1.1.1 The Alliance Party's energy policy aims to maximise energy efficiency and minimise consumption of non-renewable resources. Consumers of energy need to be more aware of the true economic and environmental costs of their consumption. Tax and subsidy regimes should be altered accordingly to better reflect the 'polluter pays' principle.

1.1.2 Alliance wholeheartedly endorses the development of an all-island energy network. North-South and East-West interconnection will enhance reliability, fuel diversity, and competition.

1.1.3 Domestic tariffs in Northern Ireland remain high, with consumers paying 23% more than in Great Britain. The privatisation of electricity in Northern Ireland led to longterm contracts that did not serve the consumer well. Future energy decisions must place consumer fairness at the forefront.

1.1.4 The Government's objective for the proportion of electricity generated from renewable sources is 12% by 2010.

1.1.5 Meanwhile, the scope of reducing energy use through improvements in energy efficiency and conservation is the single most important action to take, providing significant benefits.

2.1 DETI

2.1.1 In June 2004, the DETI published a consultation paper, "Energy: A Strategic Framework for Northern Ireland". The main objective is "to achieve a competitive, sustainable, reliable energy market at the minimum cost necessary in an all-island, UK and European context". Goals are to:

• Reduce energy costs relative to other UK/EU regions
• Build competitive energy market
• Enhance the sustainability of energy supply and consumption
• Maintain energy supply reliability

2.2 DRD

2.2.1 The Department of Regional Development has published a document, "Sustainable Development Strategy for Northern Ireland", which must be considered in conjunction with the DETI "Energy" document.

2.3 NI Assembly

2.3.1 On 5 March 2002, the Northern Ireland Assembly's Enterprise, Trade and Investment Committee produced an extensive report, "Inquiry into Energy".

2.4 UK Government

• UK White Paper ("Our Energy Future: Creating a Low Carbon Economy") (February 2003)
• GB Renewables Obligation (15% by 2015)
• Climate Change Levy

2.4.1 Climate Change Levy (CCL). The CCL is an environmental tax used to help the UK meet its legal obligation to reduce greenhouse gas emissions. The Government's goal is to reduce CO2 emissions by 20% by 2010. The CCL came into effect in April 2001. It is levied against industrial and commercial consumers and not domestic consumption. The standard rate charged for electricity generation is £0.0043 per kW hour.¹ Electricity derived from renewable sources is exempt from CCL.

2.5 European Union

• EU Directive 2003/54/EC & 2003/55/EC (Electricity and Gas)
• EU White Paper on Renewable Energy (November 1997)
• EU Green Paper on Sustainability (September 1999)

2.6 Kyoto Treaty

2.6.1 In 1997, the Kyoto Treaty was drafted in order to implement the United Nations Framework Convention for Climate Change. It legally obliges industrialised countries to reduce emissions of greenhouse gases by an average of 5.2% below their 1990 levels, over the next decade.

2.6.2 Countries are assigned "carbon credits", based on existing economic and environmental factors. These credits can be exchanged with other countries.

2.6.3 The Alliance Party is committed to implement the Kyoto Treaty in Northern Ireland.

3.1 Electricity generation

3.1.1 Traditionally, oil and coal were the main sources of energy generation in Northern Ireland. Gas is now becoming the primary source.

3.1.2 There is also a new generation of power stations. Ballylumford is Northern Ireland's first combined cycle gas turbine (CCGT) power station. It is owned by Premier Power, a subsidiary of BG. Ballylumford uses natural gas piped in from Scotland, and provides 50% of Northern Ireland's energy needs.

3.1.3 Coolkeeraghis another CCGT power station that has opened in 2005. This will use a new gas pipeline from Carrickfergus.

3.1.4 Kilroot power station burns coal 97% of the time; it can also burn oil. It is owned by AES, and provides 33% of Northern Ireland's energy needs.

3.1.5 A challenge that Kilroot faces is how to meet Government emissions targets, restricting the amount of 'greenhouse gases' power plants produce. The initial allowance for 2005-08 would reduce Kilroot's CO2 output to 74% that it usually produces. Either the allowance will need to increase or Kilroot will have to purchase the remainder (pollution allowance) from other power stations. At issue is who would ultimately pay to reach the quota: the consumer, Government, or AES shareholders?

3.2 Fuel diversity

3.2.1 Coal vs gas. One option would be for Kilroot to change to a gas-fired power station. This would mean that all three of Northern Ireland's power stations would be relying upon the same fuel. Kilroot converted from oil- to coal-burning as a result of the 1970s oil crisis.

3.2.2 Having multiple types of fuels - fuel diversity - provides a form of insurance from shocks in the fuel marketplace.

