FIANNA FIL

POLICY PAPER
A P R I L

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MICHAEL
MOYNIHAN TD
SPOKESPERSON FOR COMMUNICATIONS,

E N E R G Y

I N

I RENERGY
E L A N D
AND NATURAL RESOURCES

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Executive Summary
Fianna Fil believes Irelands current energy policy is driving
up consumer prices, making our economy uncompetitive and
failing to tap into the opportunities presented by community
energy projects. It is time for policy makers to develop a national
energy policy which is low in cost, is respectful of local
communities and their ability to contribute to our renewable
energy future and which secures our energy supply from external
energy shocks.
Moving towards a carbon neutral environment is a long term
goal that must be targeted so that future generations will be in a
position to be energy self-sufficient. We are still excessively
dependent on energy importation to power homes and
businesses nationally. With Ireland obligated to meet the EU
target of 16% for all energy generated from renewable sources by
2020, concrete steps have to be taken. It is also important that
Ireland does not become over reliant on any one particular energy
source and diversify where possible.
In this energy policy paper, Fianna Fils proposals are outlined in
the following 5 key areas:
1:

Ensuring a Balanced and Secure Energy Mix

Strive towards carbon neutral self-sufficiency away

from heavy energy importation

Explore the feasibility of offshore wind and tidal

energy

2:

Investment in Retrofitting Homes and Businesses

Establish a cross departmental Green Deal agency to

finance a new simplified, easy access scheme across all

tenure types for home energy usage
Awareness campaigns to increase citizen energy
efficiency education
3:

Reforming and Empowering the Commission for

Energy Regulation
Empower the Commission to significantly lower
energy prices to reflect the needs of Irelands
consumers and competitiveness
Investigate competitive practices in the energy
sector and allow for sanctions

4:

Planning Infrastructure with Community Consensus

Detailed actions for community acceptance of wind

energy projects

Oppose the use of fracking

5:

Examine Expansion of Biomass

Investigate utilising biomass as a central energy

resource supplying the national grid

Explore all funding mechanisms to support biomass

projects

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Introduction
Fianna Fil believes Irelands current energy
policy is driving up consumer prices, making our
economy uncompetitive and failing to tap into
the opportunities presented by community energy
projects. It is time for policy makers to develop
a national energy policy which is low in cost, is
respectful of local communities and their ability
to contribute to our renewable energy future and
which secures our energy supply from external
energy shocks. The pursuit of renewable energy in
Ireland offers the potential to shield Ireland from
ever rising oil and gas prices and help reduce our
CO2 emissions. However, it is vital that renewable
energy projects are developed in a sensitive manner to
the environment around them and that they will
benefit the local community. It is also important
that Ireland does not become over reliant on any
one particular energy source.
This paper is based on 5 core policy areas:

1. Ensuring a Balanced and Secure Energy Mix

2. Investment in Retrofitting Homes
and Businesses

3. Reforming and Empowering the

Commission for Energy Regulation

4. Planning Infrastructure with Community Consensus

5. Examine Expansion of Biomass

Ireland imports over 88% of its energy resources,
largely consisting of gas and oil. This makes our
energy market vulnerable to external energy shocks
caused by both political and economic change in in
Eastern Europe, including the Ukraine and Russia,
the Middle East, and the wider world. Our reliance
on imports means Irelands energy market is like a
bottle cork floating in a very large and turbulent sea.
This must change.
This policy paper seeks to outline the actions
necessary to put Irelands energy supply on a more
balanced and cost effective footing while also
ensuring that community concerns are address with
regard to strategic infrastructure projects. Now is
the time for our country and our communities to
take action together to secure our future prosperity
and progress for decades to come by tackling the
challenge of our generation.

