At a recent meeting of Irish and international ocean energy experts, John Mullins, chief executive of Bord Gais, spoke of his concern that not enough investment and planning is being put into developing Ireland’s ocean energy resources, an industry which could create up to 70,000 jobs and deliver a cumulative benefit of €120 billion to the Irish economy.

John Mullins points out that as Ireland searches for a more sustainable economic model, we must look at our natural resources, including the potential of wave and tidal energy. He welcomes the publication last November of the draft Offshore Renewable Energy Development Plan but says it needs to spell out clearly what Ireland is going to do and how, to develop offshore renewable energy with specific time-bound actions.

“Energy infrastructure in Ireland over the next 10-20 years has to be about developing and facilitating national energy security of supply and not just accessing the cheapest sources of energy in the short term. Ireland needs to be decoupled from the international price of oil or else many aspects of our economy will be seriously impacted by rising energy costs across electricity, heating and transport. We must invest now for this scenario and not when the peak oil shock comes,” he comments.

John Mullins, chief executive of Bord Gais.

According to John Mullins, ocean energy has the potential to become a strong export industry for Ireland. “A new Government must learn the lessons of previous years when our economic development was blinded by property. Ireland has some of the best wind and wave resources on the planet and our technology in this area is world-class. We cannot waste this intellectual capital, it must be nurtured and invested in now,” he adds.

Although projects such as the OpenHydro and Wavebob developments were being invested in by energy companies, as a whole, Ireland is currently sending a signal of having little ambition in the ocean energy industry. “I am calling on Government to set up a ‘one-stop’ shop to facilitate the development of this industry in Ireland, coordinated by the Department of Environment, Heritage and Local Government. We need a strong proactive policy and direct investment to ensure that our country maintains and develops our expertise in ocean energy, bringing jobs, investment and long-term security of energy supply to our island,” he says.

Minister of State at the Department of Agriculture, Fisheries and Food with special responsibility for Fisheries and Forestry Sean Connick, TD, is discussing sustainable forestry and forest carbon sequestration with the Oireachtas Joint Committee on Climate Change and Energy Security today, Thursday, 13 January. The meeting is part of the Committee’s ongoing examination of the issue of sustainable forestry and carbon off-setting.

Carbon sequestration is the process by which atmospheric carbon dioxide is taken up by trees and other plants through photosynthesis and stored as carbon in biomass and soils. The sink of carbon sequestration in forests and wood products helps to offset sources of carbon dioxide to the atmosphere, such as fossil fuel emissions. Sustainable forestry practices, improving forest health and harvesting and replanting forests can result in net carbon sequestration in wood products and new forest growth.

In July, the committee issued a report which recommended that the European Union should agree that forest carbon sinks can be used to offset Ireland’s non-Emissions Trading Scheme (ETS) emissions. In the context of meeting the EU’s Renewable Energy Sources (RES) targets, more attention should be given to wood biomass, the submission concluded.

The meeting with Sean Connick, TD provides the Committee with an opportunity to get the Minister’s perspective on sustainable forestry and how forest carbon sequestration can offset sources of carbon dioxide and help reduce our carbon footprint and question the Minister on policy in this area.

In its drive towards a low-carbon economy, the EU must strive towards more ambitious CO2 reduction targets while being cautious about the risk of decreasing its energy competitiveness in the immediate future, said the European Economic and Social Committee (EESC) in its opinion on Energy Strategy 2011-2020 adopted at its December plenary session. The opinion is a response to the European Commission’s request for contributions to its work on a medium term energy strategy.

The future EU energy security strategy relies on three interrelated cornerstones: security of supply, low carbon economy and energy competitiveness. However, the EESC deplores the fact that energy competitiveness has not been given sufficient attention, which might have a number of negative consequences. Achieving a low carbon economy will in the medium term make Europe more competitive in the world but its immediate result might be the relocation of businesses and jobs outside Europe, warns the EESC.

The necessary transformation of the energy sector should start with proper pricing that includes not just production costs but also takes into account the costs of damage to society, eg resulting from the emission of pollutants, says the EESC. In the same vein, production and consumption subsidies that artificially lower its cost and uphold demand should be scrapped. Saved money should instead be channelled into research and innovation, and subsidies should support the uptake of new low-carbon and energy efficiency technologies until they become profitable, argues the EESC.

