Shift from fossil fuels is major focus of strategy

Energy policy: The Government is to spend €8

Energy policy:The Government is to spend €8.5 billion during the plan on trying to achieve three core objectives in the field of energy: to keep prices low, maintain security of supply, and meet high environmental standards.

While a portion of the spending will be made by central Government, the report reveals that semi-states like the ESB, Bord Gáis and Bord na Móna will spend €7 billion between them. The plan says this money will come from borrowing, from the companies' own resources or from joint ventures.

The plan says that by 2010, about 15 per cent of electricity should come from renewables. This target was previously announced by Minister for Natural Resources Noel Dempsey. But the plan holds out the possibility of moving this target upward once a new White Paper on energy is published.

A central concern of the plan is to move away - at least partially - from fossil fuels. Consequently, the plan talks about getting 5.75 per cent of the transport sector to use bio-fuels which produce fewer carbon emissions.

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The plan also talks about supporting research and development to find newer, greener forms of energy.

Ireland's energy system currently suffers from high demand and unreliable levels of supply. In order to address this, the plan places heavy emphasis on electricity interconnectors with the UK and Northern Ireland.

Consumers in the Republic have endured several price increases over recent years and the Government clearly believes that getting power in from Northern Ireland and the UK is the best way tackle both high prices and security of supply.

The plan describes the two interconnectors - to Northern Ireland and the UK - as "key strategic projects".

Both will bring in additional electricity into the Irish market and may help to lower prices. Electricity imported from the UK is likely to be cheaper.

The plan makes it clear that none of the semi-state companies in the energy market is likely to be privatised.

The plan talks about these companies making investments under the control of their Government shareholders until 2013.

While no details are given, the plan says that in certain limited instances, the Exchequer might be able to provide funding directly to these companies for certain types of infrastructure.

Ireland's extreme reliance on imported fuels like oil and gas is a constant theme in the energy sections of the plan. In that context the plan suggests the construction of oil and gas storage facilities, both with North-South dimensions.

The plan breaks down what each of the three semi-states - ESB, Bord Gáis, Bord na Móna - will be spending the money on.

Most of the elements are unsurprising, mainly concerning building up the gas and electricity transmission networks.

One interesting element is that the ESB intends to connect 350,000 new customers between 2007 and 2013. This is a significant figure, even by international standards.

The energy sections make plain that Bord na Móna will increasingly become a renewable energy company with wind farms in Mayo and the midlands.

The plan also advocates better energy efficiency among homes and businesses.

The plans commits the Government to an annual saving of at least 1 per cent of energy use across the economy over the lifetime of the plan.