The European Commission has recently published a communication on EU energy policy that makes interesting reading. The document discusses where the EU fits in the global energy market, the security of energy supply and related issues such as climate change and energy safety.
The overall objective of the EU’s energy policy is to ensure safe, secure, affordable and sustainable energy supplies. The global demand for energy is, however, changing rapidly with demand from China and India making a significant impact. Globally it is estimated that demand will increase by one third between 2008 and 2035, while the EU demand will remain static, and the demand in both China and India is expected to double. Energy demand in the Middle East is expected to increase by 70% in the same period.
Growth of this magnitude is bound to put pressure on the security of energy supplies to the EU. At the moment the EU imports about half of all its energy needs from third countries and is the world’s largest energy importer when compared to other regions as the table below shows. At present trends the EU will import 70% of its entire energy needs by 2030.
Top energy importing countries and regions, 2008
Country
Exports (ktoe)
Imports (ktoe)
Net Imports (ktoe)
EU27
-482,554
1,495,097
1,012,543
USA
-167,141
798,737
631,596
Japan
-20,204
435,899
415,695
China
-67,930
278,355
210,425
India
-40,070
197,958
157,888
Source: International Energy Agency
Europe is lucky in so far as it is close to major energy sources for some fuels. Approximately 85% of natural gas and 50% of crude oil imports into the EU come from nearby Russia, Norway and Algeria. About 60% of all coal used is produced in the EU and 27% comes from Russia. The remainder, however, comes from as far away as South Africa, Australia, Colombia and America. Practically all of the natural uranium used in the EU is imported.
The EU’s heavy reliance on imported energy, combined with the overall growth in global energy demand, is bound to lead to price fluctuations and disruptions to energy supply. To minimize the risks, the communication discusses the need to invest in energy production and in the infrastructure required to move energy around – both within the EU and between the EU and the sources of supply. This includes the development of a Southern energy corridor between the EU and the Caspian/Middle East Basin as well as upgrading the Eastern corridor which links the EU to Russia through Belarus and Ukraine. Developing, and linking to, solar power in North Africa is also discussed.
According to the International Energy Agency, last year has seen the highest level of carbon dioxide emissions worldwide and the predicted increase in carbon intensive energy in future years will lead to accelerated climate change. Some countries are improving energy efficiency but globally there is little change. The communication states that there is an urgent need for global action on resource efficiency and low carbon energy solutions with demand for renewable energy predicted to triple in the next decade.
Ireland is well positioned to capitalize on this growing threat to the EU’s energy needs. We have the potential to satisfy all of our own energy needs from renewable sources and to export renewable energy to the EU. Our wind potential, combined with pumped storage, can guarantee this form of renewable energy regardless of wind conditions. We can reduce or eliminate the six billion euro bill that we pay each year for imported fuel and can gain additional revenue from the sale of our energy to other countries.
Thanks to the kind readers of this blog who enquired about the absence of new blog posts over the past few months. The author has been diverted on other fronts over the summer months but is determined to get back to regular communications from now on.
This website (www.greenquest.ie) has undergone significant changes since the early part of 2011. The most significant change is the ending of the monthly quiz with prizes. This is due to the drop in sponsorship brought about by the general economic downturn. The website has always operated on a pro-bono, not-for-profit basis and all sponsorship was given out as prizes, apart from the money paid to the web host. There is just sufficient funding this year to keep the site open so the quiz and prizes were dropped and the environmental theme pages and an occasional blog were maintained.
The economic downturn has, to some extent, pushed environmental issues off the current affairs agenda. This is understandable as people worry about job losses, dole queues, emigration, negative equity and mortgage repayments. Politicians and economic commentators worry about a double dip recession and talk about the need to return to economic growth.
Global growth in a world of finite resources is difficult to sustain indefinitely, especially in a world where population figures are predicted to pass the 7 billion mark by the end of this year. Climate change and peak oil can only exacerbate the problem. At present millions are starving in Somalia, and Texas is experiencing one of the worst droughts since records began.
The economic collapse in Ireland should be used as a springboard for development that is truly sustainable. Long term sustainable development is built on three pillars; economic, social and environmental. Ireland has strong social cohesion and a magnificent environment. By leveraging these two pillars we can develop the economy along sustainable lines that will not go through cycles of boom and bust but will be steady and sustained. Exploiting our renewable energy potential, especially wind and pumped storage, should be a priority.
The need remains to raise environmental awareness, particularly in these tough economic times. This website was established to make a small contribution to that need with the tag line 'Engage, Inform and Inspire' . While we can no longer engage people through the offer of monthly prizes we hope that the many hundreds who log on each week will continue to do so.
Green Energy BizCamp is an event being organised in Kilkenny by the Carlow Kilkenny Energy Agency and the Kilkenny Leader Partnership to promote businesses ideas / innovation and job creation in the Green Energy Sector. The camp is an information sharing event where experienced entrepreneurs and businesses network and share experiences on developing business ideas & products.
BizCamps have been run successfully at various locations around Ireland and last year saw Kilkenny host Ireland’s first ever FoodCamp and WordCamp. These Camps are modeled on the idea of having all of the information of a normal conference but with the added value of greater networking opportunities and without the costs and strict agenda associated traditional conferences.
This will be the first ever Renewable Energy Camp to be run in Ireland and is free for those attending or speaking. The date is 27th May and the venue is the Hotel Kilkenny which is on the city’s ring road. It offers an ideal opportunity to explore the business opportunities in this sector and participate in a panel discussion.
Speakers
The day is subdivided into 18 slots of 45 minutes each (3 concurrent sessions) where speakers are required to participate and present on a topic of their choice. All speakers are voluntary, share experiences and do not attempt a sales pitch.