Investment in and the promotion of renewable energies have to be maintained and increased as many of these technologies are not likely to become competitive on the market by 2020. However, these efforts must be coupled with the development of the European electricity network so that it becomes fully able to accommodate energy from different sources, conventional as well as renewable ones, and cope with intermittent supply from renewable energies, says the EESC.

Consumers and businesses need not only to know how they can use energy more efficiently but also be concretely encouraged to do so. This is why they have to receive appropriate information about what they can do and get incentives to undertake these actions. Moreover, as prices are likely to be higher than in the past and the less well-off might be the hardest hit, poorer and vulnerable people have to receive assistance for complying with energy efficiency measures.

Last but not least, in the continuing absence of a comprehensive global deal on climate change the EU should consider an early move towards a 25% reduction by 2020. Firstly, this would secure some of the transformational benefit of adopting a tighter target as soon as possible. Secondly, it would, following the rather positive outcome of the UN climate talks in Cancun, retain the negotiating benefits of having a further 5% still to offer to encourage other countries to up their emission reduction targets as well in the run-up to the climate summit in South Africa next year.

The Oireachtas Joint Committee on Climate Change and Energy Security will discuss sustainable forestry and carbon off-setting with a number of forestry groups at its meeting today, Wednesday 24th November. Among those attending the meeting are: John McCarthy, None SoHardy Nurseries; Brendan Lacy, Irish Timber Growers Association; and Pat Hennessy, chairman of IFA Farm Forestry Group.

Carbon sequestration is the process by which atmospheric carbon dioxide is taken up by trees and other plants through photosynthesis and stored as carbon in biomass and soils. Sustainable forestry practices can increase the ability of forests to sequester atmospheric carbon while enhancing other ecosystem services, such as improved soil and water quality. Planting new trees and improving forest health through thinning are some of the ways to increase forest carbon in the long run. Harvesting and replanting forests can also result in net carbon sequestration in wood products and new forest growth.

The meeting will provide the Committee with an opportunity to get the perspective of a number of forestry organisations on sustainable forestry and how forest carbon sequestration can offset sources of carbon dioxide and help reduce our carbon footprint.

“The Committee has already met with representatives from Coillte to discuss the issue of sustainable forestry and carbon off-setting and we are looking forward to our meeting with these groups which are involved in forestry enterprises,” says chairman of the Committee on Climate Change and Energy Security, Dinny McGinley, TD.

The Carbon Disclosure Project (CDP) Ireland 2010 Report shows a significant increase in companies taking part. The report, principally sponsored by the NTR Foundation and prepared by KPMG, concludes that the number and quality of responses to the project shows climate change issues are now firmly established on Irish boardroom agendas.

“Businesses increasingly recognise that climate change, energy prices and energy security, and material scarcity need to be taken into account as part of their strategy, not so much because climate change and sustainability are a threat to them directly, but because there is actually an opportunity to improve their competitive edge and give them a better future,” says Yvo de Boer, KPMG special global advisor on climate change and sustainability, and former executive secretary of the UN Framework Convention on Climate Change, who was keynote speaker at the launch of the report. “Coming to grips with climate change, coming to grips with issues around energy prices, energy security and sustainability, is basically a matter of self-interest, though also, of course, for Irish people, a matter for global citizens, operating in a global market.”

Highlights from the 2010 CDP report for Ireland include:

* 33 Irish companies responded this year, compared with only 14 responses in the 2009 report.

* Among companies listed on the ISEQ, 20 (50%) of the largest 40 businesses participated in the project, up from 33% total responses last year.

* Ireland’s 50% response rate among the largest ISEQ companies is still some way behind the >80% response rate of the 300 largest companies across Europe, and a similar rate among the largest 500 globally.

* 79% of respondents have a dedicated Board or Executive Body with responsibility for governance on corporate environmental responsibility.

* More than 50% of ISEQ-listed companies and over 80% of other companies that responded, including the largest participants in the EU Emissions Trading Scheme, see positive opportunities for their businesses arising from climate change.

As well as the responses of 20 out of the 40 largest listed on the ISEQ, the report covers responses from seven of the largest eleven Irish firms involved in the EU Emissions Trading Scheme, seven other Irish companies, and 28 out of the 30 largest of Ireland’s inward investors.

In addition to the support of KPMG and of its principal sponsor the NTR Foundation, the work of CDP in Ireland is supported by the Sustainable Energy Authority of Ireland and the EPA.

The European Commission has welcomed the adoption of the Security of Gas Supply Regulation by the European Parliament. The new legislation will strengthen the coordination between Member States and ensure that effective action will be taken in advance to prevent and mitigate the consequences of gas supply disruptions.