3.2.3 Alliance supports the retention of coal-firing facilities at Kilroot, in order to provide diversity and security of supply.

3.2.4 The high amount of sulphur dioxide that burning coal releases into the environment is required to be reduced by 2008. The reduction process is known as 'flue gas desulphurisation' or FGD. Again, at issue is who is to pay for the £35 million cost of FGD. Northern Ireland consumers would not react favourably to an even higher tariff than they pay now, particularly if it would mean widening further the gap with tariffs paid in Great Britain. Alliance will engage with AES and other stakeholders to address FGD at Kilroot power station.

3.2.5 Lignite. Lignite is another available fuel source, with an indigenous supply in Ballymoney. The Australian company, Ballymoney Power, has withdrawn planning applications, in part due to strong local opposition.

3.2.6 Lignite is, however, an inefficient fuel, having a higher carbon dioxide (CO2) emission than either oil, coal or gas.² There also remains a large potential of utilising existing renewable energy sources within Northern Ireland.

3.2.7 The mining for, and use of, lignite stands opposed to both Alliance's commitment to Kyoto and the Northern Ireland landscape and environment.

3.2.8 Alliance is completely opposed to the use of lignite as a fuel source.

3.2.9 Nuclear power. There are no plans to introduce nuclear power to Northern Ireland or the Republic of Ireland. However, the issue of nuclear waste and safety is relevant, through the operation of the Sellafield nuclear power station, located next to the Irish Sea.

3.2.10 On economic grounds, it is very expensive, as it requires high levels of capital investment. More importantly, there has yet been no satisfactory answer to issue of a safe and cost-effective method of storing highly radioactive waste products (which have self-decaying half-lives of thousands of years).

3.2.11 However, the application of nuclear fusion is an emerging technology that deserves further research and development.³

3.2.12 Alliance cannot endorse the use of nuclear fuel at present. Further developments in dealing with nuclear waste, as well as ensuring the highest standards of safety, are prerequisites. This does not preclude Alliance support for further research into nuclear technology.

3.3 Interconnection

3.3.1 Interconnection and the use of renewable sources of energy are also major factors in the consideration of fuel diversity.

3.3.2 The Moyle Interconnecter links Scotland with Northern Ireland, and provides the equivalent of an additional power station.

3.3.3 The North-South Interconnector has been of more benefit to the Republic of Ireland, as the flow of power has been from north to south. The relatively underdeveloped electricity grid in the greater Dublin area is a barrier to greater use of the North- South Interconnector.

3.3.4 The main interconnection between Louth, in the Republic of Ireland, and Tandgragee, in Northern Ireland, allows for the sharing of generator operating reserve between the two systems. If unavailable, each area would have to provide their own reserve.

3.3.5 It was proposed in November 2004 that a second North-South electricity interconnector be developed. The predicted impact of this would be an all-island energy market, providing both security of supply, reliability and reduced electricity cost.

3.3.6 While the creation of the stronger and more stable grid will enable more renewable generation, the impact upon scenery is predicted to include the construction of approximately 350 towers/structures. This, however, is in response to the fact that should cables be laid under agricultural land or cross-country, there would be a considerable impact upon the environment and agriculture, while permanent access would be needed for heavy machinery in order to address any faults.

3.4 Addressing Northern Ireland's gas supply

3.4.1 Alliance recognises that while oil prices and supply are threatened by instability within oil producing regions, the largest supplier of gas today is Russia. Similarly, should instability occur within this region too, the costs and supplies of gas will also be affected.

3.4.2 While at present self-sufficient in regards to sources of gas, the UK's economically appealing North Sea reserves are decreasing, and it is predicted that by 2010, the United Kingdom shall be importing almost 50% of its required gas - a figure set to rise in 2020 to 20%.⁴

3.4.3 In addressing Northern Ireland's gas supply, the Alliance Party seeks to not only ensure security of supply, but also a reduction in both its price and the impact of its use upon the environment.

3.4.4 Alliance, therefore, recognises the need to create diversity of supply.

3.4.5 One such region where gas supply is at present secure is Norway.

3.4.6 The current development of the 1200 kilometre long Langeled pipeline, from Norway to the UK via the North Sea bed, will allow for a total 100 billion cubic meters per year of gas to be exported. Such a supply, while predicted to account for a minimum 20% of UK gas, will also make Norway the second largest gas exporter after Russia, thereby reducing dependence upon a single power.⁵

3.4.7 However, Northern Ireland cannot rely solely upon the import of gas from other continents, but must itself look to domestic suppliers too.

