Cowen vows renewable energy will be major policy

EU/Ireland: The Minister for Finance, Brian Cowen, last night pledged that the development of renewable energy sources would…

EU/Ireland: The Minister for Finance, Brian Cowen, last night pledged that the development of renewable energy sources would play a significant part in a new Government policy later this year.

He was speaking in advance of a meeting of EU heads of government in Brussels today, at which the need for a switch to renewable energy will feature as a major issue. Proposals for strict targets for all EU states to meet deadlines for switching to renewable energy sources are being resisted by some governments.

The draft proposals for the European Council, as proposed by the Austrian presidency, contain a target of 15 per cent of EU energy needs from renewable sources by 2015. The proportion of biofuels from renewable sources was set at 8 per cent.

The document emphasised that it was necessary to adopt an EU-wide development of renewable energies for both environmental and commercial reasons.

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Mr Cowen said that Ireland was committed to renewables, but he added that it was ambitious to go from 5 per cent to 15 per cent. "You should always set targets you have some chance of hitting," he said. He said the development of sustainable and secure energy on an EU-wide basis was now a big challenge.

"It is an area we will have to look at more creatively than in the past." The Minister said that a second electricity interconnector to Northern Ireland and the building of one to Britain, which could link in with the European grid, had already been agreed.

Minister for Energy Noel Dempsey would be producing a plan for consideration by the Government and decisions would be taken later this year on it.

The Minister said that another pressing issue the Taoiseach would deal with today would be state aid for foreign investment.

Last year, the EU Commission refused to allow the Irish Government to give a substantial grant to Intel for a new development at its Leixlip plant. The Taoiseach will give strong backing to a proposal at the European Council today to permit national governments to use financial aid packages as a legitimate policy instrument to encourage foreign investment.

The Austrian presidency last night endorsed the Taoiseach's decision to make the elimination of roaming charges for mobile telephone calls a priority. The recent elimination of the charges between Ireland and Britain were cited as an example for other EU states, who will discuss the issue at the European Council today.