Jimmy Deenihan (Kerry North, Fine Gael)

Like previous speakers I welcome this Bill and I am delighted to have the opportunity to make some points on the subject of energy. I welcome the main provisions of the Bill — to expand the functions of the Commission for Energy Regulation and to underpin its work on an all-Ireland energy market. There should be far more co-operation between both sides of this island and most of our policies should operate on a 32-county basis.

I also welcome the provision allowing emergency measures to be taken by ministerial order in the event of a sudden crisis in the energy market and the creation of an open gas market.

I will reflect on a number of issues. First, the Fine Gael energy policy is set out in a national plan for alternative energy in the future. It was criticised by a number of people, including the Minister. Sometimes we are criticised when we do not bring forward a policy. Then when we do the policy is criticised. As somebody who has a deep interest in energy policy I have not seen many policies brought forward by parties in the past, apart from the Green Party, but the Fine Gael policy was comprehensive. Just because we are in Opposition we do not agree with everything the other Opposition parties bring forward. However, we recognise good elements that deserve to be adopted if they can be of use.

The policy on biofuels should be taken seriously. With the diminishing role of agriculture and farmers leaving the land there is a major role for biofuels. For the first time the IFA is taking biofuels very seriously. The fact it meets with the Green Party on a regular basis to discuss energy policies reflects a major change in attitude on the part of the IFA toward that party. It is a new era and the proposals for biofuels in the Fine Gael policy warrant fair consideration.

It also deals with energy in the home. Solar energy is not considered to the extent it should be in this country. My home town football club in Kerry decided to install solar panels to heat the water in the dressing room and they work very well. I am encouraged that a number of other clubs in Kerry have contacted me to find out how they work and how effective they are. I recently asked the Minister to include in the capital development programme for national lottery funding a provision for the installation of solar panels, as well as dressing rooms, lighting, pitch renewal etc. Because of the cost and our huge dependence on oil and the general cost of electricity, solar panels have the potential to reduce clubs' energy bills. Perhaps the Minister will take the matter up with the Minister for Arts, Sport and Tourism with a view to securing grant aid for that purpose. Fine Gael proposes a number of grant incentives for people to install solar panels in houses.

The use of turbines for domestic energy needs is a practical way forward but there is a problem obtaining planning permission. Recently a person from Holland, where they have wind turbines everywhere and make effective use of them, inquired as to the possibility of a wind turbine to meet his energy requirements. When I inquired of Kerry County Council, the planning section did not give an enthusiastic response, despite the fact it has a positive wind policy. County Kerry designated preferred areas for wind turbines before any other area. I was taken aback by that response and, as a result of that policy, very few houses in the whole of County Kerry use wind energy.

The wind industry in Europe is currently worth approximately €30 billion and produces over 30,000 MW of power. Ireland is one of Europe's windiest countries but our wind resources remain largely untapped, and are likely to remain so in the future. The wind resource in Ireland is the envy of Europe. Earlier speakers mentioned what has been done in Spain. If any Member visited the Canaries he or she would see wind turbines on all the islands. Even now they are locating them on the hills, having previously had an embargo in that regard. We have never grasped the advantage we have with our wind energy, nor capitalised on favourable wind speeds, as they have done in other European countries. One of the reasons for that is that we are still very dependent on coal and oil which are, in a sense, the easy options. Also, because we cannot store energy we cannot make use of surplus energy, which is why the interconnector is so important. What is the current position regarding the interconnector? Unless an interconnector is provided, Ireland will never be fully able to capitalise on its wind energy resource.

I recently learned of a practical problem facing people involved in providing wind farms. The case in question concerned three farmers who propose to move into wind energy generation to earn additional income, as farmers are being encouraged to do. However, this is proving a difficult process. Having received planning permission and secured connection to the grid, which is fortunately close to them, the farmers in question are faced with the prospect of waiting for two years for the turbines to arrive. This is the waiting period for delivery of a turbine once an order has been placed, a long time given that technology and circumstances can change in the meantime. As the Minister is aware, an average turbine, which produces approximately 2.3 MW of electricity, costs roughly €1.8 million. This is a major investment particularly as one quarter of the cost must be paid up-front and no income is generated for two years.

Demand for turbines, which are manufactured in Germany and the Netherlands, is especially strong in the United States where all types of turbine are permitted. In Ireland, however, the rules appear to be more demanding in that only one turbine — a more sophisticated model — is compatible with the national grid. Has consideration been given to manufacturing turbines here to avoid the lengthy wait for delivery? Given that most products can be manufactured in Ireland and this country has a technological edge and several other advantages, we should be able to manufacture turbines. This question may not be directly related to the provisions of the Bill but Second Stage debate usually affords Deputies an opportunity to raise a wide range of issues. I ask the Minister to comment.

As regards wind energy, I understand planning permission has been given for facilities that would produce approximately 4,000 MW of electricity and average daily requirement for wind energy is approximately 4,000 MW. Is it the case that any farmer, company or other individual or entity who decides to enter the wind energy market will not be permitted to develop a project until 2013 because the grid will not accept further wind energy resources until that year? How does the Minister, who will probably be replaced in his portfolio within a year, possibly by Deputy Durkan, expect the wind energy market to develop?

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