Dr. Brian Motherway:

I thank members for their questions. Deputy Ann Phelan inquired about hydroelectricity and Spirit of Ireland. As far as I am aware, the latter is still developing. There are a number of similar concepts but, as far as I understand it, the Spirit of Ireland version involves building a number of wind turbines on artificial lakes and pumping energy uphill when the wind is blowing and then generating electricity by allowing it to flow back down again. Spirit of Ireland is considering this matter not only in the context of meeting Ireland's energy needs but also with regard to exporting to the UK market. There have been other developments in this space as well. A number of private companies are working on the idea of harvesting renewable energy in Ireland, not just to meet our needs but also in the context of exporting it to Britain.

This matter is also germane to the Deputy's question on the interconnector. She is entirely correct in referring to the need to have routes along which to export. In addition to the interconnector that was recently brought on line, we are probably going to need others to the UK and also to France. Some of these interconnectors might be developed by private operators, while others might be developed by the State. The future of electricity in Europe lies much more towards integration, both in terms of the market and also in the context of physical connection. This will suit Ireland because, ultimately, we will have a significant comparative advantage over most countries in Europe because it is less costly to generate renewable energy here. This is a result of the fact that Ireland is windier than most of its neighbours in Europe. We will, therefore, have an opportunity to sell power not just to the UK but also, in the longer term, to the remainder of Europe.

Quite a number of developments have taken place in respect of district heating in recent years, particularly at the tail end of the building boom. This involves the idea of putting in place a central large boiler which would pipe hot water and heat to a number of homes, businesses or offices. District heating usually makes the most economic sense when there is a mixture of domestic and commercial uses at play and, in particular, if a school, a swimming pool or whatever, can be included. There have been a number of developments along these lines. It also tends to be deployed quite a lot in apartment blocks, where the costs involved tend to be lower. For obvious reasons it has been employed much less in recent years. This is because district heating systems are much easier to fit into new builds than they are to retrofit because the latter involves digging up streets, etc. However, there continues to be activity in the sector.

We are of the view that Ireland could be a leading global player in the marine energy sector, particularly as it has a ready-made resource off its shores. Scotland and France are among our competitors in this area but we also work with them. Some of the technologies being deployed off France are made in County Louth by a company called OpenHydro. This company recently won a contract to deploy its devices off the coast of Northern Ireland, which speaks to the all-island question. While very much in its infancy - this is because the technologies involved are quite new - we are of the view that this sector has significant long-term potential, particularly in the context of the development of technologies, expertise and services here.