3.4.8 For this reason, Alliance perceives the challenge as lying not only in the need to secure supply from other regions, but domestically the party seeks to promote a gas market that favors competition, while not hindering the development of Northern Ireland's fledgling gas industry.

3.4.9 To assist in the development of supply, the construction of a South-North (SN) gas pipeline has been proposed between the Irish gas transmission system at Gormanston, Co. Meath and the North West pipeline at Ballyalbanagh in Co. Antrim. The aimed completion date is October 2006.

3.4.10 Alliance supports the development of an all-Ireland energy gas project. Alliance calls for cross-party and government commitments, to ensure that such a project does not favor one side of the border over another. It is also necessary to ensure that all regions within Northern Ireland can access this energy supply.

3.5 Geo-thermal energy

3.5.1 Geo-thermal energy, extracted from the earth for heating and electricity generation from natural steam, hot water or hot dry rocks in the earths crust, is able to provide a consistent supply to the consumer any time and regardless of the weather or climate.

3.5.2 While there is uncertainty regarding the ability of Northern Ireland's resource being sufficient enough to drive commercial scale electricity generators, the region does have significant geothermal resources which can be exploited to heat homes, offices and large industrial and agricultural buildings through ground source heating pumps.⁶

3.5.3 While environmentally such a source of energy may reduce carbon dioxide through its displacing of fossil fuels,⁷ refrigerants such as hydrochlorocarbons (HCFC's) are present" within ground source heat pumps⁸ and are potentially toxic, flammable and can lead to increased global warming.⁹

3.5.4 Though evidently efficient in reducing carbon emissions and possibly assisting in addressing issues of fuel poverty, any use of geo-thermal energy would need to be reviewed in relation to its proposed long-term impact on the environment.

4.1.1 In September 2001, the EU Directive on the promotion of electricity produced from renewable sources came into force. The aim is to have 22% renewable-sourced energy by 2010. The United Kingdom implemented targets through a Renewable Obligations Order, which has a target of 12% renewable-sourced energy by 2010.

4.1.2 The DTI replaced the Non-Fossil Fuel Obligations (NFFO) with the Renewable Obligations (RO), and in 2002 adopted to:

• Allocate capital grants directly to bring forward the deployment of medium- and long-term technologies (£260 million)
• Work with the finance community and the European Investment Bank to facilitate the switch from the NFFO to RO
• Make it easier for the industry to access government support for Renewable Energy Technologies (RETs) and other sources of project funding
• Explore further new revenues for UK industry to make the most of opportunities for developing RETs that the RO provide
• Invest in better planning for RETs and specifically, to encourage biomass projects and research with £66 million, from the DTI and the new opportunities Fund, and the Departments Sustainable Energy Programme.

4.1.3 The NI renewables obligation is to have 6.4% of total energy generated from renewable sources by 2012. The renewables target is 12% by 2012.

4.2 ROCs

4.2.1 The Renewables Obligations Order creates a market of "tradable green certificates", also referred to as Renewables Obligation Certificates (ROCs). ROCs will have to be produced by every energy supplier, proving that a set percentage of their electricity generation has come from renewable sources. This percentage started at 3% for 2002- 03, and rises incrementally to 10.4% for 2010-11.

4.2.2 The Government's objective for the proportion of electricity generated from renewable sources is 12% by 2010.

4.2.3 Alliance would extend the renewable sources of electricity objective to 20% by 2020, and 50% by 2050. However, for this to be realised, the operation of the renewables market needs to be re-examined (see below).

4.2.4 Suppliers can meet their obligation three ways:

• Producing ROCs showing that they have generated or bought renewablesourced electricity from others
• Buying ROCs on the open market from other suppliers with a surplus to sell
• Paying the 'buyout price' of 3p per unit (kWh)

4.2.5 The theory is that as the price of ROCs rise, more renewable-sourced energy suppliers will enter the market, thus encouraging competition.

4.2.6 However, ROCs provide only one of a number of financial signals for producing renewables. Technological, regulatory and planning issues will also affect the real supply of ROCs:

• Technical and institutional problems constrain renewable sources to electricity networks
• Regulation of the operation of the wholesale market can favour incumbent fossil-fuel generators over renewable generators
• The planning process itself, as well as opposition to particular projects, provide a barrier to new renewables projects, especially wind power

4.2.7 A more fundamental challenge is that a target beyond 10-12% of renewable-sourced energy will require significant innovation in our electricity supply systems.¹⁰ The Renewables Obligation does not distinguish between renewables technologies: all must compete against the renewable energy market leader (i.e. wind power, at present). Such a single market curtails the development of more expensive yet promising next generation technologies.

