M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome the opportunity to speak on this Private Members' motion. It is extraordinary to think that a little over seven months ago we were speaking in the House and wondering what we were going to do as the price of oil reached $147 per barrel. It is now hovering at around $40 per barrel. The public is not seeing energy cost savings as a consequence of that fall in oil prices. Even though the ESB is doing a fine job, we must see more interaction between electricity prices for consumers and the cost of the oil and gas the ESB uses.

Representatives of EirGrid recently appeared before the Joint Committee on Communications, Energy and Natural Resources. They are professional and forward thinking in their work to ensure security of supply for electricity consumers. If we are to continue to attract foreign direct investment, such potential investors need to be assured that they are dealing with professionals when it comes to electricity supply. That is important in order to continue to attract companies such as Intel, which are heavily dependent on a good supply of electricity from the ESB. If our economic recovery is to be addressed, we must have a competitive pricing structure for our energy costs. I am pleased to note the message from the ESB is that, as the Minister announced yesterday, there will be a significant decrease in electricity costs.

The ESB is examining the future of power generation in what is now a one-island electricity market. The current negotiations with planners and interested groups concerning a new interconnector with Northern Ireland are important. EirGrid will shortly be awarding contracts for a new east-west interconnector for us to link into the UK supply grid. We are currently producing just about the amount of electricity needed to meet demand, but hopefully in future electricity will become an import-export business. In that way, when demand is excessive here, we will be able to import electricity from Northern Ireland or Britain and vice versa.

Competition in the electricity market is important and I am pleased to note that new players are coming onto the scene here. Endesa has announced that it is investing €800 million in order to enter the Irish market. In addition, Bord Gáis, in conjunction with the ESB, is opening a new generating station in Cork.

The increase in the contribution of renewables is critically important and to this end the ESB is examining the area of wind power. I would like to see that sector being expanded. The company has good targets for wind power by 2020 and I wish it success in achieving them.

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