Brian Ó Domhnaill (Fianna Fail)

I second the motion. Given the ever increasing cost of energy, this is one of the most important issues faced by Ireland and the world. Anyone who drives to a service station to fill the tank of a car, jeep or bus cannot but notice the difference in price compared to six months ago.

Energy is all around us and is needed for the growth or formation of almost everything. There are many sources of energy in our world but for too long we have relied on fossil fuels. We must move away from these finite energy sources to renewable supplies. The Government must be commended in this regard. The 2006 energy White Paper sets out targets for electricity generated from alternative and renewable energy sources in Ireland of 15% of electricity consumed in 2010 and 33% in 2020. The dominant means for providing the required new capacity will be on and offshore wind. The Government's objective is to provide additional capacity by biomass, small hydroelectricity projects and ocean energy as it works to realise the full potential of our renewable resources.

It has been documented in several studies that Ireland has some of the best environments in Europe, if not the world, for wind energy. A number of small companies are being established in the west of Ireland with a view to capturing hydro-energy. The small streams that run through grassland, highland and low-lands can be captivated and turned into energy. I acknowledge the Government's commitment to this new initiative.

Much work has been done in regard to renewable electricity which has grown rapidly since 2004. For example, in 1997, 3.6% of our energy came from renewables. This was the benchmark year for the European Union in terms of readings and recordings. This grew in 2004 to 5.2%, in 2005 to 6.8% and in 2006 to 8.6%, which is sizeable growth. It is estimated that 9.5% of our energy in 2007 came from renewables. In this regard, almost 10% of our energy comes from renewable sources.

The all-island grid study, referred to by Senator MacSharry and published in January this year, concluded that it is technically feasible that by 2020, 42% of electricity generated on the island of Ireland will be from renewable energy sources. The study shows that we have the potential to do more than reach the target of 33%. That target was always going to set the base rather than the limit of our ambitions and the Government is committed to delivering by 2020 the highest possible percentage of renewables. This will require major investment in our electricity transmission network and significant investment from the renewables sector itself.

There are other complex technical and policy challenges inherent in achieving this ambitious level of integration of renewable energy into the grid. The Grid Development Strategy 2025, which is being finalised by EirGrid, will be critical to the success of this project.

The greener homes scheme launched by Government in March 2006 provides support to homeowners wishing to invest in a range of domestic renewable energy heating technologies, including solar panels, biomass boilers and stoves and heat pumps. The scheme has proved very popular with 22,000 grant offers in place across the three technologies. Already 13,750 of these offers have been paid following the successful installation of the systems resulting in an investment of €42 million to date. These completed systems have resulted in an annual reduction of 33,000 tonnes of CO2 emissions.

The scheme has helped establish a very strong supply industry for the products, services and fuels while the application of strict product standards and installer training and quality schemes has ensured consumers are both informed and confident in their choices. The scheme is constantly under review. Earlier this week the Minister for Communications, Energy and Natural Resources announced Phase III of the scheme. This was timed to coincide with the recent coming into force of the revised Building Regulations 2008 which for the first time provide a compulsory requirement for some component of renewable energy in all new homes.

Under the new phase, log gasification boilers will be eligible for support when the scheme re-opens for applications on 22 July 2008. Gasification boilers for the domestic sector will be supported at a fixed rate of €2,000. Sustainable Energy Ireland runs a renewable heat deployment programme called "Reheat" which provides capital support for organisations wishing to install renewable heating technologies in their premises or to conduct analyses as to the suitability of the technology. To date, grant commitments are more than €6.5 million in respect of more than 329 approved applications. Of these projects, 154 are for biomass boilers, 96 are for solar thermal installations and 39 are for heat pumps.

Sustainable Energy Ireland also runs a combined heat and power deployment programme which has been recently expanded to take account of bio-mass combined heating power and anaerobic digestion combined heat and power. A total of 77 applications have been received of which 53 are for capital investment. More than €205 million has been committed in respect of 55 applications already approved.

On renewable transport, the Government is committed to achieving a target of 5.75% market penetration of bio-fuels by 2010 in accordance with the current EU bio-fuels directive. The Government has also committed to achieving by 2010 a 10% market penetration by renewable energy in the transport sector. This outlines some of the work being done by the Government.

I commend the motion to the House. Also, I commend the work being done by the Minister and his colleagues in the Department of Communications, Energy and Natural Resources. We must work together to face the challenge of turning around our dependence on non-renewable sources. Renewable energy sources are all around us and must be harnessed. I welcome the initiatives being taken by Government which are welcomed by households throughout the country.