4.2.8 While Alliance welcomes the introduction of ROCs to stimulate the market for renewable-sourced energy, Government must remain committed to pursuing a variety of renewable energy sources.

4.2.9 Private finance has funded renewable technologies, such as landfill gas and onshore wind.¹¹ This has nearly created a competitive market with other energy generators, which could bring further development of these particular technologies without government funding.

4.2.10 However, the limited focus by private financiers means that the development of other renewable technologies is hindered by the need to overcome adequate finance, securing sufficient fuel supply bases, and the risk of being an unproven technology.¹²

4.2.11 Alliance calls upon Government to provide as much capital grants to less developed renewable technologies (e.g. tidal stream power and photovoltaic (solar panel) power), as to the more established technologies (e.g. wind and biomass). While some projects will prove commercially unviable, the endeavour will encourage innovation and ultimately offer investors higher returns for the greater risks involved. Here, Government also needs to provide support for market formation activities.

4.2.12 Just as it is important to have a fuel diversification policy for non-renewable sources - gas, coal, oil - it is important to have a range of well-developed renewables technologies. The operation of the renewables market requires a serious reexamination, if it is to be a fair playing field and encourage further development.

4.3 NI renewable energy sources

4.3.1 Feasible renewable energy resource for Northern Ireland is:

4.3.2 This is further broken down by type of renewable source:

4.3.3 Renewable energy sources enhance security of supply, reduce medium- to long-term energy costs, significantly reduce CO2 emissions, are pollution-free and provide employment (including rural diversification).

4.3.4 Renewable energy sources include: biogas, biomass, hydro, solar, tidal and wind.

4.3.5 There are advantages and disadvantages to each form of renewable energy source.

4.4 Biogas

4.4.1 Landfill gas is a methane-rich biogas, which is formed from the decomposition of organic material in a landfill. The gas is drawn from the landfill site through a network of pipes, and cleaned before being supplied to an engine or gas turbine. It has been a commercially viable process since 1984.

4.4.2 A 200,000 tonnes per annum waste deposit is the minimum for viability, and requires the landfill site to be lined and capped, in order to collect the methane gas.

4.4.3 While landfill gas-derived electricity has developed since the mid-1990s, a recent EU directive has been announced, which effectively prevents the depositing of the biodegradable waste, after 2015.¹³ Such a directive may therefore prevent the development and sources of landfill gas.

4.4.4 Therefore, there exists the need to increase the use of biogas plants from other sources, such as organic waste and domestic slurry.

4.4.5 Germany is seeing a growth of biogas plants on farms, with policy being developed that offers a good and guaranteed price for the power generated for the next 20 years. Such biogas digesters are eligible for grants that cover 30% of the costs.¹⁴

4.5 Energy Crops

4.5.1 While beneficial to the achievement of reducing CO2 emissions, energy crops can also play a key part in addressing the downturn within Northern Ireland agriculture.¹⁵

4.5.2 Biomass includes poultry litter, willows, and wood and straw.

4.5.3 Poultry litter is the wood shavings, straw and droppings used by farming industry as a fertiliser. The technology for generating power from poultry litter has been commercially proven in the UK, with three plants 10-38 MW.

4.5.4 For use in energy generation, a figure of 1.4 tonnes of litter output per 1,000 birds is used, With 85 million broiler chickens reared in Northern Ireland every year, this gives an output of 120,000 tonnes per year of poultry litter. Less the amount demanded by the farming and mushroom industry, around 55,000 tonnes per year would support an installed capacity of 5.5 MW.

4.5.5 Willow is an energy crop that grows on a 2-4 year cycle. A good example of this application is at the Brook Hall Estate, Co. Londonderry, by Rural Generation Limited, established by John Gilliland.¹⁶

4.5.6 One significant proposal is to add a proportion of willow to the coal burned at the Kilroot power station. This would reduce the amount of coal burned, and thus CO2, while achieving 25% of the renewables obligation in Northern Ireland.

4.5.7 Alliance supports the proposal for Kilroot to mix biomass in its coal-burning plant, to achieve renewables obligations and develop the renewable energy market in Northern Ireland.

4.5.8 An important consideration in the use of willows is the distance travelled from source to plant. As willow is a low-density material, it is relatively costly to transport. The estimate is that is economically viable to transport between 7-10 km.

4.5.9 Wood. Only half of the volume of logs processed at sawmills ends up as saleable timber. The rest ends up as bark, wood chips and sawdust. Some of this by-product is used for additional wood products, such as particleboard or MDF.

4.5.10 A relative advantage of wood pellets is that they have a high energy density, making them easy and economical to transport. They can also be used in a range of heating installations, from domestic boilers to large heating plants.

