Ireland should not rule out nuclear energy as part of a strategy to lessen the economy's dependence on oil, a new report says today.
The report by Forfas suggest that Ireland and the EU must develop an energy policy to meet the demand for energy in the post-oil era.
Estimates of when oil production will peak range from 2012 to 2030, but experts are unanimous in their view that oil resources are finite and alternative energy sources must be developed.
"Ireland should consider increasing the use of renewable energy sources for electricity generation (such as wind, wave, tidal energy), and maintaining the continued operation of Moneypoint (Ireland's only coal fired power station)," the report states.
"Although not economically feasible in the short to medium term, Ireland should consider the possibility of developing nuclear energy as a more long-term solution," the report adds.
Electricity generation and transport are the two main factors for Ireland's high oil dependence, leaving the economy especially vulnerable to any oil supply shock.
Ireland consumed nine million tonnes of oil in 2004, an amount that has doubled since 1990. In 2002, Ireland ranked third highest among the EU-25 countries in terms of oil consumed per capita.
The report said Ireland has the sixth-most oil dependent electricity-generation system of the EU-25 countries.
The amount of oil used for transportation tripled between 1972 and 2002, leaving Ireland consuming at least 50 per cent more per capita than the average of the EU-25 by the end of the period.
The report claims there is growing evidence that the era of a plentiful supply of conventional oil is approaching an end. It warns that Ireland is among the most sensitive to rising oil prices and therefore among the most vulnerable to a peak oil scenario.
The report recommends several shorter-term initiatives to encourage more efficient energy use including the use of more fuel-efficient vehicles, improved public transport and biofuels.
Ireland should also expand domestic oil storage to guarantee security of supply in the event of a crisis in the politically volatile oil-producing regions.
The Irish Wind Energy Association (IWEA) said the report's findings showed how the Government must give more priority to renewable energy sources, particularly wind power.
Mr Tim Cowhig, IWEA Chairman, said: "This study raises serious issues regarding our security of supply and price stability.
"We call on the Government to address this issue as a matter of urgency if all the hard work of the Celtic Tiger years is not to be wasted," he said.
But Fine Gael's environment spokesman Fergus O'Dowd said the idea of developing nuclear power as an energy solution in Ireland must be opposed as in the short run it is not possible and, in the long run, it will not be needed.
Mr O'Dowd said: "Ireland's dependence on oil is worrying, unsustainable and must be reduced as a matter of urgency."
Progressive Democrats energy Spokeswoman Fiona O'Malley says her Party does not believe that the nuclear option is the correct one for Ireland.
The Dun Laoghaire TD said she agreed with the findings of the Forfás report that there should be greater use of renewable energy sources such as wind, wave, biomass and tidal energy.
"While I recognised that it is prudent to consider the nuclear option in the context of a mix of sources for energy, the considerable opposition to nuclear power in Ireland - combined with our lack of nuclear infrastructure and high construction costs - would make the completion of any project uncertain and its cost estimation almost impossible," she said.
Labour's energy spokesman Tommy Broughan said: "The Forfas report highlights our over-dependence on imported oil, and the increasingly vulnerable situation of our society and economy as the supply of oil peaks and dwindles."
"Although, the depletion of supplies of oil and natural gas is becoming a matter of increasing concern, we are simply not encouraging the development of a diversified fuel mix fast enough," he said.