Marc MacSharry (Fianna Fail)

I move:

That Seanad Éireann congratulates the Government on its policies aimed at decreasing this country's dependence on imported fossil fuel by increasing use of renewable energy technologies.

The International Energy Agency has for many years identified Ireland as being one of the most energy insecure countries in the world. Most of us are already aware that Ireland has long been at the mercy of international oil markets. Such a situation was tolerable, if not ideal, when oil traded at less than $60 per barrel. However, in the current climate of oil changing hands for in excess of $140 per barrel and given the predictions by industry experts that the era of $200 barrels may be around the corner, such a situation is unsustainable even before we consider the environmental argument for reducing oil consumption. This revolution in oil prices will change markets and economies and create new opportunities for development. In a world in which oil is traded at these prices, decisions will be made on the allocation of an increasingly scarce resource. As an island economy, Ireland will be particularly sensitive to these choices.

In this context, I welcome the Government's efforts to reduce our dependency on foreign oil and gas. Our support for the development of indigenous renewable energy makes sense for the environment as well as the economy. Major strides have been made in this area over the past 12 months. I welcome the initiative by the Minister for Communications, Energy and Natural Resources, Deputy Ryan, on pricing support mechanisms for alternative energy sources such as offshore wind, biomass, wave and tidal energy. I also welcome the initiative by the Tánaiste and Minister for Enterprise, Trade and Employment on designating renewable energy as a key development area for Science Foundation Ireland.

Yesterday, the Minister, Deputy Ryan, announced a study on electricity grid connection which would be undertaken in conjunction with his colleague in Scotland, stating:

With our shared location, Ireland and Scotland have a constant and plentiful wind supply. We must use this to our advantage, which interconnection allows us to do.

The authorities in Scotland are exploring the possibility of a connection with Norway. We, in turn, could link to this through an interconnection with our neighbour.

These initiatives are already beginning to bear fruit. This year will see the milestone of 1,000 MW of onshore wind power, which few would have believed possible just a few years ago. Our offshore wind developers are poised to make a substantial contribution. The National Offshore Wind Association of Ireland has commissioned a cost-benefit analysis of the impact on the Irish economy of offshore wind. If the findings of this study are positive, they will unlock an investment of more than €5 billion and a deployment over the next five years of more than 2,000 MW of offshore wind.

The changing market means that where once we were energy poor, we now have the potential to be energy rich. We have the best wind resources in Europe and some of the best in the world. In what is rapidly becoming a new world energy order, Ireland could be a net exporter of energy under the right conditions. We can build a strong sector of green collar workers who will design and deploy the technology to generate electricity for Europe as well as for Ireland. The Commissioner for Energy, Andris Piebalgs, has indicated that he wants Ireland to take up this challenge. We must play a leading role in meeting the renewable energy needs of the European Union.

The potential for renewable energy in boosting our economy is substantial not only in terms of reducing our imports of foreign oil, but for job creation, carbon abatement and export opportunities. An economic analysis carried out on the impact of Germany's renewable energy sources Act has shown a €3.5 billion net gain to that economy from deployment of wind energy on and offshore. A cost benefit analysis in the UK has indicated the potential for creating up to 76,000 jobs through the deployment of offshore wind in the north east of that country. I am sure that the Irish offshore wind analysis will show similar benefits to this economy, particularly given our strong wind resources. I ask Members to consider the potential for creating a network of wind, marine and tidal generators off the Irish coast and the jobs in manufacturing, design, deployment and training these could support.

Achieving our potential will require a partnership between industry, regulatory bodies and the Government. The Government has made its intentions clear in this regard. We have begun the process of bringing certainty to industry through guaranteed pricing structures. We have also started to address the key infrastructure issues in regard to achieving our goals. Creation of the single electricity market was an important first step. We will soon have an east-west interconnector that will allow generated energy to flow between Ireland and the UK. We will see further interconnectors with Scotland and England and ultimately the creation of a pan-European grid. The Government is supporting the first steps towards achieving this target through our work with the Scottish Assembly and the Norwegian Government. The more interconnected we are with a European grid, the better our opportunities to become a genuine energy provider and a price maker rather than a price taker.

I commend the Minister, Deputy Ryan, the Minister of State at the Department of Communications, Energy and Natural Resources, Deputy Seán Power, and their officials on the work they have done to date. We are creating a business environment that will support the deployment of renewable energy. Policies implemented by this Government have supported the first deployment of wave and tidal energy in Irish waters, brought progress towards mass offshore wind power and helped the emergence of offshore wind as a mainstream power source. We are only at the beginning of our energy revolution but with the policies our Government is pursuing, Ireland can be the green energy centre for Europe. I commend the motion to the House.