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1: Ensuring a Balanced and Secure Energy Mix
With world population projected to be over 9 billion
by 2050, the demand for remaining fossil fuels will
only intensify; driving oil and gas prices skywards.
This married to growing geopolitical instability is
threatening existing energy security. Ireland is not
fully self-sufficient and we are excessively dependent on energy importation to power homes and
businesses nationally. It is imperative that we plot
a course towards carbon neutral self-sufficiency to
meet these emerging energy supply challenges.
Ireland must ensure that our energy supply is secure
and balanced. Wind energy already provides Ireland
with over 19% of its electricity needs. This is a
significant percentage in energy terms on our grid
for any resources which fluctuates dramatically.
Until Irelands grid is fully integrated into the
European energy market further increases in our wind
energy capacity are misguided especially in light of
the EUs adjustment in climate change targets and
energy focus. EU aims for 2020 set renewable energy
targets for each Member State. Ireland is obligated to
meet the target of 16% for all energy generated from
renewable sources by 2020. This renewables target
is to be met by 40% from electricity, 12% from heat
and 10% from transport.
The new 2030 proposals governing the EUs climate
and energy policy post-2020 envisages a 40 per
cent decrease in carbon emissions from 1999 levels
by 2030, and an EU-wide target of 27 per cent for
renewable energy. National guidelines in this area
have been removed in the 2030 targets for renewable
energy. The renewable energy target is now an EU
level target which is binding on the Union as a whole
but gives Member States greater flexibility to adapt
to their national preferences and circumstances. This
has resulted in the UK rolling back from its plan to
import wind energy from Ireland in order to reach
its EU targets. Ireland should therefore focus more
on reducing energy consumption and our carbon
emission rather than seeking to dramatically increase
our reliance on wind energy at a very high cost. Other
alternative renewable energy resources must also be
pursued such as biomass energy.
Biomass energy may offer Ireland an opportunity to
dramatically reduce our carbon emissions and reduce
the necessity to spend large sums of public money on
upgrading the national grid as outlined in Grid25. The
pursuit of biomass as a renewable energy in Ireland
may also lesson the necessity to construct more wind
farms within the state.

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The future proofing of legislation should be examined

for any new fossil fuel discoveries on Irish territory
so that revenue and taxes accruing from these finds
automatically go into a national sovereign wealth
fund. Norways national sovereign wealth fund is a
model to investigate further and see if elements could
be used in an Irish setting.
Fianna Fil questions the need for plans to build
industrial sized wind farms due to the negative
impact on the local communities and the lack of
demand from the UK for Irish wind energy. The
shelving of plans to export power to the UK from
wind turbines in the Ireland now means that our
national grid will have an oversupply of wind energy
if the projects originally proposed go ahead. Given

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wind energys unstable and unpredictable nature

of production, further reliance on wind energy may
undermine the stability of our national grid. To
illustrate this, only 43 MWs of wind energy were
produced during the week beginning on 30th
September 2013 according to the Commission for
Energy Regulation. Yet wind generation produced
1,769 MWs on 17 December 2013. That is a variation
of 1726 MWs on our Grid, which represents more than
half our energy needs in the summer.
Furthermore, it is very peculiar that three semi state
companies are competing in the wind market. Bord
na Mona, Coillte and ESB have all invested hundreds
of millions in constructing numerous wind turbines
nationally. They will be in direct competition with one
another, while still owned by the state. We should be
diversifying our renewable portfolio where possible
because wind does not guarantee security of supply.
Offshore wind and tidal energy are other renewables
that have the potential to contribute to future
renewable targets beyond 2020.
Nevertheless,
Government most invest in greater research and
development (R&D) in examining the abundant Irish
offshore renewable energy resources. Ireland has a
landmass of around 90,000 square kilometres, with a

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sea area approximately 10 times that size, at 900,000

square kilometres, located on the Atlantic edge of
the EU. This gives us an immense opportunity to
maximise the potential emanating from offshore
wind energy via sea based turbines that generate
electricity. While the main disadvantage of offshore
wind is high construction costs, the major advantage
relates to the more powerful winds that blow offshore,
away from population centres.
Tidal energy is another offshore renewable that could
tap the enormous potential of our geographical
position. Tidal power is a type of hydropower that
generates electricity by the slow movement of large
volumes of water according to the sea tides that flow
in and out twice daily. In Strangford Lough in county
Down, a company have installed a 1.2MW tidalenergy unit - the worlds first full-scale commercial
prototype tidal turbine that generates electricity while
connected to the grid. While challenges remain for
more widespread use, this technology needs further
R&D to make it more economical for greater
commercial roll out, thereby enhancing security
of supply. Overall, a broader mix of renewable
energy is required and further reductions in energy
consumption should be pursued in order to ensure a
balanced and secure energy mix.

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2: Investment in Retrofitting Homes and Businesses

Moving towards a carbon neutral environment is a
long term goal that must be targeted so that future
generations will be in a position to be energy
self-sufficient. The dependency burden of importing
energy to power the national grid is not sustainable
and should not be passed over to the next generation.
Concrete measures such as government run awareness
campaigns to increase consumer education must
be rolled out so that energy efficiency is a constant
everyday automation for energy users. Citizens
must become more aware of their energy usage and
the levels required to keep Irish communities and
businesses connected to the national grid from
imported sources, purchased in volatile international
markets.
The National Smart Metering Programme initiated
under a FF led government is one such measure to
improve energy awareness and usage. The provision
of smart metres in all homes and SMEs will give
an instant real time usage reading, thereby giving
consumers a mechanism to reduce their electricity
and gas bill. This will enable users to change
their electricity usage away from more expensive
consumption at peak times. It will also have the
added benefit of encouraging citizens to become
more energy efficient by the direct correlation
between decreased consumption and accompanying
cost reduction overtime.
There is significant potential in Ireland for energy and
carbon saving in Irish homes and businesses. Through
the retrofitting of homes and offices with proper
insulation and cleaner heating production, carbon
emissions in Ireland could be reduced dramatically
and energy consumption could fall. It would also
provide a necessary boost for Irelands construction
industry as a national rollout programme would have

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the potential to create thousands of new jobs.

