Address by Minister Martin at Energy Forum 2008

Thursday 6^th March in the Shelbourne Hotel, Dublin

Chairman, Taoiseach, fellow Ministers, Excellencies, Ladies and Gentlemen.

The transition from an energy-supply system based on fossil fuels, to a more sustainable energy delivery system, is indeed one of the real challenges of our time.

The transition is necessary on economic as well as on environmental grounds. As traditional sources of cheap fuel, such as oil, steadily diminish in quantity and increase in price, the economic need to develop alternative and sustainable energy sources becomes ever more pressing.

The transition has been given added impetus by the Climate Change package proposed recently by the EU Commission. The package obviously requires careful analysis and implementation, if we are to ensure its positive economic and social impact. Nevertheless, in addition to the serious challenges it poses for us, I believe we can already say that the package does have positive potential in a number of respects. For example, it provides certainty to industry on the energy and emission reduction targets which must be met across the EU by 2020. This will further incentivise both research and industry to redouble their efforts in developing renewable, low-carbon or non-carbon alternatives to fossil fuels. It also underlines for all of us, as consumers, the need to minimise our carbon emissions; the need to use renewable sources of energy; and the need to ultimately develop an energy-delivery system that does not emit carbon dioxide or other pollutants.

I am convinced that, if we are to have a sustainable solution, both the management of the transition to a more sustainable energy system, and the new system itself, must meet economic and social criteria as well as fulfilling our environment needs. Putting that in a more straight-forward fashion, it has recently been said that the future of Energy needs to be Clean; it needs to be Cheap; and it needs to be Available. Our current global system is certainly not meeting these criteria. It is incumbent on all countries, including Ireland, to move forward in our attempts to achieve a fully sustainable system.

Our event today is about working together to develop sustainable energy in Ireland; working together to develop products and services that stimulate the production of sustainable energy as well as the conservation of conventional energy and the reduction of its pollutant effect; and working together to avail of the enterprise opportunities arising in these endeavours.

There is wide acceptance of the need, in the short and medium term, to develop a range of renewable energy sources. Wind, wave, bio-energy and solar are all likely to have an important role. I believe that, in developing these sources in Ireland, we must ensure that our energy costs do not further outstrip those of competitor countries. Ireland’s ability to continue attracting high levels of foreign direct investment, and to provide a supportive environment for Irish industry generally, will depend on its capacity to deliver a secure and sustainable energy supply at a competitive price. To put this point in context from a competitiveness perspective, industrial electricity prices in Ireland were the second highest of the EU-25 as of January, 2007, and the rate of price increase in Ireland in 2001 to 2007 was almost twice that of the EU-15.

For the longer term, it is not yet fully clear how an alternative system to fossil fuel will be configured, and risk is still a very considerable factor in the sector. But when we consider that the sun provides infinitely more energy than our planet might need, when we consider the potential of wind, wave and boienergy, then we must believe that human ingenuity and enterprise can devise a system to harness these sources in a sustainable fashion. I believe that what is important, for our Forum today, is to recognise that both government and industry spending on Research and Development can be crucial, and that the sector is now one where enterprise opportunities are there to be grasped and developed.

The programme for Government contains a commitment to “support the development of environmental technologies in Ireland to achieve a win/win situation of improved competitiveness and environmental performance”.

The production of many environmental goods and services already has the support of the full range of programmes of the Development Agencies, including IDA and Enterprise Ireland. In particular, a wide range of EI and IDA programmes are available to support research in industry, to support collaborative research involving industry and academia, and to support the commercialisation of research. Both Enterprise Ireland and IDA have each recently established a dedicated unit to more actively pursue enterprise opportunities in environmental goods and services, and EI already have about sixty clients active in the sector. Enterprise Ireland also delivers a range of services and incentives to Irish industry to support the adoption and management of eco-efficient technologies and practices.

Nevertheless, we feel that more might be achieved with renewed effort, and that further opportunities remain to be exploited by industry in Ireland. My Department is currently working with Forfás, InterTradeIreland, the other Development Agencies and other Departments, to identify further enterprise opportunities in theEnvironmental Goods and Services Sector. An all-island consultancy study was commissioned in October 2007, for completion in a few weeks time. This review is being conducted in an open fashion, and we are still very much in listening mode. The views of industry expressed here today will very much be taken account in that review process.

It is important that the opportunities and challenges in the energy field are underpinned by the knowledge, understanding and the human capital that investment in world-class research can provide. The Programme for Government includes a commitment to amend the remit of Science Foundation Ireland to include a third research pillar in the area of sustainable energy and energy efficient technologies. I am please to announce with Minister Ryan today that we have agreed the principles and funding to be targeted through SFI on this third pillar. Our Departments will be working closely to secure an early launch of SFI calls in this area. Science Foundation Ireland’s focus is clearly on research excellence to enhance Ireland’s human capital in strategic areas of scientific endeavour relevant to the future competitiveness of industry and enterprise. SFI invests in building world class research teams, increasing the number of high quality researchers in Ireland and through these teams the output of new knowledge, opportunities and talented people including a stream of PhDs. SFI has been very successful in building Ireland’s research capacity in the fields of information and communications technology and biotechnology. SFI has an excellent track record in developing Strategic Research Clusters and Centres working alongside industry partners and these opportunities will now be extended to sustainable energy and energy efficiency technologies. Over the remaining period of the NDP we have agreed to combine resources and target a world-class research capacity investment through SFI of €90million. This investment will provide a solid basis to address Ireland’s challenges in the sustainable energy field.

In respect of both research and enterprise opportunities, our event today is very timely. It affords us Ministers and policy-makers who are here an opportunity to benefit from your views. It allows us to use your views to co-operate more effectively with you in developing the sustainable energy sector. I very much look forward to hearing your views and using them for this purpose.

Before closing, I would like to express my appreciation for the work undertaken by my colleague Minister Eamon Ryan in organising this event today.

And finally, of course, I want to wish you all well in your work today. I hope it can be one more forward step in our partnership to develop both Sustainable Energy and the wider Environmental Goods and Services sector.

Thank you all very much.

ENDS/ETE 1873