Brendan Kenneally (Fianna Fail)

I move:

That Seanad Éireann:

recognises the vital importance of Energy Policy to Ireland's progress, in terms of sustained growth, prosperity and social development;

accepts that we have an obligation of duty to the next generation to be challenging and far-sighted in our energy management strategy;

welcomes the publication of the Government's Energy Green Paper entitled Towards A Sustainable Energy Future For Ireland, which sets out policy proposals for Ireland out to 2020 to transform our national energy landscape;

congratulates the Minister on his continued commitment to make Ireland an acknowledged world leader particularly in the areas of renewables, bio-fuels and energy efficiency; and

approves of the Green Paper proposing challenging and co-ordinated actions and targets across Government to move us towards a Sustainable Energy Future.

I welcome the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy John Browne. I read previously that at the rate of current usage, the world's stock of oil is expected to run out in approximately 50 years. However, usage will increase, particularly in the emerging economies of China and India, and the 50-year period could be reduced considerably. This is the challenge facing the world and it is imperative that we develop alternative energy sources. Now is the time to do so instead of waiting until it is too late. For this reason, the publication of the Government's Green Paper, Towards a Sustainable Energy Future for Ireland, is timely and has generated much needed discussion in this area.

"An Inconvenient Truth" is the name of a new movie released in cinemas last week. In it, Al Gore engages the audience on something that affects us all, namely, global warming. However, it does not take Al Gore, his book or a movie to highlight the effects of global warming. We witness the consequences every day in rising sea levels, melting icecaps, negative agricultural effects and changing weather conditions. Greenhouse gases in the atmosphere maintain a habitual temperature on Earth, but practices such as burning fossil fuels and using CFCs increase greenhouse gases at a rapid rate, resulting in Earth becoming drastically warmer. This has a negative effect on nature, as it pollutes the world and puts considerable pressure on our environment.

A strong economy and a developing population in Ireland means that there is a greater demand for energy, the main source of which is fossil fuels, including oil and natural gas. Not only are these sources unhealthy for the environment and increase carbon emissions, but they are running low in supply. Due to the Irish electricity market structure, there is little competition and the cost of this energy is high. It is essential to find a balance between development and conservation and to address the issues with the supply and cost of energy. The Government has developed a new policy to face these challenges in the form of the Green Paper, which examines the security, competitiveness and sustainability of Ireland's energy supply.

Climate change is a major negative result of energy-related greenhouse gas emissions and, therefore, these emissions need to be reduced. This paper sets out the methods and incentives to stimulate the development of renewable energy sources, which reduce the negative impact of greenhouse gas emissions. A contribution is to be made to the National Climate Change Strategy 2006 review and under the EU review of the energy crops scheme, a ministerial task force on bio-energy will be established, the national bio-energy action plan will be finalised and an action plan is to be developed in respect of energy efficiency by the end of 2006 to deliver a 20% improvement by 2020.

An all-island research and development programme will be developed in co-operation with international researchers, including the EU and the International Energy Agency, to support technology breakthroughs. An all-island renewable target is to be set. Some 15% of electricity is to be of a renewable source by 2010 and 30% by 2020. By 2010, 5% of fuel used for heat purchases should be from renewable sources and bio-fuel is to be researched and its penetration increased, the aims being a 2% increase by 2008 and 5.75% by 2010. The Department of Agriculture and Food is also to consider stimulating increased interest in energy crops. The all-island target will encourage a diversity of fuels to help to ensure that supply meets demand. There is also an aim to reduce dependence on natural gas and oil by 2020.

The Joint Committee on Communications, Marine and Natural Resources produced a report last June entitled Review of Energy. Mr. Bernard Rice from Teagasc told the committee that it "should be possible to get 5,000 miles per acre of rapeseed, roughly 100 gallons at 50 miles to the gallon". In terms of using bio-fuels, it will take upwards of two acres per car to continue driving the average distance of 10,000 miles per annum. Growing bio-fuels to continue to give every Irish motorist that 10,000-mile experience will take up a large part of the stock of arable land in Ireland. This must be a wake-up call and it clearly shows that Ireland needs policies to address the changes the future will bring.

