Ann Ormonde (Fianna Fail)

I welcome the Minister of State to the House for this debate and congratulate him and his Department on this impressive, wide-ranging Green Paper on energy. This is an issue that has many different facets and has serious implications for the future of the country and the economy.

Energy policy strikes at the heart of practically every activity undertaken in the State. It has implications for businesses of all shapes and sizes, for companies considering locating in Ireland, for meeting our Kyoto obligations and for the level of inflation. With this in mind, it is vital to have an energy policy that embraces all these distinct aspects and the Minister has managed to achieve this with the Green Paper.

It is obvious that the energy outlook is going to change considerably in the medium to long-term future. Over the next 25 years, it is expected that global energy needs will grow by approximately 50% because of economic growth and population increases. This growth, added to a continuing decline in fossil fuel supplies, will create obvious energy problems and possibly as soon as the next decade. Energy demand is expected to grow by 2% to 3% every year until 2020 and most of that demand will need to be met by imported fossil fuels. Ireland is almost completely reliant on outside factors for our fossil fuel needs. If shipments of oil and the piping of gas into Ireland were stopped in the morning, our economy would grind to a halt. It would not take much longer before large tracts of the population would have to make do without their heating and lighting.

This is not a situation we should dismiss lightly, especially in light of what happened earlier this year in Russia and Ukraine and the subsequent stand-off over gas prices. That incident created major fears throughout western Europe about gas supply. If Russia decided to stop supplying the West tomorrow, there would be considerable strain on gas supplies throughout the EU.

I was encouraged to read that large parts of the Green Paper focused on developing renewable energy sources. It is true the current technology does not allow for the widespread use of renewable energy sources. Wind energy offers great promise but the change in wind velocity in any location means that it would result in an inconsistent wind supply. Wave energy offers a more consistent source, but the technology in this area still needs further development. This will not continue to be the case. The technology will improve, especially if there is a desire to use it.

By setting an ambitious target of having 30% of all energy coming from renewable sources by 2020, the Government is helping to generate that desire. As well as protecting our environment and reducing our carbon emissions, the added benefit of renewable energy sources is that they are secure. If we rely on the wind or the waves for our energy, we will not be dependent on other countries continuing to send supplies to us. However, we will also need to improve our level of energy efficiency, which is an area that needs radical improvement.

I suggest the introduction of energy saving bulbs as the standard throughout the country and the possible phasing out of the existing bulb types. I suggest greater clarity in energy bills by the indication of the cost of unit per time of day. This would help to further promote efficient energy use. The reduction of carbon emissions is another area of concern. I would like to see more of our electricity generating plants moving to a cleaner standard and reducing their emissions.

I was concerned about the reports of an upcoming rise in ESB and Bord Gáis prices. While I accept that the regulator felt the need to ensure these semi-State companies continued to be financially self-sufficient, an increase of about 20% or more is a little excessive, given the recent drop in international oil and gas prices. I ask the Minister of State to ask the regulator to take another look at this price increase in the new year if oil and gas prices continue to drop. There is no point in the ESB or Bord Gáis generating huge profits if this is coming out of the pockets of the public.

I am delighted the Government has taken the lead in this issue. The Green Paper is a brainstorming exercise. I have an interest in the area of bio-energy which means using crops, trees and farm waste as a source of energy, even though I know very little about bio-energy. Consumer awareness needs to be created. I welcome the establishment of a task force. The Green Paper will be the basis for consultations. Young people and those interested in studying science should be given an opportunity to debate this issue. The Green Paper has stimulated my interest in examining how best we can move forward and try to bring about better efficiency in the energy area.