Northern Ireland (NI) will meet its 2012 target of 12% electricity consumption by indigenous sources says Minister Nigel Dodds as he explains how NI would do more to address climate change and help the UK meet its renewable targets.
Devolution has brought a great sense of hope and optimism about the future economic growth of Northern Ireland. Our energy sector, which is at the forefront of Europe in the creation of a single market, has a key role to play in this.
Over recent years, Northern Ireland has seen a steady increase in investment in renewable energy generation. At the beginning of 2008, electricity generation from renewable sources stood at just over 5%, and Northern Ireland is on track to meet its target of 12% electricity consumption from indigenous sources by 2012.
While I find this encouraging, we need to do more, not only because it is right in the context of climate change, but also to contribute towards the UK’s future obligations under the proposed EU Directive on Renewable Energy.
With this in mind, I announced earlier this year, in co-operation with Eamon Ryan, the Energy Minister in the Irish Republic, the publication of summary results for an Electrical Grid Study.
This Study, which is at the cutting edge of international research, was jointly commissioned by my Department, along with the Department of Communications, Energy and Natural Resources in the Irish Republic.
It has shown that the electricity networks in both regions are sufficiently robust and flexible to effectively manage a growing contribution from renewable energy, to 2020 and beyond.
This highly regarded research provides vital information which will enable Northern Ireland to plan for a future in which electricity generated from renewable sources will play an increasingly important role. The study results show that up to 42% of electricity generation from renewable sources is feasible, and that wind is currently the cheapest and most readily available source of renewable energy here.
While further work needs to be done by my Department, the Utility Regulator, the grid company and the systems operator, the Grid Study sets out what could be achieved by 2020. It also highlights the benefits to Northern Ireland of greater levels of renewable power generation in terms of enhanced security of supply, reduced usage of fossil fuels, and lower CO2 and other harmful emissions.
In looking to the future, and the very real concerns about the impact of climate change, it is clear that we must be more ambitious in setting future renewable energy targets. The Grid Study will help inform that debate and assist us in making the right choices for our future energy mix.
Over the coming year, I and my Executive colleagues will consider challenging and yet realistic renewable energy targets in Northern Ireland for 2020. I will also examine the scope for increased use of renewable heat in the region in line with the proposed EU Directive on energy from renewable sources. I am keen for Northern Ireland to learn more on this issue from other parts of the UK.
Looking beyond 2020, I want to encourage longer-term solutions to meeting energy demands from renewable resources. It is also important to ensure that Northern Ireland businesses benefit from the growing renewable energy sector and seize the commercial opportunities that this can provide.
We have already seen an effective partnership between Harland and Wolff, the former Belfast Shipyard, and Marine Current Technologies, a UK-based company at the forefront of tidal energy technology. They have worked together in the construction of marine turbines for installation in Strangford Lough. This is not only a significant project for Northern Ireland but an important milestone for tidal generation internationally.
I am determined to build on the progress that we have made to date in the emerging renewable energy sector. I will continue to work with our counterparts in the Irish Republic and the rest of the UK to meet and overcome the energy challenges that we all face, particularly as the world-wide race for fossil fuels supplies continues.
One of the first tangible products of this cooperative approach is the Single Electricity Market or “SEM”. The market, the first of its kind in Europe, began trading some £1.3 billion worth of wholesale electricity on 1 November 2007. It marks the end of two small isolated markets, in Northern Ireland and the Irish Republic, and the start of a staged process to deliver greater regional harmonisation, leading to a UK – Irish Republic – France regional market. At the same time the retail electricity market in Northern Ireland will be fully opened to competition in compliance with the European Internal Market Directive. This will bring us into line with the retail markets in Great Britain and the Irish Republic, which are already open to competition.
Creating the SEM is a major step forward in building a robust energy infrastructure in Northern Ireland. It will also help to protect the interests of consumers by promoting greater competition, while also securing a diverse, viable and environmentally sustainable long term energy supply.
We should not lose sight, however, of the fact that we must do more on sustainable energy and energy efficiency. The strategic coupling of energy efficiency and renewable energy solutions will play a major role in Northern Ireland. Along with the other Devolved Administrations, we have already undertaken activities that contribute significantly to the targets in the UK Energy Efficiency Action Plan, which aim to achieve an 18% energy saving target by 2017 across the UK.
Sustainable energy, meanwhile, cuts across all areas of Northern Ireland's Government policy making. I am keen to encourage a holistic approach within Government here and place the issue high on the agenda of the Executive.