the budget last December and the present. Why does it take so long for details to be announced to enable people proceed with projects which are on hold, pending the decision on the level of grant aid?

This is an important debate which should be held again. Energy is vital for the future of the country. The Minister of State's appointment will assist in realising the potential in growing more products that can produce oil. He is the right man in the right place at the right time. I wish him every success in the next general election after which he will be back in Government.