Fine Gael said today Ireland could generate 33 per cent of its electricity from renewable resources by 2025 if proposals in its new policy document on energy were implemented.
Speaking at the launch of Energy for the Future, Fine Gael leader Enda Kenny said that Ireland was facing a serious energy crisis but that the current government energy policy "was nonsensical and unsustainable".
The document, which was prepared by a sub-committee of the Fine Gael front-bench, proposes removing all excise duty on bio-fuel and providing seed capital funding for the establishment of bio-fuel processing plants. The proposals have been costed at €500 million over the next five years.
In order to stimulate demand for these products, Fine Gael would mandate that all motor fuels should continue a bio-fuel blend - initially 5 per cent for petrol and 2 per cent for diesel. This move would not require any modifications to existing vehicles.
If elected Fine Gael says all state-owned vehicles would be converted, "where practical and feasible", to run on vehicle.
To encourage the public to purchase fuel-efficient vehicles all new cars would be energy rated, as currently happens with domestic appliances, and less fuel-efficient cars would attract a higher rate of vehicle registration tax (VRT).
Fine Gael spokesperson on environment and local government, Fergus O'Dowd, said the current planning regime needs to be totally reformed if renewable sources such as wind power generation are to be built economically.
He proposed adopting the Dutch system whereby the government decides on a national basis what major infrastructure projects are needed and where they should be located. This ensures that local government does not resist locating major infrastructure in its area.
Despite the ambitious targets contained in the document, Fine Gael is not advocating the introduction of a carbon tax. Mr O'Dowd said that a carbon tax is a direct tax on energy use and would have to be balanced with a requirement to foster economic growth.