The ESB has published a 15-year development plan costing €22 billion, with a commitment to generate one-third of its energy needs from renewable sources by 2020. It is an ambitious undertaking by the board of a very successful State company. The ESB is clearly determined to retain its leading position in the Irish market while expanding business internationally. In that regard, it plans to invest heavily in domestic networks, smart metering and renewable energy sources while earmarking €4 billion for overseas expansion.
It is no surprise that Minister for Energy Eamon Ryan should welcome this development. The emphasis in the plan on the development of green energy has obvious appeal. And the Minister was impressed by a commitment that all households will be supplied with a smart meter within five years while the development of smart networking will allow small-scale generators sell electricity to the national grid.
These positive steps are long overdue. A shift to renewable energy sources makes sound strategic and economic sense, especially at a time of rising oil prices. Our dependence on imported energy amounts to 90 per cent of requirements and it is almost double that of our EU partners. Addressing this structural weakness, the Government introduced new price supports for renewable energy in the December budget and they appear to be having the desired effect.
Investment in the transmission network will encourage wind farms and private involvement in wind and water-based generation. It may also serve to delay Government plans to transfer ownership of the transmission network to the State company Eirgrid. To fund its ambitious development scheme, the ESB will have to borrow heavily. An independent assessment of the technical, financial and operational issues involved in the unbundling process is planned. Management and trade unions will be consulted along with officials from the Department of Finance. In the meantime, legislation has been prepared to allow Eirgrid take ownership of a cross-channel electricity connector, due to be completed by 2012.
Some €4 billion has been earmarked for ESB expansion into the international market and in generating plants in Britain and on the Continent so the company can trade electricity through interconnectors. Of particular importance to this State, however, is the commitment to halve greenhouse gas emissions while expanding use of renewable energy.