NewERA will establish a new State company, "Smart Grid", by merging ESB Networks and Eirgrid. Smart Grid will work towards three broad sets of targets:
- To make Ireland a net exporter of energy by 2030 at the latest. By 2020, we envisage Ireland producing well over 50% of its electricity from renewables;
- To put in place a nationwide infrastructure that will allow 50% of cars to run on electricity by 2025, with 100% running on electricity by 2030; and
- To protect Ireland from rising energy prices by getting more domestic renewable energy sources connected to the grid as the price of oil rises.
Smart Grid will accelerate the construction of a new "smart energy grid". This grid will allow consumers to reduce energy bills through the installation of Smart Meters in every home, and to sell their own home-produced energy to the network.
Smart Grid will, in addition, facilitate the rollout of greater renewable energy generation, which will reduce our dependence on imported fossil fuels. It will also enable the creation of a nation-wide infrastructure for electric cars. This should significantly cut the costs of motoring over the longer term.
As part of its overall economic strategy, Fine Gael proposes that a "National Recovery Wholesale Bank (NRWB)" will be created. The NRWB will work closely with NewERA and will provide funds to the utilities to allow them to start retrofitting the 1.2 million houses with poor energy ratings. The NRWB will provide the up-front funds to the power utility companies, who will then subcontract the work to construction companies. They will, in turn, install insulation and other energy efficient fixtures in applicant houses. The money invested in the retrofit programme will be recouped through "Pay as You Save" schemes, which will allow consumers to pay back the costs of the retrofit over a number of years out of the fuel savings generated. Finally, NewERA will merge Bord na Mona and Coillte into a new company called "Bioenergy and Forestry Ireland (BFI)" to expand Ireland's position in biomass.
Despite ideal growing conditions, biomass production in Ireland remains low. In order to build on the positive role being played by both Bord na Mona and Coillte, BFI will invest €900 million over four years in order to allow it to become a global leader in the commercialisation of next generation bio-energy technologies. Thousands of jobs will also be created through an ambitious afforestation target of 15,000 ha per annum.
Some commentators have argued that because of the current recession, and the uncertainties it creates about future energy demand, Ireland should cut back on energy investment. However, Fine Gael is of the firm view that long term energy policy, where investments are being made for the next twenty to thirty years, must be made on a strategic basis and not in response to the current recession.
We also believe that the vital issue of energy security must be tackled as a matter of urgency, particularly in the light of increasing fears about Peak Oil. Ireland currently imports well over 90% of its energy needs, which leaves it very exposed to changes in the price of oil and possible disruption of supply.
We are confident that NewERA's investment in energy infrastructure will substantially reduce Ireland's energy import bill of €6 billion and will ultimately lower energy bills compared to what they would otherwise be by:
- Introducing greater competition into the market and increasingly insulating Irish consumers from rising oil prices through a greater use of renewables.
- Allowing consumers greater freedom to generate their own electricity, and giving them much more control over their use of energy through the installation of Smart Meters.
- Facilitating the move to a nation-wide infrastructure for electric cars and insulating homes with poor energy ratings.
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