In a further attempt to increase supply, an all-island energy market will be developed and European regional energy markets will be helped to develop. Gas and electricity supplies will be secured, ensuring an adequate and safe delivery to Ireland at all times. A network development programme in electricity and gas is to be set up and the South-North gas pipeline and the electricity network renewal programme are to be completed. Gas sources will also be diversified, gas storage facilities developed, and a European gas market supported.

Ireland uses gas to generate over 50% of all its electricity. Security of supply is, therefore, of major national importance, and more so the longer it takes to get the Corrib gas field into production. It is estimated this source will be able to supply a large segment of the indigenous gas market in the short term — approximately 30% of peak supply rising to 60% over a period. It is vital that this supply is brought on stream without further delay and in a safe manner. The Corrib gas pipeline is an opportunity to extend the gas pipeline to the previously unserviced areas of the west, north west and midlands. From the map on page 37 of the Green Paper, it is quite obvious that a large part of the country does not enjoy the benefits of natural gas. I am sure this is something my colleague, Senator MacSharry, will allude to in his contribution as he has raised this on many occasions at the Joint Committee on Communications, Marine and Natural Resources.

Renewable energy sources constitute a potential replacement for vulnerable fossil fuel imports, which are most certainly subject to continuing price increases. Therefore, renewable and sustainable energy sources are most important. The essential elements are wind, biomass, bio-fuels and wave energy.

Wind energy is already a well established component of the national electricity generation programme. There is a limit to the size of the fraction of total electricity that wind can contribute. The size of this contribution is a matter of continuing debate. For instance, Denmark produces 20% of its electricity from wind and this percentage is planned to increase in the coming years. There are many who object to wind farms in their areas, but they are becoming a necessity and it is something on which we will have to bite the bullet or suffer the consequences.

Wave energy is largely under-utilised in Ireland at present. It has an advantage over wind in that wave energy is more predictable. In this country we are well situated for wave power. However, there is a limiting factor caused by Ireland's grid configuration — transmission and distribution. The grid is at its weakest where the resource is at its greatest. Therefore, the wave power industry requires special treatment to get started and derive the benefit of developing a new industry. The Joint Committee on Communications, Marine and Natural Resources, in its report, suggested measures such as generous payments per unit of electricity delivered together with an upfront capital grant. By leading this development of wave energy technology Ireland could benefit in the way the Danish benefited from wind technology.

Biomass has the potential to replace peat and is already in use through pelletised fuels, which are growing in competitiveness and are becoming more widely available. Biomass is part of but not the entire solution. Bio-fuels offer a new and alternative fuel source and I referred previously in this House to Cork City Council, which initiated some projects on bio-fuels. This initially involved 17 vehicles which ran on rapeseed oil.

The energy policy encourages investments in hydrocarbon resources by promoting Ireland as an attractive location for oil and gas exploration. This is done through revising regulations and licences and establishing a framework for major projects. The National Oil Reserves Agency, NORA, is to be set up as an independent statutory body, and existing bilateral oil stockholding agreements in the EU will be reviewed.

The structure of the market is to be reformed. The ESB and State-owned electricity assets will be retained. The power held by any one strong player in the market will be reduced. A State-owned land bank of current and potential generating sites will also be considered.

Global warming will be the greatest environmental challenge in the 21st century. In the Green Paper, Towards a Sustainable Energy Future for Ireland, the Government attempts to face this challenge by developing energy efficiency strategies, maximising indigenous energy resources, investing in energy infrastructure, research, development, technology and innovation, and increasing competition. These efforts will reduce carbon emissions in the atmosphere, reduce the negative effects of global warming, reduce the costs of energy, and reduce the difficulties with supply. This will result in a better quality of life for Irish people, Europe and the world. I commend the motion to the House.