The current schemes run by Sustainable Energy
Authority of Ireland (SEAI) including the Better
Energy Homes and Better Energy Communities
schemes should be expanded further. The capital
needed to allocate significantly more funding to these
projects could be found through the reduced capital
needed to upgrade the national grid as outlined in
EirGrids Grid 25 Project due to the reduction in
energy consumption. This project is currently
estimated to cost between 3.2 billion and 4 billion.
Retrofitting along with the national rollout of smart
metering will result in lower energy bills for energy
consumers and a significant reduction in carbon
emissions in Ireland. It will also improve the housing
stock across the country and increase employment
levels in the construction sector.
Fianna Fil proposes the establishment of a Green
Deal agency, a new multi-fund cross departmental
agency tasked with accessing European Regional
Development Fund, EU Cohesion and European
Investment Banking funds as well as private finance.
The agency will be tasked with financing a new
simplified, easy access scheme across all tenure
types will revolutionise home energy usage in
Ireland. It is also vital that the Department of
Communications, Energy and Natural Resources
(DCENR) apply better regulation guidelines
to simplify existing energy efficiency funded
incentive schemes (Better Energy Financing
project) to increase take up. Reducing the
administrative burden and red tape associated with
such schemes to streamline bureaucracy and to
make it seamless for citizens to avail of energy
efficient incentives is a must.

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3: Reforming and Empowering
the Commission for Energy
Regulation
Electricity and gas prices in general in Ireland rise at a much
faster rate here than average energy costs across the EU according
to Eurostat. Ireland is often cited as being in the top five highest
household electricity prices among the 28 European Union Member
States. When prices rise in Europe, our prices are often seen to rise
at a faster rate. One example of this phenomenon occurred in 2013,
when energy costs for consumers and gas prices in the Republic
soared at a rate seven times the EU average. Gas charges in Ireland
went up by 7.4% in 2013 compared to an average increase of just
1% across the European Union. While prices have recently eased
as a result of the drop in oil prices and the expansion of shale gas,
Ireland still remains vulnerable to rapidly rising prices when the
market turns.
In June 2014, the UK Energy Regulator wrote to the largest power
suppliers in Britain seeking an explanation to consumers as to why
a decline in wholesale gas and electricity prices has not led to lower
fuel bills. No such approach has been taken by the Irish Commission
for Energy Regulation (CER). Fianna Fil has questioned why this
is not happening in Ireland. The Commission must take a different
approach to the incessant requests for energy price increases being
put forward by energy companies.
The energy regulators failure to pursue policies which result in
significantly lower energy prices at a time of record profits for Irish
energy firms and lowering wholesale energy prices has led Fianna
Fil to believe that the Commission for Energy Regulation must
be reformed and empowered. The CER must take account of the
impact of granting price increases for energy providers on our
competitiveness and consumers. At a time of massive profits for
energy companies in Ireland and decreasing energy costs, it
appears that the legislation needs to be amended to balance
the priorities of the Commission for Energy Regulation between
the needs of the energy suppliers and the needs of Irelands
competitiveness and consumers.
Key reforms must include the ability of CER to investigate
competitive practices in the energy sector and allow for sanctions
against energy companies where they are shown to be engaged
in anti-competitive practices.
In addition, the feasibility of
empowering the CER should be investigated to ensure that Ireland
reaches its 2020 target of increasing energy efficiency by 20%.
Currently, this is the responsibility of the Sustainable Energy
Authority of Ireland, which has voluntary agreements with most
energy suppliers involved in the Better Energy Programme.
Nonetheless, these have not been sufficiently implemented or
followed by suppliers. Therefore, the CER could be empowered
to set stricter annual targets for each supplier in order that they
adhere to these energy efficiency targets.