At present the agreed speakers include
Michael Prendergast – kilkennycereals.killure.ie
How the Governments pursuit of its renewable energy targets lead to decisions which decimated indigenous Irish renewable businesses in favour of imports.
Tom McEvoy, Lisdowney Wind Farm
Developing a windfarm project – from start to 80% completion.
Joe Heron, www.murrayconsult.ie
Community consultation on Green Energy ptojects.
Tommy Cooke, Renewable Energy Developer
Challenges in setting up an Anaerobic Digestion project.
Peter Kerry – www.carboncandc.com
International standard ISO 14064 for carbon management and brief overview of the EU mandatory emissions trading scheme.
Niall McManus, www.cosain.ie
Using of carbon credits in generating income to match LEADER funds for renewable energy projects.
Frank Gethings – www.EcoEvolution.ie
Archimedean Screw – hydro turbine overview.
Sean Ganley – www.cfgreenenergy.com
Wind turbine space in Ireland for farm, business and home owners.
Dr Edward O’Gorman – www.patentnav.eu
Overview of patents and trade marks in renewable energy area.
Simon Jones – www.aereco.ie
Business development opportunities in each area of renewable energy.
Panelists
There will be a panel discussion in the afternoon to finish off the day. The topic for the panel discussion is “Job Creation & Opportunities in the Green Energy Sector”.
The Panelists confirmed so far are:
Nick McGrath
Nick is the founder of Hybrid Energy who recently closed a successful €800,000 funding round for the provision of reliable, cost effective, and easy to maintain power solutions for off-grid telecommunications base stations worldwide. Their technology enables significant energy savings whilst simultaneously allowing companies to pursue a green strategy using renewable energy sources whether in the heart of the city or in the remotest areas of the globe.
Colm Byrne
Colm is MD at Glas Energy where he has been involved in promoting and selling renewable energy solutions since 2002. Market conditions have declined recently so Colm has had to re-think and re-invent his business.
Pat Blount
Pat is Business Development Manager for Meitheal na Gaoithe and he also owns and operators two wind farms consisting of 7 turbines. Pat has vast experience and knowledge of the wind industry in Ireland and views on potential business and job opportunities.
Closer to the date you can access the full programme at www.energycamp.ie
Linking together electricity grids from different countries increases the security of electricity supply and enhances the growth of renewable energy – hence it is to be encouraged. Recognising this, the member states of the EU agreed in 2002 to improve the interconnection between states and set a target of 10% interconnectivity. Ireland, along with Italy, Spain, Poland and the UK, has not achieved this target and this was highlighted recently by the EU Energy Commissioner Oettinger in response to questions in the European Parliament. Oettinger said: 'The Commission considers that an increase of interconnections between the Member States is important especially to cope with the growing generation of electricity from renewable energy sources.' But he has to admit, that Italy, Spain, Ireland, the UK and Poland are still not meeting the 2002 target".
A low level of interconnectivity not only obstructs the uptake of renewable energy, but also hurts competition in the electricity sector; ultimately hurting consumers, and it prevents the creation of a single European market in electricity. While the Commission is right in pointing out the importance of increasing interconnectivity it has shown little ambition to push hard on interconnectivity in the past. Hopefully, Commissioner Oettinger will be able to translate the importance he assigns to the topic into concrete actions in the upcoming EU Energy Infrastructure Package.
Ireland is already committed to the installation of an East West interconnector and work has started on the project. A cable, with 500 MW capacity, will run underground from Woodland in Co. Meath to Rush beach in Co. Dublin and from there under the sea to North Wales.
Rush Community Council has expressed concern about the health effects of the magnetic fields from the buried cable. However figures released by the developers, Eirgrid, show that there is little cause for concern with levels some 9,000 below accepted international guidelines and in the same range as the Earth’s background levels.
This interconnector, when completed in 2012, will allow electricity to flow in either direction and will enhance the potential for renewable electricity projects in Ireland.
The European Wind Energy Association (EWEA) just released new statistics showing that 118 new offshore wind turbines were fully connected to the grid in the first half of 2010. Those 118 turbines have a capacity of 333 MW – well over half the 577 MW installed offshore last year - showing continuing strong growth in offshore wind power despite the financial crisis. In addition, 151 turbines (440 MW) were installed but are not yet connected to the grid.
To date in Europe there are 948 offshore wind turbines in 43 fully operational offshore wind farms, with a total capacity of 2,396 MW.
"Despite the financial crisis, offshore wind continues to be a major growth industry”, said Justin Wilkes, Director of Policy at EWEA. “The number of offshore wind turbines connected to the grid in the first half of this year is well over half the total amount installed all last year and I am confident we are heading for a record year.
“There is no doubt this burgeoning industry is being held back by a lack of finance. Projects led by utilities are less affected thanks to their ability to fund investments from their balance sheets, but independent developers are severely constrained. Loans from public institutions such as the European Investment Bank are crucial and have already helped a number of projects, and this support must be extended further.”
"Europe is a world leader in offshore wind energy, and continuing growth – and the availability of finance - is essential for European jobs and competitiveness as well as for reducing CO2 emissions.”
Meanwhile consultancy PricewaterhouseCoopers (PwC) has reported that Britain will miss its target to deliver 30% of electricity generation from renewable energy by 2020 unless investment in new offshore wind capacity is increased significantly. The current scarcity of pre-construction finance is hampering efforts to build new offshore capacity, according to PwC. Offshore wind is expected to deliver around half of the additional 27GW of renewables capacity needed to meet Britain’s 30% target.
Ireland has some of the best wind resources in the world and can be a leader in this area if there is the political will to encourage it coupled with a suitably flexible electricity grid and appropriate investment finance. In a few short years we could be net exporters of renewable electricity and could reduce our imports of fossil fuels substantially.
Comments
Post has no comments.