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POLICY PAPER
A P R I L
F I A N N A
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P A P E R :
2 0 1 5
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:
2:
4:
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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:
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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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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:
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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
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