Ryan urges investment in cleaner energy

MINISTER FOR Energy Eamon Ryan has called for a "strategic retreat" from our dependence on fossil fuels through heavy investment in newer forms of cleaner energy.

Ireland's import bill for fossil fuels amounts to €6 billion a year, or €1,500 for every citizen, according to new figures released by the Minister yesterday. This is more than twice the EU average.

Addressing leading figures in the energy industry, Mr Ryan called for a "spend and lend" approach to lift the economy from its current difficulties through investment in renewable sources of energy.

Over-reliance on imported fossil fuels such as oil, gas and coal will put the country on an unsustainable energy path and store up an "energy crunch" for the future, he predicted.

"I can see no better strategy than to invest in this area. The time to act is now, in times of economic uncertainty. I believe our future is clear; our job is to get on with it."

The Government's target of generating at least 40 per cent of electricity from renewable sources by 2020 formed part of a move away from traditional fuels, he said.

Dr Fatih Birol, chief economist at the International Energy Agency, presented its analysis of world energy trends to yesterday's gathering in Dublin.

Dr Birol told those present that the era of cheap oil was over, although prices would remain volatile. He also stressed the need for urgent and radical measures to counter what would otherwise be an "irreversible" trend in global warming. He warned that smaller countries at the end of the supply chain would bear the brunt of the threatened world energy crisis.

"Ireland is a very vulnerable country in terms of its reliance on the international oil and gas markets." Dr Birol called on governments not to be "slaves" to everyday issues caused by the financial crisis, by addressing the energy challenges facing the world.

Existing oil fields were being depleted very rapidly so production from new fields would have to grow significantly to compensate, he said. However, significant oil exploration projects were being delayed because of the credit crunch and this was "not good news" for global supplies.

"What is needed is nothing short of an energy revolution. It is no exaggeration to say that the future of human prosperity depends on how we tackle the two energy challenges facing us - the need for a secure and affordable energy supply and a rapid transformation to low-carbon energy."

World energy demand would expand by an unsustainable 45 per cent between now and 2030, he said, with coal accounting for more than one-third of the overall rise.

While demand for oil was declining in the West, it was growing sharply in non-OECD countries.

Most new supplies would be sourced from non-OECD regions, raising questions about the cost and stability of supplies.

Petrol and diesel: prices fall

FUEL PRICES reached a watershed yesterday with a number of filling stations around the State selling petrol and diesel for under €1 a litre.

Website Pumps.ie, which monitors fuel prices around the country, reported five filling stations in Galway, Offaly, Monaghan and Donegal selling petrol for 99.9 cent a litre. Four of these have diesel for sale at the same price.

According to the AA, which compiles a monthly survey of fuel prices, a litre of petrol fell by 18 cents in November and now costs 113 cent on average. This would be even lower were it not for the eight cent increase imposed in the Budget.The cost of diesel, which was not affected by the Budget, fell by over 15 cent in the past month.

Last July, the average price of a litre of petrol was 133.5 cent, while diesel was 143.8 cent.

AA spokesman Conor Faughnan said watching fuel prices at the moment was "like taking a still photograph of a falling rock". He said prices would continue to drop in the short term at least, predicting the average price would fall to about 106 cent over the coming weeks. By the end of the year, the average should be about €1, the lowest since early 2005, he added. KILIAN DOYLE