2/10/03 Ireland's dependency on imported energy continues to grow - new research report finds

Media Information                              15th May 2003

Ireland's dependency on imported energy continues to grow - new research report finds

• Dependency on imported energy up from 65% in 1990 to 87% in 2001
• Greenhouse gas emissions significantly exceed Kyoto Protocol limits

Ireland's dependency on imported energy has grown from 65% in 1990 to 87% in 2001, compared with an EU average of 50%. While we now produce more energy from renewable sources its contribution to primary energy supply has remained at around 2% over the same period.

These figures were released today as part of a new statistical research report entitled Energy in Ireland 2002, published by Sustainable Energy Ireland’s (SEI) Cork-based Energy Policy Statistical Support Unit. The report examines energy trends in Ireland since 1990, discusses the underlying causes and relates the trends to Government and EU targets.

The report shows that imported oil remains the dominant energy source in Ireland, with its share of the fuel mix increasing from 46% in 1990 to 58% in 2001.  Oil consumption almost doubled in absolute terms over this 11-year period. The share of solid fuels (coal and peat) in the fuel mix has declined from 37% to 20% while the contribution from natural gas increased from 15% to 21%. However, with the decline of the Kinsale gas field, around 85% of Ireland’s natural gas consumption is currently imported.

Renewable energy contributed only 1.7% in 2001 compared with 1.8% in 1990. However, in absolute terms certain renewable energy sources including wind and biomass increased since 1990 by 84%, increasing their overall share from 1.2% to 1.4%. In particular since 1998, the growing contribution from wind energy is evident.

According to the research, Ireland’s overall energy consumption grew by 57% between 1990 and 2001, prompted by significant economic growth. Growth in 2001 was 5.5% while the average annual growth during the 1990-2001 period was 4.2%. Growth, averaging 7.1% per annum, was highest in the transport sector which accounted for 30% of Ireland’s energy demand in 2001. The residential sector has grown at a slower rate of 2.4% per annum and is now responsible for 26% of energy consumption in Ireland.

Energy consumed in the average Irish home is responsible for 9 tonnes of CO2 per annum.  Improving insulation and efficiency standards in new homes are driving down the average emissions from fuel for heating, but the demand for electricity continues to grow faster than the rate of household formation.

The industrial sector consumed 24% in 2001, a lower share than in 1990 despite active growth over the period. The services sector accounted for 18% of national energy demand in 2001, and has been growing consistently at a more rapid rate than either the industry or residential sectors.

All sectors, with the exception of transport, have shown some degree of decoupling of economic growth from energy consumption. This is reflected in the fact that the “energy intensity” of the Irish economy, or energy consumed per unit of national output, fell by 26% between 1990 and 2000. One third of this reduction was due to structural changes in the economy, with the balance being achieved through improved energy efficiency. However, transport maintains a strong direct coupling with economic growth.

The report shows that greenhouse gas emissions in Ireland during 2001 were 27% higher than their 1990 levels.  This bears out the findings of a recent European Environment Agency report.  Under the Kyoto Protocol, ratified by Ireland in 2002, Ireland’s target is to limit annual greenhouse gas emissions to 13% above 1990 levels by the period 2008 – 2012.  Projections in the government’s National Climate Change Strategy indicate that emissions levels may rise to 37% above 1990 levels by 2010 if Ireland continues on a "business as usual" path.

Energy production and consumption was responsible for 66% of Ireland’s total greenhouse gas emissions in 2001, growing from a share of 57% in 1990. Agriculture related emissions fell from 34% to 27% in the same period, reflecting the growth and changing structure of activity in the Irish economy.

Commenting at the launch of the report, David Taylor, Chief Executive of SEI, said, “The Celtic Tiger economy has seen substantial growth in Ireland's energy use over the last decade. While not rising as fast as economic output, it has pushed our greenhouse gas emissions well above the ceiling agreed under the Kyoto Protocol. Trends in transport, where CO2 emissions grew by 120% on 1990 levels, give the greatest cause for concern. Likewise, the disproportionately large contribution of emissions from pre-1979 housing is a significant issue to be tackled”.

He added, "While there is absolutely no room for complacency by any sector of Irish society, it is not all bad news. Among the positive trends highlighted by this report are the increasing efficiency of industry, the growth in wind energy’s contribution and the impact of improved energy efficiency in newly built housing. Going forward, the growth in energy demand must be stemmed through greater energy efficiency. Likewise, we should look to increase the proportion of that demand which is secured from renewable resources such as wind and solar energy. In the long term, this will pave the way towards more sustainable energy and a more sustainable approach to life”.

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For further information please contact:
Diarmuid O’Neill
Edelman
01-6789333 / 087-6699933

Editors Notes:
About Sustainable Energy Ireland:
Sustainable Energy Ireland (SEI), formerly the Irish Energy Centre, was established on May 1st 2002, as a statutory authority charged with promoting and assisting the development of sustainable energy. SEI is funded by the Irish Government under the National Development Plan 2000 – 2006 with programmes part-financed by the European Union.

About SEI's Energy Policy Statistical Support Unit
Sustainable Energy Ireland has a lead role in developing and maintaining comprehensive national and sectoral statistics for energy production, transformation and end use. This data is a vital input to meeting international reporting obligations, advising policy makers, and informing investment decisions. Based in Cork, the Energy Policy Statistical Support Unit  is SEI's specialist statistics team. Its core functions are to:

• collect, process and publish energy statistics to support policy analysis and development in line with national needs and international obligations
• conduct analyses of energy services sectors and sustainable energy options;
• contribute to the development and promulgation of appropriate sustainability indicators

About Energy in Ireland 2002 Report:
The Energy in Ireland 2002 report examines energy trends in Ireland since 1990, discusses the underlying causes and relates the trends to Government and EU targets in order to inform the development of the policies and measures employed to meet the targets. The year 1990 is significant as a baseline, not least because, under the Kyoto Protocol and associated EU targets, Ireland’s obligations to contain emissions of greenhouse gases, of which the bulk is CO2, derived from energy utilisation, are referenced against relevant emissions for that year.