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4: Planning Infrastructure with Community Consensus
The planned construction of wind turbines and pylons
has created great concern and fear amongst local
communities in Ireland. Fianna Fil have put forward
a number of policy ideas in order to address
community concerns while also ensuring that
strategic infrastructure is constructed to the highest
international standard.
In order to address the concerns of local communities
surrounding the planning and construction of
strategic infrastructure it is vital that outdated
planning guidelines are replaced with updated
guidelines on a national legislative footing. Current
plans for significant wind energy expansion and
grid development as contained in Grid 25 should be
subject to a full economic review in light of our
reduced energy needs. These projects should also be
reviewed taking into account their impact on energy
prices and their long term sustainability in supplying
the Irish national grid.
The REFIT (renewable energy feed in tariff) scheme
has largely benefited large scale development of
renewable energy projects. However, small scale,
community driven renewable energy projects will
have a considerable impact on entire communities
with revenue being retained locally in rural areas.
Fianna Fil proposes a reform of the REFIT system
to create an initiative for smaller scale projects.
Notwithstanding the additional work and start-up
costs, developing a sustainable business model will
benefit communities, while enhancing energy supply
in the long term. To encourage take up of small scale
community energy projects energy suppliers should
be mandated to give a price discount for a certain
period.
Fianna Fil has also proposed the following actions in
order to gain community acceptance of wind energy
projects:

Ensure all county development plans have a

wind energy strategy which has been submitted

for public consultation in advance of any wind
turbine construction in that county.

Introduce a minimum distance restriction on

wind turbines from residential properties. Wind

turbines will be kept a distance of six times the
height of the wind turbine away from residential
property.

Introduce a new community share options

scheme on proposed wind farms where the local

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community must be given the option of

purchasing a minimum of 20% ownership of
wind farms in their area, creating a sustainable
wealth source for the local community.

Introduce a new compensation provision for

properties with a decreased property value as a

result of the construction of the wind turbines.

Introduce new noise and shadow flicker

restrictions which reflect international best

practice.

Examine the potential of increasing the number

of off-shore wind farms in Ireland and map areas

where this development could take place.

Fianna Fil also opposes the use of the fracking

technique in Ireland. There are potentially significant
risks to our natural environment due to the pumping
technique and the fate of the fluids used in the
drilling and fracturing processes. The possible risks
to our drinking water from fracking are simply not
acceptable. Nor is the possibility of serious damage
to our reputation as a high quality food producing
nation worth risking. The Government of France
banned fracking in May 2011 in a response to these
risks. We are not willing to subject our communities
to any potential risk which could undermine the
integrity of their water supply or the natural
environment in which they live. As a result of these
risks Fianna Fil are demanding a ban on any fracking
activity in Ireland.

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5: Examine Expansion of Biomass
Biomass is described by SEAI as land and water-based vegetation,
organic wastes and photosynthetic organisms. Such non-fossil,
renewable carbon resources from which energy can be generated
are used as fossil fuel replacements e.g. wood, grasses or crops.
Biomass is also burned to produce heat that is used to create
steam to turn turbines to produce electricity. Liquid biofuels can
also be produced from biomass crops.
It is estimated that the full implementation of current Government
policies could mean that up to 5% of electricity may be
generated from biomass in 2020. It is Fianna Fils belief that
biomass may be able to supply the Irish Grid with a significantly
higher percentage of energy if the correct policies were pursued.
We believe that the possibility of converting the coal fired power
station at Moneypoint to biomass should be examined as a way
of cutting carbon emissions and reducing the cost of producing
renewable energy.
An examination of the feasibility of utilising biomass as a
central energy resource supplying the national grid with
electricity should be carried out. The successful conversion of
the Drax coal fired power station in the United Kingdom would
seem to present Ireland with a similar opportunity to broaden the
renewable energy mix being sought here.
Long term, Ireland is predisposed to maximise biomass use due
to advantageous climate and soil conditions conducive to its
production. Increased afforestation targets will enlarge national
forest cover, strengthening the indigenous supply of timber for
biomass use. Irish cooperatives have already started to see the
potential gain from biomass energy production. The Aurivo heat
generating operation in Ballaghadereen, Co Roscommon consists
of a 12MW biomass boiler. This facility will decrease oil imports
by 5 million litres and cut the carbon output in half. It is an
imperative that all funding mechanisms are explored to
support biomass projects such as the EUs funding resource for
environment and climate change projects (LIFE programme).
Further, the DCENR must fast track the planned renewable heat
incentive for commercial renewable heating installations.
It is clear that biomass as a source of energy will have a
significant role in the heat and transport sectors where fewer
alternative technologies exist. The change of approach seen in
the electricity sector to renewables has not been replicated
in the transport sector which is now struggling to reach its
renewable energy targets. Biofuels must be part of the solution to this
challenge. The Government must be more proactive in promoting
renewable solutions for the transport sector. It must also seek
to encourage further the use of cycling and public transport as
a way of reducing congestion in our cities and the emitting of
carbon dioxide.

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MICHAEL
MOYNIHAN TD

SPOKESPERSON FOR COMMUNICATIONS,

ENERGY AND NATURAL RESOURCES

0612

Dil Eireann, Teach Laighean

Srid Chill Dara, Baile tha Cliath 2 .
Email michael@michaelmoynihantd.ie

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