Mr. Michael Manley:

I will answer the question about the targets and Mr. Maughan will answer the question about the mitigation plan. Understandably, there is a big focus on the targets and the costs. There is always a focus on money. Essentially, the costs will be determined by how much we miss the targets by and how much it will cost to purchase statistical transfers. As I said at the outset, the renewable energy directive is not really a punitive instrument. It is designed to create a framework through which countries can develop renewable energies. In fact, it has five articles dealing with international trade and renewable energy through statistical transfers.

Statistical transfers through cross-border projects are important. Statistical transfers will be a system whereby those countries with a surplus will sell to those countries with a shortfall. We have been trying to get some sense of what that could mean. The Sustainable Energy Authority of Ireland, SEAI, did an analysis. It looked at a situation where we had to pay the cost of creating renewables in other countries. The figures were in a range of €65 million to €130 million for each percentage point. If a country misses a target by 3%, that would give a range of between €195 million to in excess of €400 million. There has been one trade so far. Luxembourg has done a trade with Latvia to make up its shortfall. If that sets a benchmark, then the total cost of 3% would be €60 million, which is €20 million per percentage point. Overall, the European Commission estimates that Europe will exceed the 20% target for 2020 and achieve 21%. In a normal market where supply exceeds demand, that impacts price. It is important that statistical transfers are not seen as a failure within the directive. They are seen as an instrument that a country can opt to use. It supports the energy union throughout Europe. It is not necessarily a preferred point of departure. A number of people have made a point about the new renewable electricity support scheme, RESS, and how we could play a role in accelerating its delivery and bringing forward solar, additional onshore or offshore wind energy, of which we are very cognisant. We aim to have the new RESS operational in 2019. There are a range of potential costs for statistical transfers but, right now, it is really difficult to put a precise number on where that will end.