Ryan plans green tax breaks to fuel recovery

Sunday Times
November 16, 2008
The energy minister is planning measures to help the environment and boost the economy

Incentives to purchase electric cars and generous tax breaks to businesses producing their own electricity will form part of a Barack Obama-style green economic recovery package to be unveiled by the Irish government.
Eamon Ryan, the energy minister, has discussed plans with the cabinet to reduce Ireland’s €6 billion fuel import bill by 20% in 12 years. Between now and Christmas, Ryan will allow backyard electricity producers to sell surplus power to the national grid at a higher price than that paid to the ESB.
He will also announce tax write-offs for firms buying electric car fleets, and for those generating power on-site through wind or solar power, or through the use of biomass technology.
This week’s Finance Bill will also provide tax breaks to encourage firms to move to greener computer technology and more energy-efficient business equipment. A number of international suppliers of electric cars and associated battery services are understood to be awaiting Ryan’s announcement before moving into the Irish market. The minister introduced guaranteed prices for wind and solar energy earlier this year. “We can invest in renewable energy technologies and in retro-fitting buildings with energy-efficiency measures and enjoy the double benefit of reducing the amount we spend on energy and cutting down the import fuel bill,” said Ryan. “That would keep that money at home in the Irish economy.”
The Green party minister believes electric cars will become a significant component of the national transport fleet, with motorists plugging their car into their own wind turbine to recharge overnight, and perhaps selling surplus power from the generator to the national grid during the day when domestic demand is low.
“We are one of the most oil-dependent and fossil fuel-dependent countries in the world and we need to switch away from that,” the minister said.
“If we can do that in a way that helps our economy to recover and reduce our import spending, then there is a double benefit. Ultimately, I believe we can get that ¤6 billion figure for imported fossil fuels down to zero.” A radical sustainable-energy plan was a central plank in Obama’s successful presidential election platform.
He pledged to create 5m new jobs over 10 years by investing $150 billion (€118 billion) in the green-energy sector.
The proposal was branded “the Green New Deal” by US commentators, a reference to Franklin D Roosevelt’s) of oil a day “from some of the world’s most unstable nations”.
Ryan said a similar policy of import substitution using renewable energy can help Irish economic recovery. His officials have calculated that the bill for imported fuel in the first six months of 2008 was €2.96 billion and the total for the year would be at least €6 billion.
European Commission figures indicate that throughout the EU energy is imported at an average cost of €700 per person. But the fuel import bill per person in Ireland is €1,500, according to government calculations.