4.5.11 In 2002, it was estimated that 1kWh of electricity from woody biomass will produce CO2 emissions of 60-75 grams compared with figures of 409-510 gms and 964-1287 gms of CO2 emissions for electricity from natural gas and coal, respectively.¹⁷

4.5.12 In the United Kingdom, Siviculture¹⁸ for energy is making headway through companies such as Econergy, which are developing a network of growers of wood-fuel across the UK, with mobile wood-chippers and robust long-term contracts for supplies. Such network operators effectively come between the growers and the plants and can build up reserves to handle fluctuations in the market.¹⁹

4.5.13 In an attempt to build up and secure energy supplies within Northern Ireland, there is the need to discuss and develop with Northern Ireland forestry groups the potential of establishing similar wood-fuel sources and networks.

4.5.14 Straw is a high volume/low-value by-product compared with grain/seed, the bulk of which is generally worked back into the soil. However, given the right price support, straw is also being used for electricity production.²⁰

4.5.15 Generating electricity from straw is a proven technology. However, there is small excess amount of this resource available in Northern Ireland, as much of it is used for animal bedding, mushroom composting and poultry bedding. It is technically possible to mix straw with coal, as in the case of willows.

4.5.16 It is possible to use surplus straw as fuel source. For example, a plant in Cambridgeshire burns 200,000 tonnes per year, which represents only 2% of the UK's surplus straw.

4.5.17 It was highlighted in Scotland that "the logistics of supply also constrain development, with straw for a power station needing to be sourced from within a 50 mile radius of the plant (and preferably as near as possible) to avoid excessive transport costs.²¹

4.5.18 Currently within the whole of the UK, there exists minimal energy crop production, with such crops as short-rotation coppice (SRC) and miscanthus grass occupying less than 0.06% of UK's 2.4 million ha crops and short-term grass.²²

4.5.19 However, underpinning the future potential for energy crops is 500,000 ha of 'setaside' agricultural land that has been taken out of food production and is currently idle.²³

4.5.20 In addition, there also remains the possibility of converting to energy crops the land that is currently growing 3 million t/yr of wheat, which is surplus to the food needs of the UK and is being exported.²⁴

4.5.21 Northern Ireland is uniquely placed to benefit from UK attempts to meet Kyoto obligations. Our climate is ideal for the growing of willows and other SRC crops. These can be used to produce both and electricity generation in a carbon-neutral way.

4.5.22 Biofuels present a major opportunity for large-scale alternate crops for local farmers.²⁵

4.5.23 In being biodegradable, renewable and producing less air pollutants than fossil fuels when burnt, biofuels are of great environmental benefit.

4.5.24 The two main forms of bio-fuel presently being discussed by the UK Government are bio-diesel and ethanol. While the former may be developed through chemically converting renewable resources such as vegetable oils and recycled restaurant oils, the latter may be produced through the fermentation of sugar or starch from such crops as wheat, potatoes, beet, or fruit and vegetable waste.

4.5.25 In Europe, the leading raw material for the production of biodiesel is oilseed rape (OSR), and winter wheat for bioethanol.

4.5.26 While bio-diesel can be used as a replacement to traditional diesel, the negative impact is that the fuel requirement is higher and the current costs of production are, at present, uneconomical.²⁶

4.5.27 However, in recognising not only the environmental benefits resulting from the use of bio-fuels, but both the negative impact today's vehicles have upon the atmosphere and the EU Directive on Promotion of Biofuels for Transport,²⁷ the Alliance Party recognises the need to promote the development, and use of bio-fuel within transport vehicles.

4.5.28 Alliance would provide Government support for the development of bio-fuel, via fuel duty and/or other forms of capital support. The retail price of bio-fuel needs to be as competitive with that of gasoline.²⁸

4.5.29 Alliance additionally recognises the valuable opportunity growing energy crops for bio-fuel can have in generating both additional income, and security of demand for the rural economy.

4.5.30 Alliance therefore seeks to ensure that the UK Government commits itself to the development of a renewable energy policy, a policy that contains an approach to developing a sustainable biofuels sector.

4.5.31 Alliance, in seeking this commitment, is supportive towards the potential forging of links between DARD and the National Non-Food Crops Centre in York. It is hoped such a link will focus upon the development of an industrial supply chain of sustainable raw materials and thus, it is hoped, assist in creating security of demand and as an effect assist in the production of supply.

