Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

The graph shows that domestic electricity prices are lower in Ireland than the European average and that business prices are the same as the European average. I understand that was not the case a few years ago. The graphs set out the breakdown of the electricity prices. Is the fact that the cost of domestic electricity is lower in Ireland related to the wholesale price of electricity, or is it because of competition in the domestic market? How do we remain cost-competitive? The cost of energy is crucial in attracting inward investment, which leads to job creation.

There is a great deal of debate on whether our renewable energy strategy adds to the cost to the consumer. The debate on wind energy is topical and centres on carbon emissions, REFIT tariffs and PSO. Some groups are against wind farms and think it is not the best solution in terms of renewable energy. They see wind energy as a flawed system, but in lots of cases they would not want nuclear power. I was very interested to learn that the cost of using renewable energy in Ireland is less than in Europe. I presume that is because we have the resource of wind. Is the use of wind energy ramping up across Europe? Can the witnesses address the physical structure of the national grid? We have set a target of 40% for the use of renewable energy; is that reasonable, or we will we exceed our target? I would like to hear some objective comments on wind energy, including its impact on carbon emissions and whether other renewable options such as biomass compare favourably. People cite the work that goes into building a wind farm, although obviously the resource is free after that, depending on how much the wind blows.

Can we discuss smart grid technology, not just in respect of new transmission and distribution lines but in terms of expanding the capacity of the existing transmission lines? I understand that EirGrid has a few pilot projects, but it would seem that we encounter difficulties in building out the grid. I know that in County Mayo a number of projects have been given planning permission, but there is a problem with the grid connection. I am aware that Mayo Power Ltd. has a biomass plant in Killala and it is having problems with its connection to the grid. All the ground work has been done in getting the statutory permission.

I know that we need to build out the national grid. I wish to raise the contentious issue of Grid West. The driver for building out that grid is to capture the wind. Will the delegates comment on whether we will achieve our 2020 targets? A point made in the debate is that we are generating energy for export when we are not hitting our domestic targets and that the rate of installed capacity for wind energy is not the rate we would like to see. There is a debate on the use of DC or AC technology and whether we need to take out the wind as opposed to using it to meet the requirement of a business case that would need to connect into AC technology. The issue that members face is that pylons have been erected in environmentally sensitive areas, and in County Mayo the most windy areas are the areas that are picturesque and environmentally sensitive. I have attended a great many public meetings, and I know the Chairman, who lives in an environmentally sensitive area, has engaged with people as well, but at meetings I find the information has been lifted from the Internet. I would like to see the Commission for Energy Regulation address the issues so that we are discussing the facts. I believe all the facts have to be on the table to have a real debate. I believe that EirGrid gave information only on overhead power lines and we had no data. People came up with data on the logistics of underground power lines. An expert panel was established and I hope it will address all the issues so that we can see all the facts.

I would like to make a final point about the Corrib gas project. I know a question has been asked about security of supply in this context. I know the gas price that is set is not just an Irish price. It is a Europe-wide or international price. When we are giving out exploration licences, could we stipulate that a certain amount of the gas taken off a field where there has been a find would be supplied to the Irish nation at a price that is more favourable than the market price? Perhaps that is beyond what the market would allow. Could the Government do such a deal, or would that be prevented by regulation issues? Would the commission say "No, we cannot interfere with the market in that way"? This relates to the question of whether we are getting value for money in respect of our own natural resources.