Written answers

Thursday, 5 May 2005

Department of Communications, Energy and Natural Resources

Energy Resources

5:00 pm

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 87: To ask the Minister for Communications, Marine and Natural Resources the extent to which he expects energy conservation and efficiency measures proposed or anticipated by his Department to affect the overall energy requirements with particular reference to oil, gas, electricity and other sources of energy; and if he will make a statement on the matter. [14512/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 163: To ask the Minister for Communications, Marine and Natural Resources the extent to which he expects energy conservation and efficiency measures proposed or anticipated by his Department to affect the overall energy requirements with particular reference to oil, gas, electricity and other sources of energy; and if he will make a statement on the matter. [14743/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 87 and 163 together.

Sustainable Energy Ireland, SEI, is an agency established by Government in 2002, under the aegis of the Department of Communications, Marine and Natural Resources. Its remit is to promote and assist environmentally and economically sustainable production, supply and use of energy across all sectors of the economy. SEI is responsible for the roll-out of the energy conservation measure of the sustainable energy priority of the economic and social infrastructure operational programme of the National Development Plan 2000-2006.

Energy conservation and efficiency contribute to national competitiveness, enhanced security of supply and environmental protection by enabling the economy to produce a given level of output with less energy input.

While it is clearly difficult to predict the impact of energy efficiency and conservation measures on future energy consumption or total primary energy requirements, an historical examination shows that from 1990 to 2003 Ireland's energy intensity, an indicator commonly used for energy efficiency, fell by 3% per annum, from 0.22 kgoe per euro to 0.15 kgoe per euro at constant 1995 prices. According to the International Energy Agency's 2003 Ireland review, the country has the second lowest energy intensity in the IEA countries. For comparison, the same publication notes that Finland's energy intensity was in 2001 over 90% higher than Ireland's.

Intensity fell by 4.8% in 2002 and 5.8% in 2003, suggesting that the economy is continuing to become more energy efficient. Primary energy intensity fell by 33% between 1990 and 2003, or 3% per annum. An analysis carried out by Sustainable Energy Ireland's energy policy statistical support unit suggests that 33% of the change in energy intensity could be accounted for by structural changes in the economy. The remaining 67% was due to economies of scale, fuel mix and energy efficiency improvements.

Significant restructuring of the Irish economy has occurred in the last decade. Ireland's GDP grew by 9.8% per annum in the period 1995-2000 and averaged 7.1% from 1990-2002, and overall growth of 128% in the same period. In contrast, the total primary energy requirement increased by only 56.6% or 3.8% per annum, reflecting a significant relative decoupling of energy and GDP. Furthermore, energy-related CO2 emissions rose by only 43.2% or 3.0% per annum, largely reflecting the lower carbon intensity of electricity production, due to new high efficiency electricity generation coming on-line changes in the fuel mix to low carbon fuels such as gas and increasing the amount of renewable energy generation.

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