4.5.32 Alliance will encourage farmers to develop surplus or idle land for the production of energy crops.

4.5.33 Recent CAP reforms may assist in this conversion. For example, in 2005 the Forum for Renewable Energy report, 'Promoting and Accelerating the Market Penetration of Biomass Technology in Scotland' stated:

• "CAP Reforms with the decoupling of subsidies and the introduction of the single farm payment (SFP) from 1st January 2005 will allow farmers more flexibility and arguably free up land for alternative uses. For many farm businesses, traditional farm production will be unprofitable without subsidy support. Therefore many farmers will either have to radically restructure their business, use their SFP to support their operations, or look for viable alternatives. The renewable energy industry is still in its infancy; however, if viable renewable energy markets emerge, the agricultural sector is likely to be quick to respond to any commercial opportunity."²⁹
• CAP reform "will lead to changes in existing payments to the agricultural sector. Current interpretation suggests that on set-aside land, while no additional payment will be offered, there will be no penalty to current set-aside support payments or to future set-aside entitlement payments - if land is used for the purpose of growing energy crops. On other land eligible for support, growers will be eligible for 45 Euros per hectare support payment for energy crops up to a limit of 1.5million hectares at an EU level, after which there will be a scale back."³⁰

4.5.34 Alliance would initiate and adopt a review and promotion of the efficient use of existing sources of energy crops.

4.5.35 To address the minimal use of farmland in the production of energy saving crops Alliance envision the need to review and address the format of informing farmers of the potential opportunities found within energy crop production.

4.5.36 The EU's CAP increasingly offers support for projects which support environmental concerns rather than production and with enlargement comes increased agricultural areas and labour support - thus possibly posing a threat to domestic agricultural support.

4.5.37 Today in Wales there is the suggestion that the willingness of local farmers to begin SRC production may well depend upon the promotion of the energy crop via an information campaign.

4.5.38 The view presented by a recent Welsh study³¹ suggested that the current attitudes of Welsh farmers may change rapidly in response to:

• The on-going dissemination of information, e.g. through promotional events, literature and articles in the farming press
• The provision of advice and practical assistance with conversion to SRC, e.g. the establishment of agencies to manage the production and marketing of SRC on behalf of farmers
• The provision of subsidy payments towards establishment costs
• A clear indication of the likely returns in relation to existing enterprise and an assessment of the risks and how they will be tackled

4.5.39 However, the growth in energy crop supply chains will be dependent upon the growth in energy industry demand. This growth can only occur through the promotion and development of bio-fuel projects.

4.6 Hydro

4.6.1 Hydropower is generated from the energy of flowing water. Its output depends upon the vertical distance of water intake and outlet, and the volume of flow. Environmental constraints have prevented the development of large-scale hydro projects in Northern Ireland. County Antrim has the most potential by far, of 22.8 GWh/yr.

4.7 Solar (Photovoltaic and passive solar power)

4.7.1 Although the relative lack of daylight (in contrast to sunshine) prevents solar energy from being a significant primary energy source, it has been developed well enough to provide energy to provide home and water heating.

4.7.2 Photovoltaic (PV) cell panelling could provide AC current power in a commercial property at a commercially viable level by 2020, and domestic dwellings by 2050.

4.7.3 However, passive solar power is a feasible alternative for regulating heating, cooling and lighting in all buildings. This includes heating water, which is the main factor in primary energy use. The use of passive solar power is a direct substitute for the consumption of conventional fossil fuels.

4.7.4 At present a fully installed solar water heating (SWH) system may cost around £3,000, yet it is predicted that households may save between £30 and £150 per year on fuel costs.

4.7.5 As fuel costs rise so too may this saving, thus aiding in the fight against fuel poverty.

4.7.6 As a result of higher temperatures within southern Europe, the length of time over which heating is required is relatively short. However, a longer operating season in less climatically favourable regions could ensure an installed solar space heating system is, over the long term, more economically beneficial.³²

4.7.7 Solar water heating systems use a roof-mounted solar panel to collect solar radiation. A relatively low heat (100 degrees Celsius) is used to heat water. Solar water heating (SWH) systems are generally integrated with existing water heating systems ensuring hot water is available all year round.³³ The design of solar houses should allow for minimal heat loss in winter, while maximizing the heat gains and ensuring comfort during summer months.

4.7.8 While taking account for shading and sheltering of solar panels, the optimal orientation for SWH systems is due south, though SWH is able to work between southeast and southwest. Almost 50% of current properties have the correct orientation to the sun, and if adopted SWH systems would be able to address around half of Northern Ireland's domestic hot water needs.

4.7.9 While many houses may not have SWH at present, grants are available to assist in the use of such heating systems,³⁴ though it is more cost effective to install the panels during initial building or roof repairs.

