The decision of the Energy Regulator not to encourage the growth of wind energy is misguided, writes Fiona O'Malley TD
The encouragement of investment in the renewable energy sector must become a priority for Government. That is why I strongly disagree with the Energy Regulator, Tom Reeves, who in a recent letter to the Minister for Communications, Marine and Natural Resources said there was "no need to further stimulate the sector at this time", urging him not to extend further financial support to the wind energy industry.
Ireland is very seriously limited in its sources of energy. Gas comes to us almost exclusively from a single pipeline in Scotland. A technical failure here would dry up our gas supplies and the consequences would be catastrophic. The country's best interests are served by developing a variety of sources for our energy needs, and wind energy has a part to play in this diversification.
The challenge for Government is not simply whether we can reach the target of 13.2 per cent of our energy from renewable sources by 2010, but how the Government can maximise the potential of renewable energy and create in Ireland a centre of expertise in renewable energy technology.
The Government's Green Paper on Sustainable Energy set out a target of 500MWs (mainly from wind energy) to be reached by 2005. There are only 223MWs of wind-generated electricity on the system currently. Many experts believe that there is little or no chance of reaching the 2010 target. The market would seem to agree with them. Airtricity recently said that it will not develop any further wind projects in the Republic because of uncertainty in the market.
Remarks by ESB National Grid that wind energy plants might have to be shut down for a period when demand was low and the regulator's lengthy moratorium last year on grid connections from wind farms, which had already dealt a significant blow to investor confidence, have now been compounded by the regulator's most recent communication.
Why does this matter?
Firstly, Ireland is very dependent on imported fuel for our energy needs. We currently import 85 per cent of our energy requirements and are extremely vulnerable to fluctuations in the price and supply of oil and gas.
If you ask the man or woman in the street why oil prices rose to over $50 a barrel during 2004 they will invariably mention the war in Iraq. While this was a major contributory factor, an economist will point to the explosive industrialisation of China as a major factor. In 2004 China's oil needs have increased by more than one million barrels each day. Its annual demand is the equivalent of the average yearly oil demand of the whole world in the 1990s.
Should the Chinese continue to expand at anything like the current rate, oil prices are likely to remain high. Some commentators, such as international oil consultant Colin Campbell, also believe that we may in fact have passed the high point of global oil production. It seems undoubtedly true that oil is becoming increasingly difficult to find.
Secondly, it matters because energy is fundamentally important to future economic growth. Ireland is positioning itself as a leader in the emerging knowledge economy and it is incredibly energy intensive. An industrial strength data centre, for example, which stores, manages and processes digital data and information, including web hosting, uses about as much electricity as Dublin Airport.
Thirdly, the use of wind energy could play a significant role in helping Ireland to meet its Kyoto obligations of reducing carbon emissions. Sustainable Energy Ireland estimates that if Ireland used renewable sources of energy to produce 30 per cent of its energy needs by 2020 we could generate enough electricity for two million homes without producing the 8.1 million tonnes of CO2 that burning fossil fuels would produce.
Fourthly, it matters because Ireland is uniquely placed to exploit wind energy. We are in one of the best locations in the world for the production of wind and wave energy. In fact Ireland's wind resources are the envy of Europe.
A wind turbine in typical Irish conditions produces twice as much energy as one sited in Germany. Yet Germany is well ahead of Ireland in the use of wind energy. For example the northern state of Schleswig-Holstein produces 30 per cent of the region's total electricity needs. Other European regions are following suit. The Navarre region of northern Spain produces 50 per cent of its electricity from wind power.
In almost every industry in which Ireland operates, we are a technology taker. We use technologies developed elsewhere. With wind and wave energy we have the potential to become global innovators. Science Foundation Ireland should prioritise renewable energy technology in its funding programmes - we should move aggressively to exploit one of the few natural resources we possess. This does not mean that every beauty spot in Ireland will be marred by wind turbines.
Using technology developed for the oil industry, it is now possible to site wind turbines off the coast and out of sight of land.
My advice to the Minister, Mr Dempsey, is the exact opposite of that of the regulator. Far from not needing to provide a stimulus to the wind energy sector, we need to demonstrate to investors that the Irish Government is strongly committed to fostering growth in this area and developing what is a wonderful, natural, renewable asset.
Mr Dempsey has proven himself as a pragmatic politician with vision. Fostering the growth of the wind sector is a policy which encapsulates both these qualities.