Wednesday, February 16, 2011

Renewable Energy Policy - Who to vote for?

The General Election is just over a week away and all the political parties are setting out their stalls to attract the electorate.  Lots of glossy documents outlining the problems, promising the solutions.  Plenty of vision and wisdom, -it's a wonder we're in the state we're in.

All the political parties see the value of promoting renewable energy but some seem to be a bit more serious about it than others.  

So let's see what the various political parties have to say about what they'll do when they get their hands on the levers of power.  I'll present the parties in the order of their current popularity.



Fine Gael have presented a document called 'NewERA' where they set out an ambitious plan to restructure the 'Semi-State' sector of  make better use of the assets of the State.  Some Semi State companies will be merged, others sold off, new ones created, -all with an aim to increase investment (€18 billion) in the Energy, Telecom and Water sectors, and to create 48,000 direct jobs, 58,000 indirect.

FG Spokesman Leo Vardakar
And where will the investment come from?  The sale of State assets, investment from the European Investment Bank, the Pension Reserve Fund, the public through the issuance of NewERA bonds, and €7 Billion diverted from the National Development Plan.

And will it benefit small scale renewable energy generation?  Well, the core of the 'Energy' section of the plan is the creation of 'Smart Grid' and the plan to have more than 50% of our electricity to come from renewable rersources by 2020, and for Ireland to be a net exporter by 2030.  That sounds great, but is it realistic?  There's no mention of developing interconnectors with other energy markets, so I'm not so sure.


NewERA will establish a new State company, “Smart Grid”, by merging ESB
Networks and Eirgrid. Smart Grid will work towards three broad sets of targets:

1.        To make Ireland a net exporter of energy by 2030 at the latest. By 2020, we
envisage Ireland producing well over 50% of its electricity from renewables;
 
2.        To put in place a nationwide infrastructure that will allow 50% of cars to run
on electricity by 2025, with 100% running on electricity by 2030; and
 
3.        To protect Ireland from rising energy prices by getting more domestic
renewable energy sources connected to the grid as the price of oil rises.


Smart Grid will accelerate the construction of a new “smart energy grid”. This grid
will allow consumers to reduce energy bills through the installation of Smart Meters
in every home, and to sell their own home-produced energy to the network.
Smart Grid will, in addition, facilitate the rollout of greater renewable energy
generation, which will reduce our dependence on imported fossil fuels. It will also
enable the creation of a nation-wide infrastructure for electric cars, which should
significantly cut the costs of motoring over the longer term.

As part of its overall economic strategy, Fine Gael proposes that a “National
Recovery Wholesale Bank (NRWB)” will be created. The NRWB will work closely
with NewERA and will provide funds to the utilities to allow them to start
retrofitting the 1.2 million houses with poor energy ratings. The NRWB will provide
the up front funds to the power utility companies, who will then subcontract the
work to construction companies. They will, in turn, install insulation and other
energy efficient fixtures in applicant houses. The money invested in the retrofit
programme will be recouped through “Pay as You Save” schemes, which will allow
consumers to pay back the costs of the retrofit over a number of years out of the
fuel savings generated.

Here's a link to the NewERA document.

Words not mentioned - 'carbon tax', 'PSO levy', 'hydroelectrcity', 'microgeneration'

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The Labour Party have produced a document called the 'Plan for Green Energy Jobs' in which they set out the way (and need) to create an 'Energy Revolution'.  It sets out the need for government to have a coherent plan and vision at the heart of it's energy policy, and it proposes the creation of a 'Coordinating Policy Office' to ensure that this plan and vision is progressed.

Labour Spokesperson on Energy, Liz McManus
While there is no grand investment plan, the document sets out the need to support the development of renewable energy with a more streamlined planning process, investment in the National Grid, interconnectors etc.  80,000 jobs are projected, but a significant portion of those in retrofitting houses and other measures to improve energy efficiency.  The need to support micro-generation is acknowledged, but only in the context of supporting local communities.  No specific measures are outlined.


Labour recommends:

The creation of a Coordinating Policy Office within the Department of
Communications, Energy and Natural Resources. This would have the
benefit of joined up thinking and be in a position to enhance sustainability
measures in a coordinated way across a number of sectors.

Putting sustainability at the heart of energy policy across all sectors
It is imperative to promote a sustainable approach to our energy usage,
improve our energy efficiency, and integrate renewable forms of energy.

A major National Insulation/Retrofit Scheme: to leverage investment;
to reduce our national carbon emissions; to reduce our national bill for
imported fuel; to save householders money on their heating bills to create
employment and business opportunities for builders, architects, engineers,
energy services companies, plumbers, electricians, the renewable energy
sector, and the supply of green construction materials.

Investment in renewable energy and carbon reduction initiatives
through a National Strategic Investment Bank.

Enacting Legislation to ensure the growth of geothermal potential.

Implementing an ambitious strategy to promote Ireland as a test-bed
for the electrification of transport and introduction of 350,000 electric
vehicles by 2025.