The regulation is a major step forward to ensure that every household has gas even in the event of gas supply disruptions.

Member States, together with gas companies, are encouraged to coordinate their preventive actions and emergency plans at regional and European levels. Companies have to invest in the necessary infrastructure and ensure bidirectional flows where needed to secure supplies to all customers in case of disruption. They have to be able to deliver gas for at least 30 days of average demand.

The regulation should be formally adopted in the first half of October by the Council and shall enter into force before the end of the year.

The January 2009 gas crisis showed that a more coordinated approach is needed at European level to provide stable and secure energy supply to European citizens. The crisis also showed the vital role of gas storages and bidirectional flows as short-term crisis response.

Most Member States already started a risk assessment and put in place infrastructure needed for security of gas supply. Through the European Energy Programme for Recovery cross border infrastructures have benefited from EU co-financing of Eur1.4 billion.

At the recent High Level Meeting of the Africa-EU Energy Partnership (AEEP) in Vienna, EU Commissioner for Development Andris Piebalgs and EU Commissioner for Energy Gunther Oettinger launched the Renewable Energy Cooperation Programme (RECP) together with the African Union and announced a planned contribution of Eur5 million to start the programme.

This programme of cooperation is due to contribute to the African renewable energy targets for 2020. It aims at bringing relevant renewable energy technologies to the market in Africa.

EU Commissioner for Development, Andris Piebalgs.

“Today 1.6 billion people worldwide have no access to electricity, most of them in sub-Saharan Africa and Southern Asia. Poor energy systems undermine growth potential in these countries from 1 to 2%. We need a reliable source of electricity to fuel development,” comments EU Commissioner for Development, Andris Piebalgs. “Africa has a vast untapped renewable energy potential, ranging from hydro, to solar, wind, geothermal and biomass which could be used to ensure millions of people access to electricity.”

The Road Map for the Implementation of the EU-Africa Energy Partnership includes three priority areas and the following targets:

Energy access: Africa and the EU will take joint action to bring access to modern and sustainable energy services to at least an additional 100 million Africans by 2020. This will be a contribution to the African objective of giving access to modern and sustainable energy to an additional 250 million people.

Energy security: Africa and the EU will take joint action to improve energy security by doubling the capacity of cross-border electricity interconnections and by doubling the use of natural gas in Africa, as well as doubling African gas exports to Europe.

Renewable energy and energy efficiency: Africa and the EU will take joint action such as:

* building 10,000 MW of new hydropower facilities;

* building at least 5,000 MW of wind power;

* building 500 MW of solar energy and tripling the capacity of other renewables;

* raising energy efficiency in Africa in all sectors.

The Renewable Energy Cooperation Programme is established for a ten years period. The proposed contribution of Eur5 million will support a three year start up phase of the programme. It will come from the EC fast-start funding for climate action under the Environment Thematic Programme of the Development Cooperation Instrument.

The Confederation of British Industry has called on the UK Government to deliver key energy and planning reforms within six months, or risk undermining emissions targets and energy security. Launching a new report; ‘No time to lose: Deciding Britain’s energy future’, the UK’s leading business group warned that without clarity on Government policy, £150 billion of private sector investment in low-carbon infrastructure would fail to materialise. This investment is essential for the UK to achieve a secure, sustainable and cost-effective energy mix that includes renewable sources, nuclear power and fossil fuels.

The CBI says that uncertainty about the planning regime in particular is making investors wary of committing to new energy projects. The Government has announced it will abolish the Infrastructure Planning Commission (IPC) and replace it with a Major Infrastructure Unit with decision-making powers returned to Ministers.

Among measures the CBI is calling for from the Government by the end of February 2011 are tackling delays in the planning system, speeding up the development of carbon capture and storage (CCS) technology, and providing more detail on electricity market reform, its renewable energy policy, and the implications of the Emissions Performance Standard.

“The Government’s first few months in office have been rightly dominated by sorting out the fiscal deficit, but it must not let the timetable for energy and planning reform slip any further. Energy companies are unable to get the ball rolling on new infrastructure projects when it is unclear how the future planning regime will work,” comments John Cridland, deputy director-general of the CBI. “Uncertainty on plans for electricity market reform, slow progress on clean coal and nuclear power, as well as the cost of renewable energy are adding to the mood of caution among investors. We need investment from companies, not delays from government.”

