Review of energy policy is ‘vital’

A MAJOR review of Ireland’s national energy policy is needed immediately in order to avoid a waste of capital investment.

The Irish Academy of Engineering – the national representative body for the engineering profession – has made the call, claiming that upcoming proposed investment levels in the energy sector here, don’t account for the effect of the global economic downturn.

The academy – which, yesterday, issued a report reviewing Ireland’s energy policy in the context of the changing economy – said that capital investment levels in Ireland’s energy sector could reach €30 billion in the period up to 2020. This, it added, includes investment in conventional and renewable power generation, gas and electricity distribution networks, the national grid, interconnection to Britain and electric vehicles infrastructure.

“These plans are based on pre-economic crisis growth projections, which envisaged growth in energy demand of approximately 30% between early 2008 and 2020. Because of the economic downturn the actual growth rate could be as low 10% in this period. Ireland’s energy prices are already among the highest in the EU with highly negative consequences for competitiveness in the critical export sector. Price moderation is now vital,” the academy warned.

As well as “a major and early review” of the national energy policy, the academy has also recommended a deferment, or freezing, of a wide range of capital projects to ensure investment matches demand in the most economic manner. It also said that “a major step-up” is needed in energy conservation and efficiency programmes over the next three-to-four years, as “the best means of stimulating job creation in the wider energy sector”.

Ireland must also “keep abreast” of all the areas of emerging technology, including nuclear energy, in a “technology neutral” manner, yesterday’s report urged. “While the long-term aim of having a highly efficient and more eco-friendly energy sector remains a key consideration, much has changed in the global energy environment since the publication of the future Energy Policy in Ireland report in 2006. In this report, the academy recommends a very significant change in the direction of national energy policy.”