Equipping the workforce with ‘green skills’ through the Labour Party’s
skills drive.

The establishment of a Renewable Manufacturing Hub to attract
investment from international and national companies and facilitate
companies to enter carbon-neutral green energy business parks.

The Development of a Smart Grid system with the infrastructural
capacity and the technological capability to decarbonise the economy is a
fundamental component of any strategy.

The promotion of solar and other renewable forms of heating.


There's quite a bit of duplication in the document so I've trimmed out any points that are just repetition.  It's all very aspirational, but not particularly coherent.  Here's a link to the 'Plan for Green Energy Jobs' document.

The creation of a 'Smart Grid' gets a mention, as does the need for interconnectors to other energy markets.

Not mentioned - 'selling State assets', 'Semi State', 'hydroelectricity', 'hydro'


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Fianna Fail have published a document called 'Real Plan, Better Future' and in it they outline their proposals for the 'Green Economy'.  I've included the entire section.  It's very striking how little there is to it.  Quite shocking actually.


The Green Economy
A crucial objective for us is to ensure that employment growth is sustainable. This
is one reason why the fast-growing Green Economy is a sector where Ireland has
huge opportunities for growth, particularly in the following areas:

• Energy export potential
• A Green IFSC
• Water management
• Ireland as a test-bed location and research hub
• Potential for convergence of ICT and energy management systems

The National Retrofit Programme which is incorporated into our National Recovery
Plan is also providing work for the construction sector. Further steps include:

• Investing €4.5 billion in our transmission distribution and international
interconnection grids to develop our renewable resources.
• Developing Ireland as a centre of new Smart Grid technology using our
advantage in a flexible grid infrastructure and as a location for energy ICT
companies.
• Identification of skills needs to capitalise on the green economy and design
of appropriate courses and training to deliver these skills.
• The publication of the Green Public Procurement Plan.

Green IFSC
Fianna Fáil strongly supports the establishment of a Green IFSC to target
environmentally-related financial services as a means of generating high value
employment and revenue growth in Ireland.

By establishing the ‘Green IFSC’, Ireland will position itself as leading financial
services centre for the management of carbon and green finance, including the
establishment of a government supported International Carbon Standard (ICS)
and associated Dublin International Voluntary Offset Registry (DIVO R).

This initiative will help to maintain the competitive advantage of the IFSC and has
the potential to create in the next five years over 4,000 new jobs and €6 billion in
revenue from this emerging sector.

The document, 'Real Plan, Better Future' is available here.


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Sinn Fein lay out their support for renewable energy in their 'Getting Ireland Back to Work' document.   Broadly positive.  It states that National Development Plan investment should be steered towards areas where we have a comparative advantage and can compete on the international stage ie renewable energy.  The major part of the manifesto is the creation of a research and funding body to stimulate the development of the Green sector, a publicly owned company to exploit renewable energy resources, and a venture capital fund to finance projects.

Key action proposals

Establish within a calendar year, Eolas Glas Éireann, a new national green technology body for research, promotion and funding of green energy and environmental technologies. Sustainable Energy Ireland would be the key element of this new body and would provide leadership in the sector, working with the Environmental Protection Agency, the Irish Climate Analysis and Research Unit, as well forming partnerships with the Irish Wind Energy Association, the ESB, Eirgrid and others, to formulate and implement an all-Ireland strategy on green technology use

Fast track and expand the promised €200 million currently earmarked for R&D into alternative energy under the Science Technology and Innovation Fund. The most recent SEI figures, found that in 2006 R&D investment for energy was only €28 million covering 321 projects in the 26 Counties

Expand the retrofitting scheme for Irish housing. €5 million was earmarked in 2008 for a regional pilot scheme, with the full €100 million envisaged in the Programme for Government now fast tracked into 2009. We propose doubling the rollout from 2009 through to 2011. €10 million was spent on home insulation in 2007 through the Warmer Homes Scheme and the Low Income Housing Scheme. The increased allocation is a positive step but must be compared to the spend in 2007 of €350m on fuel allowances.

Create a publicly owned national green tech firm for Ireland that would manage and use the island’s energy resources. It would be an energy provider and funder under the auspices of Eolas Glas Eireann, gathering expertise and resources to make Ireland energy independent by 2020

Create a specific loan/venture capital fund for alternative energy projects (there is still a lot of capital and wealth in Ireland, which could be tapped into in the form of a venture capital fund for green energy, if it is established in the right way and in the national interest). In 2008 many wind and alternative energy projects that had come through planning were delayed because of a lack of funding. The Irish Wind Energy Association reported in late June that wind farm operators were finding it difficult to finance new projects as banks were only willing to fund 70% to 75% of the constructions costs compared to over 80% before the credit crisis, and the smaller wind farm operators were being hit the most. Trinity College scientist Igor Shvets 2008 Intelligent Energy Options for the Future points out that €6 billion is spent annually on energy imports and cites government commitment as the only missing factor to energy independence in Ireland.

The document is available here.

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