4.7.10 Alliance favours the promotion of solar water heating in all new homes. This reflects our commitment to energy efficiency and combating fuel poverty.

4.7.11 Economically, solar energy can positively impact upon the local economy as, depending upon the commercial arrangement between the solar companies and the utility, a majority of costs could be managed locally. For example, while jobs will be created for the equipment, installers on local buildings and homes, there may also develop local production of solar cells,³⁵ as is currently occurring within Bangor.

4.8 Tidal

4.8.1 Tidal power is in two forms: wave and currents. Tidal wave power is the capture of energy of water flowing through barrages powering turbines. Tidal stream power is the where turbines are driven by tidal streams (i.e. the tides themselves).

4.8.2 Tidal wave power is far less reliable than tidal current power. Additionally, it is unlikely that environmental constraints could be overcome.

4.8.3 Tidal stream power, on the other hand, is a feasible option. There is an advanced trial underway, operating off the coast of Devon, with the potential to produce 4-5 MW of power. Another scheme operating off the Shetland Islands has the potential for 5-10 MW to be online in 2005-06.

4.8.4 There are proposals for 3 marine current turbines in Northern Ireland: Rathlin Sound, the Copeland Islands, and the mouth of Strangford Lough. Indeed, the last location is in an advanced stage of progress, with a 1 MW approved pilot scheme. The 3 sites could produce up to 100 MW of energy by 2010.

4.9 Wind (offshore and onshore)

4.9.1 Wind power provides 3% of Northern Ireland's energy needs. The potential contribution of wind power is theoretically high. However, the lack of a constant or predictable supply limits this, and introduces its own additional costs.

4.9.2 In 1999, DETI published a report³⁶ that assessed the offshore wind power resource in Northern Ireland. The feasibility of offshore wind is based on an installation of 3 MW wind turbines at 500m spacing (4 turbines per square km), and 50m hub height. This equates to a production of 15,000 MW for mean annual wind speeds of 7m/s.

4.9.3 In 2002, PB Power published a report³⁷ that identified the potential for onshore wind power in Northern Ireland. The figure of 564 MW with 1,880 GW/yr energy generation is based on 30-40 sites that are more likely to achieve final planning approval, out of an original estimate 378 feasible sites.

4.10 Securing the supply of renewable energy

4.10.1 In order to rapidly satisfy Kyoto requirements and ensure the increase in renewable energy fuel sources occurs, Alliance perceives the starting point in the production of supply as being in the creation of security for demand.

4.10.2 Alliance therefore, while welcoming the reforms outlined above, also seeks to ensure the stimulation of fuel supply and renewable production via the increase in technological production.

4.10.3 In 2001, the greatest hindrance to the development of biomass NFFO contracts was the status of technology, especially for gasification and pyrolysis. For example:

• The privatised electricity industry operating under NETA was exceedingly competitive and therefore sensitive to cost and reliability. Only the most viable RETs made it into the supply mix. Such action favoured wind over biomass and solar in the short run.
• There has been very little success in developing an industry for core technology equipment. The reasons for this may include the small size of the domestic market and technical difficulties (for biomass).³⁸

4.10.4 Currently, the newer biomass technologies are relatively unproven worldwide, and not a problem exclusive to the UK. Therefore, if the UK wished to establish a worldclass renewable technology, biomass gasification and/or pyrolysis is one field in which this would still be possible, with sufficient stimulus.³⁹

4.10.5 Alliance calls for further funding and attention to go into the development and optimisation of all aspects of biomass technology, in order for the fuel supply chain and conversion technology to become competitive in the medium to long term.

4.10.6 Such support will include the need to address the developments in fuel reception, fuel preparation, combustion, gasification and pyrolysis.⁴⁰

4.10.7 Attempts to create fuel demands and ensure Kyoto obligations are fulfilled can be developed through reforming how energy is produced. One example would be to increase local and community plants that generate both heat and electricity.

4.10.8 Alliance supports the creation of tailor made local schemes to ensure the generation of heat/hot water. ⁴¹ This can be achieved more rapidly than large-scale power generation schemes, due to lower levels of complexities.

4.10.9 To service more small-scale distributed electricity generators, nationwide and local electricity grids will need to be restructured.⁴² This could be achieved through partnership and devolved administrations, regions, local government and business.⁴³

4.10.10 While the public are, at least in principle, supportive of the move towards RETs, almost 30% of such projects fail at the devolved planning consent stage due, at times, as a result of local level concerns to the loss of amenity and property value.⁴⁴ In order to promote and develop the production of renewable energy sources and technologies, there is the need to push for the increased promotion of renewable energy sources and its potential benefits.