A report by the Joint Committee on Climate Change and Energy Security and the Joint Committee on Agriculture, Forestry and Food, on the European Commission’s Green Paper on ‘Forest Protection and Information in the EU: Preparing Forests for Climate Change’ is being launched today, July 21st, at 10am in the AV Room of Leinster House.

The report, adopted unanimously by two Joint Committees, identifies how changes in policy at EU level could facilitate the Irish forestry sector in reaching its full potential.

A key recommendation of the report is that the EU should agree that forest carbon sinks can be used to offset Ireland’s non-Emissions Trading Scheme (ETS) emissions.

The report has been written on behalf of the two Committees by Andrew Doyle, TD. Deputy Doyle and other Committee members will be in attendance and available for questions.

Representatives from the Environmental Protection Agency (EPA) will appear before the Oireachtas Joint Committee on Climate Change and Energy Security today, Wednesday, 7^th July, to discuss its report Ireland’s Greenhouse Gas Projections 2010-2020.

According to the latest report from the EPA, the recession and reduced industrial production have had a significant impact on carbon emissions and put Ireland on course to meet its Kyoto Protocol commitments on gas emissions.

The EPA says compliance would be achieved through a decline in greenhouse gas emissions and the State fulfilling its commitment to buy ‘credits’ for 8.25 million tonnes of carbon.

The purchase of credits is expected to cost the State Eur110 million. The Kyoto Protocol limits Ireland’s emissions to an average of 62.8 million tonnes of CO2 per year in the period 2008 to 2012.

However, the EPA says that major challenges still remain in achieving significant reductions in greenhouse gases and concluded that achieving more stringent EU targets for 2020 would be more difficult.
 
While emissions from agriculture, energy and transport have fallen due to the economic downturn, the EPA predicts the State would still be 2.8 million tonnes of carbon emissions per year above the target for 2020.

According to Chairman of the Oireachtas Joint Committee on Climate Change and Energy Security, Sean Barrett, TD: “The meeting will provide the EPA with the opportunity to outline the key findings of its report and will also provide Committee Members with an opportunity to discuss all aspects of the report, raise any issues or concerns they may have in relation to cutting greenhouse gas emissions and examine the options open to Ireland to meet our targets.”

This meeting will take place in Committee Room 1, Leinster House at 2.30pm tomorrow, Wednesday, 7^th July. This Committee can be viewed on-line at www.oireachtas.ie/ViewDoc.asp?fn=/documents/livewebcast/Web-Live.htm&CatID=83&m=o.

The recession may have provided a stay of execution for European energy security but dangers persist, according to Datamonitor. Latest research by the independent business analyst suggests that while improved interconnections within Europe and continuing advances in energy efficiency should ensure security of supply is reasonably well assured, collective reliance on external gas supplies will increase to unprecedented levels.

Kash Burchett, energy analyst at Datamonitor, says: “It appears that the period 2016-20 will see problems emerge. The construction time required for new nuclear reactors and even new combined cycle gas turbine plants, in conjunction with a planned nuclear phase-out and coal-fired generation shutdown, present potential capacity constraints in many countries.”

He adds: “Reliance on non-EU gas supply in the total primary energy mix will be greatest at this point. Should an unforeseeable interruption to supply appear at this time, the consequences could be dire. In light of this, it seems increasingly likely that, although governments have not yet admitted it to their electorates, nuclear phase-out will be delayed in many member states.”

LNG Output

Datamonitor’s research also reveals that Europe’s security of supply hinges to a large extent on the continued expansion of global LNG (liquefied natural gas) output and limited competition from the US for deliveries within the Atlantic basin.

Given the shale gas revolution, this seems a reasonable assumption to make for the next five years, but it becomes riskier after that; well-decline rates may yet limit the long-term impact of unconventional extraction techniques.

Slowing Investment

Furthermore, slowing investment in global liquefaction capacity as a result of the recession will make itself felt around 2017 and Asian (specifically Chinese and Indian) demand for LNG remains a wild card. The current LNG glut may well tip into a seller’s market just at the point at which Europe shuts down coal and nuclear plants and dependence on LNG reaches its peak.

“This reinforces Datamonitor’s conclusion that European nuclear phase out must be delayed,” explains Kash Burchett. “The ‘perfect storm’ brewing on the horizon is well recognized in European capitals and many governments have already announced plans to push back the shutdown of their plants. Those which have not, particularly Spain, Germany and Belgium, need to make the case to their electorates and soon.”