Written answers

Tuesday, 18 November 2008

Department of Communications, Energy and Natural Resources

Energy Policy

9:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 480: To ask the Minister for Communications, Energy and Natural Resources if he has plans to begin a national debate on our energy dependence on foreign oil gas that comes from volatile areas of the globe; if there is a commitment within his Department towards achieving energy independence as much as is feasible; if there are plans to launch a national debate on the merits and dangers surrounding nuclear power; and if he will make a statement on the matter. [40788/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The statistics in relation to Ireland's energy imports underline the imperative need to reduce the national dependence on fossil fuels.

The Government is committed to delivering on ambitious targets for accelerated development of renewable energy, which will progressively, and sustainably, reduce our dependence on imported oil and gas. Installed wind powered electricity generation capacity has now reached 915 megawatts and is set to reach over 1000 megawatts by the end of this year. As wind power penetration increases we are on target for 15% of our electricity to come from renewable resources by 2010. This is set to rise to 40% by 2020, assuming a consistent build rate of the necessary infrastructure.

In parallel with this drive to create a supply of energy from our own sustainable resources, the Government's Energy Policy Framework highlighted the need for longer term strategies to reduce over reliance on gas imports from the UK, from where Ireland currently imports around 95% of gas. Gas in the UK system currently comes from the North Sea, Norway and the Netherlands. I am advised that it is estimated that around 1% of the gas in the UK system is of Russian origin. The actions set out in the Framework include long term strategic planning by the Commission for Energy Regulation (CER) in relation to security of gas supply and working within the European Union to deliver fully integrated regional gas markets for Northern Europe as well as diversification of supply.

In this context, the CER has licensed Marathon Oil to operate 7 billion cubic feet of their depleted Kinsale field as a gas storage facility. Bord Gáis Éireann is contracted to use 5 billion cubic feet of this facility. On foot of the identification in the All Island Energy Market Framework of the need for an All Island approach to increased gas storage, further options are being examined arising from a study jointly commissioned by my Department and the Department for Enterprise, Trade and Investment in Northern Ireland.

Internationally, liquefied natural gas (LNG) is becoming a key part of strategies to ensure security of gas supply by improving connectivity of individual states to the global gas market. Therefore, another welcome market development is the plan by Shannon LNG — a wholly owned Irish subsidiary of Hess LNG Ltd — to build a terminal near Tarbert on the Shannon estuary.

The Corrib field, when in full production, will significantly reduce our reliance on imports during its lifespan, with 60% of annual and 40% of peak demand estimated to be met for around 6 years from time the supply is expected to start to decline. However, it is thought that significant potential exists for further substantial oil and gas finds in Irish waters. Encouraging further exploration activity in the Irish offshore zone is a key priority.

The robustness of existing and planned gas and electricity interconnection with the UK, and potentially with other European countries, is and will be critical, not only for Ireland's security of energy supply, but also for our future potential as an exporter of renewable energy. The current electricity interconnection capacity with Northern Ireland of 300 megawatts will be doubled with the building of the second north/south electricity interconnector. In addition, EirGrid, is progressing to schedule the building of the 500 megawatt electricity interconnector with the UK. The targeted completion date for both projects is 2012 subject to the necessary planning approvals.

In 2007, the latest year for which figures are available, 63% of Ireland's oil imports were sourced from the UK, with crude accounting for 7% and refined products accounting for 93% of these imports. In the same year Norway accounted for 22% of our oil imports, of which crude accounted for 93% and refined products 7%. The remaining 15% was mostly made up from crude imported from Denmark. The Irish downstream industry is fully privatised, liberalised and deregulated. The strategic review of the security of Ireland's access to commercial oil supplies commissioned by my Department earlier this year, has recently been finalised. I intend to publish the review shortly. My Department has in place contingency arrangements to deal with oil supply disruptions. As a member of the International Energy Agency (IEA) Ireland would be entitled to its share of available IEA oil stock in the event of a significant oil supply disruption.

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