Renewable Energy for Maritime and Island Climates Conference

Just a few years ago, a conference on renewable or alternative energy sources would have been regarded by some as a minority, specialist only event. Times have certainly changed with

• ever increasing oil and energy prices,
• forecasts of peak oil,
• the need to significantly reduce our carbon and other greenhouse gas emissions and
• exponential demand growth from China, India and other dynamically growing economies,

There is absolutely no doubt that renewable and more sustainable energy issues are central policy issues not just in the energy area but right across the Government agenda.

It is clear that the energy challenges we all face are long term issues and that they will not fade away as a temporary price spike. With this in mind I am determined to see that we develop our renewable resources in an ambitious and coordinated manner. In Ireland we have doubled our renewable generating capacity over the past two years with 846MW of capacity now fully connected to our electricity system.

We now have 50 individual windfarms with 574MW of wind capacity connected to the grid and with a further 630MW fully consented with signed connection agreements, we are well on our way to achieving our 2010 renewable electricity targets of 13.2% of electricity consumed.

The ability to achieve short term targets is welcome but I do not intend in any way to limit our ambition. An additional 1,300MW of wind projects were released into the connection process in the last few weeks. This underlines our commitment to develop this area as quickly as possible.

To ensure that these projects come to fruition, next Monday I will announce the commencement of the new Renewable Energy Feed in Tariff (REFIT) programme for renewable energy technologies.

This programme replaces a previous programme which was based on competitive tendering. The new programme will allow project developers to contract with any licensed electricity supplier up to notified fixed prices. The change away from tendering has the support of both project developers and suppliers. The price caps that are imposed will protect the consumer interest.

I believe we must be ambitious in our targets for the medium to long term. In order to ensure we can achieve ambitious targets we must plan ahead. It was for this reason, and as part of an all-island energy market project together with my Northern Ireland counterpart, Minister Angela Smith, I released a 2020 Renewable Energy Vision paper last July.

As part of the work-stream that is developing from this consultation process, a major grid study has been launched by Departments and system operators North and South. This will examine the grid and system issues that have to be addressed to achieve significantly more ambitious 2020 targets on an all island basis for renewable electricity.

While wind will provide the majority of additional renewable generation capacity in the short to medium term, there is a clear need to broaden our renewable portfolio and encourage biomass and other renewable technologies.

The recently published EU Biomass Action Plan is a very welcome initiative. The Action Plan deals comprehensively with the question of research and development, environmental standards, farmer and forestry information availability, and achieving a balance between imports and indigenous production. This is part of the solution to encouraging other forms of renewable energy.

Ireland also has one of the most promising ocean energy resources in Europe and earlier this week in Galway, I launched a new ocean energy strategy which was developed by Sustainable Energy Ireland (SEI) and the Marine Institute. As the first stages in implementing this strategy, we have recently upgraded the Hydraulics and Maritime Research Center in UCC as well as opening an ocean energy test site a mile and a half off the coast of Spiddal, Co Galway. This 37-hectare site will be open to test prototype ocean energy devices. The first wave energy device, 'WaveBob' has been deployed on the Spiddal site. SEI and the Marine Institute are also currently supporting a number of other ocean energy devices as part of their R ,D & D programmes.

I am also rolling out a €65m multi-annual package to support increased renewable energy heat initiatives. These measures include funding support for biomass commercial heaters, as well as a new programme to grant aid domestic renewable technologies. The "Greener Homes" grant programme of €27m for the domestic sector which I recently launched, includes funding for wood chip and wood pellet boilers and stoves, solar and heat pump technologies.

The scheme will be rolled-out over a five-year period and it is anticipated that it will support the conversion to renewable energy in up to 10,000 homes. The level of grant aid for the programme, typically at 40% of the capital cost, reflects a strong Government commitment to encourage people to install renewable heat technology in their homes. Interest in the scheme is proving very strong and already over 1,000 applications have been received.

Given renewed impetus by rising fuel prices, the development of biofuels is also garnering a lot of interest. I was somewhat bemused by a recent statement that I was "snoozing" my way through an energy crisis. "Evidence" of this was, according to the author, our lack of any action on biofuels. Hello! If I am snoozing, the author is certainly the Rip Van Winkle of the 21st century! Following the 2005 tax relief scheme for biofuels, biofuels will be placed on the Irish transport market by next year. I successfully negotiated a further targeted package of excise relief valued at €205m in the last Budget.

The new excise relief programme, which is subject to State-aid approval, will be rolled out from this year to 2010 and will enable us to reach the initial target of 2% market penetration by biofuels by 2008. When fully operational the relief is expected to support the use and production of some 163 million litres of biofuels each year.

The 2% target can be met from energy crops based on existing land use patterns. Obviously I hope, in consultation with my colleague, the Minister for Agriculture and Food, that we will be able to work together to encourage and support a change in land use patterns to achieve even more ambitious targets.

I will also be providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package and will build processing capacity to allow for a viable future.

I also welcome the recent EU paper on energy efficiency which highlights the importance of using our resources more carefully and ensuring that we get maximum value out of the resources we use. Alongside the development of cleaner and more efficient energy technologies we must ensure that we pay attention to the demand side of the equation.

In closing what I am told has been a very successful conference, I would like to thank the conference organisers and to wish you all good luck in developing and shaping a more sustainable energy future for us all.

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