Mr. John Reilly:

To make a final point on the other technologies which we look at on an ongoing basis, the fact is that on a levelised cost basis, that is, when one looks at the cost of power produced from anaerobic digestion, for example, it is significantly higher than the cost of onshore wind. It is similar with geothermal and solar photovoltaic, PV. Germany was mentioned earlier. One of the reasons Germany is paying such large subsidies is that it has installed very significant levels of solar PV on its system. Onshore wind remains one of the most cost effective technologies and, in the Irish context, biomass, particularly when used on a co-fired basis with peat, because the stations are already there. That is the reason Bord na Móna's focus on renewable energy at present is primarily on onshore wind and biomass.

With regard to the undergrounding, it is to do with the design of the systems and the distances. The cabling that happens within a wind farm, the AC voltage cabling, and the distance one must travel there mean that one can, reasonably cost effectively, put those cables underground. It is similar with the AC network that will be used to link the farms to the central point. We are not travelling over very large distances. If one is travelling over very large distances, which will have to happen with Grid Link or Grid West, and moving high voltage electricity over distances, the cost of undergrounding that and the ability to underground it safely is very prohibitive. In our case, the distances being travelled are quite short so it is possible to underground the cables. That is the reason for our perspective on it. The other key issue is that Bord na Móna's land bank in the midlands is interlinked with the rail network. We can run the cables between the farms along that route or along that cable network.

On the issue of planning guidelines, we wish to make it clear that we believe a revision and assessment of the planning guidelines, as is being carried out at present, is appropriate. There was reference earlier to a wind farm in Offaly that was turned down by An Bord Pleanála because only the minimum guidelines were adhered to. From our perspective, on our Mount Lucas wind farm, the minimum setback we have from the nearest residence is over 680 metres. On the farm I referred to in Mayo, the minimum setback distance will be almost 1 km. That will be necessary to comply with the noise limits, which I believe is the most important issue.

With regard to the height of turbines, there comes a point where structures cannot and should not get any higher. The turbines we are installing on Mount Lucas are almost 160 m to the tip height and people should take a look at the structures. Many people in the midlands have commented to us, since the turbines started to go up since Christmas, that they are not as tall as they expected them to be. There has been so much talk about the heights of turbines. Nobody is saying they are not tall but, in general, people are satisfied they are appropriate for the large open landscapes in the midlands and that we can erect structures of this size or scale. Whatever the planning authorities decide and dictate, we have confidence in the planning system. Projects have been turned down due to the inappropriate siting of turbines and various types of developments. We will try to work with the planning authorities to ensure whatever we do is appropriate.

Deputy Stanley made a relevant point about local road upgrades. When one builds a wind farm like the Mount Lucas development in County Offaly, one has to agree a transport plan with the local authority, and that is right and proper. We had to give indications of the movement of goods and materials along the road and we had to upgrade the road to the required standard before we started to move the goods. For the Mount Lucas wind farm we invested more than €1 million in upgrading the local road network and 6.5 km of road network was upgraded, including the entire main street of the village of Daingean. The roads were upgraded to give them a 20-year life in order that the activity of transporting goods and materials during the project would not damage the roads. That is appropriate.

My final point is on the export piece and putting all our eggs in one basket. We have referred to the need for energy co-operation between member states, particularly small member states like Ireland that are not historically or traditionally resource rich. Today, to keep the lights on in this building, we must import almost 77% of the fuel required to do so, the majority of which comes from gas that is imported almost entirely on the back of the UK network and infrastructure of gas. If we did not have that option to support the Irish economy, we would be in a spot of bother. We believe in the principles of energy co-operation with our European neighbours because it will drive down costs and use resources across a wider power system. Interconnection and enhanced co-operation between member states, particularly neighbours, is the way forward in terms of our energy future. It will help to decarbonise our economies at the lowest cost to consumers.