4.10.11 Alliance supports the establishment of local energy agencies and their work in developing the more sustainable use and production of energy. This includes the use of renewable energy, and can address the difficulties of obtaining planning permission of RET projects.

4.11 Eco Energy

4.11.1 The Renewables Obligation for Northern Ireland will legally oblige electricity supply companies to obtain a proportion of their electricity from renewable sources (see ROCs, above). NIE already offers a renewable energy tariff, Eco Energy, whereby the electricity supplied to a domestic dwelling is 100% derived from renewable sources. This tariff costs the consumer exactly the same as the normal domestic tariff. (One can sign up to the Eco Energy tariff via the NIE website (www.nie.co.uk) or phone (0845-7455455).)

4.11.2 Northern Ireland businesses can purchase electricity derived from renewable sources from: Airtricity, Energia, and ESB Independent Energy. Airtricity electricity is derived exclusively from wind power. Energia supply renewable-sourced electricity to all primary and secondary schools within the Education and Library Boards (100% renewable-sourced), Belfast City Hall (100%) and NI Government buildings (20%).

4.11.3 The Alliance Party's headquarter office is a subscriber to renewable-sourced electricity.

4.11.4 Alliance calls for all District Councils to have 100% renewable-sourced electricity by 2010.

4.11.5 Alliance calls for all NI Government buildings to receive at least 50% of their electricity from renewable sources by 2010.

4.12 Conservation and efficiency

4.12.1 The most significant and direct measure to reducing the demand for energy and the burning of fossil fuels is to cut back on consumption, by both domestic and industrial users (see www.saveenergy.co.uk/homebuyers). Efficiency measures bring financial savings and reductions in CO2 emissions, while providing the same level of utility and comfort.

4.12.2 Domestic energy savings measures include:

• Sign up to a renewable energy tariff (see Eco Energy above)
• Purchase 'A' rated energy efficiency white goods (fridges, freezers, washing machines and dishwashers), which will give considerable savings on running costs than less efficient 'G'-rated products
• Use long-life energy saver light bulbs, which will save 15 ordinary bulbs and last for 12 years
• Choose a high efficiency condensing boiler; install cavity wall insulation; use double glazing; insulate hot water tank
• Ensuring TVs, video and DVD players are not left on standby
• Reducing your thermostat by 1 degree Celsius saves 10 per cent on heating bill
• Wash only full loads of clothes washing at lower temperature of 40 degrees Celsius
• Regularly defrost your freezer, and keep it packed full, even with scrunched up paper
• Set water thermostat at 60 degrees Celsius
• Open internal doors to let sunshine in allow warm air to travel through the house; but close curtains after dark to curtail heat escape

4.12.3 Larger businesses have installed their own generating power, which provides both backup power and energy cost savings. For example, the Royal Group of Hospitals has an onsite facility of 4.5 MW of power, and the Radisson SAS (Belfast) has a 110 kW natural gas powered CHP unit.

4.12.4 Offices can also take similar measures as domestic customers, e.g. ensuring that computers, monitors and photocopiers are switched off our of office hours.

4.12.5 New buildings will need to meet higher energy efficiency standards, as a result of the European Union Directive on the Energy Performance of Buildings (2002/91). This has particular relevance to new houses. The Department of Finance and Personnel are undertaking a review of the Northern Ireland Building Regulations that will set the new energy efficiency standards for new buildings and those that are substantially renovated.

4.12.6 Alliance would require all commercial buildings to receive 20% of electricity from renewable sources. This can be achieved by using an energy supplier that uses renewable sources, and/or by using renewable technologies on the commercial dwelling site, e.g. solar heating and wind energy.

4.12.7 Alliance welcomes the announcement that DSD will bring forward legislation to require home sellers and landlords to produce energy certificates at the point of sale or letter, which will help buyers and tenants make better-informed decisions about their home or dwelling. This consumer benefit satisfies an Alliance Party manifesto pledge for the 2003 NI Assembly elections.

4.12.8 Alliance would require private sector landlords to provide energy efficient housing to their tenants. We would also secure protection of private sector tenants from eviction as a consequence of demanding such improvements.

5.1 Tariffs

5.1.1 Tariffs for Northern Ireland consumers have remained high, 25% more than in Great Britain, even with reductions in NIE transmission and distribution charges. A problem is the relatively higher cost of electricity generation.

5.1.2 Larger businesses, such as heavy industries and factories, can shop around for their electricity supplier, but still not to the degree as businesses in Great Britain can. Also, unlike the situation in Great Britain, domestic customers in Northern Ireland have no choice of their electricity supplier.