Leo Varadkar (Dublin West, Fine Gael)
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Question 8: To ask the Minister for Communications, Energy and Natural Resources how much of the White Paper on Energy Policy has been implemented; and if he will make a statement on the matter. [23118/07]

Eamon Ryan (Dublin South, Green Party)
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The energy White Paper was published on 12 March 2007. It sets out a comprehensive range of policy actions designed to deliver on our strategic goals for security of supply, sustainability and competitiveness over the period to 2020. There is no doubt that we need to make fundamental changes to the way we provide and use energy. Ireland's sustainable energy future depends on it. The programme for Government endorses the White Paper and underlines the imperative to secure long-term energy security and a low carbon future for Ireland. The urgent and massive challenge of climate change underscores this imperative.

The many policy actions in the energy White Paper have different timelines. The short-term actions are under way. Others have longer time horizons with work starting now. As the Minister responsible for energy, my clear objective is accelerated, intensified delivery on all fronts, reflecting the challenges we face. To achieve a secure, sustainable energy future for Ireland we need collective delivery across all the priority areas.

I will outline some of the key priority areas and associated progress. The single electricity market is on schedule to go live on 1 November. The energy efficiency action plan has been launched for consultation and will be finalised before the end of this year.

The east-west and north-south electricity interconnectors are proceeding according to schedule, with a view to delivery by 2012 or sooner if possible. We are giving priority to accelerated delivery of our renewable energy targets for electricity and heating by addressing barriers and ensuring positive signals to the market. We are putting in place measures to support the potential of Ocean Energy as a key opportunity for Ireland.

The all-island grid study is nearing completion and will provide critical underpinning for future development of the grid in support of renewable energy. We are expediting the programme of roll-out over time, of the installation of smart meters in every home through the Commission for Energy Regulation, ESB Networks and Sustainable Energy Ireland.

The policy actions under way and planned in the White Paper, together with the additional commitments in the programme for Government, will result in a transformed landscape for the Irish energy sector. I am committed to working in partnership with my Government colleagues and with all stakeholders to deliver that change. The challenges of security of supply and climate change have created a new energy paradigm for Ireland for Europe and globally. My objective is to meet the challenge of being ahead rather than behind in energy policy terms in addressing that new framework.

Simon Coveney (Cork South Central, Fine Gael)
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I concede the question was so general that I did not expect precise answers. May I probe the Minister on one or two specifics; first, how does he intend to handle the separation of the ESB and Eirgrid? In essence what he is proposing is to take the transition system which is made up of 6,600 km valued at €840 million away from the ESB balance sheet and any ESB maintenance work and so on and put it under the direct responsibility of Eirgrid to manage it as a State asset. The principle of that is one with which I agree but there are some significant hurdles to be got over to achieve it. My understanding is that the ESB has very substantial borrowings based on the balance sheet that includes the transmission system and that the value of the transmission system is security for the ESB on some of its substantial spending programmes which involve significant borrowing. How does the Government plan to deal with that issue early next year?

Eamon Ryan (Dublin South, Green Party)
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Deputy Coveney and I were opposition colleagues at a time when the borrowing limit was increased for the ESB from, if I recall correctly, €2 billion to €6 billion.

Simon Coveney (Cork South Central, Fine Gael)
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Yes.

Eamon Ryan (Dublin South, Green Party)
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Looking at the recent annual accounts it is interesting to note that the borrowing level has not increased to anywhere near what was anticipated. It is probably closer to what it was at the time when emergency legislation had to be drafted. I am less concerned about the balance sheet, the borrowing aspect of the ESB, than I would be if it had been closer to the levels we provided for in legislation. Deputy Coveney is correct in saying that in opposition I also welcomed the separation of the ownership of the transmission assets under the understanding that these assets would be maintained in public ownership, that this was an asset that rightly belonged to the people, that it is a natural monopoly and, therefore, there was no question of these assets being privatised. Given that we had a separated out transmission grid company that was meant to have complete autonomy and was acting with complete autonomy, the reality was that in a sense the assets had to be transferred to make a reality of that separation out. It was nonsense to separate out this company completely and not give it ownership of the assets it managed. On the basis of giving that company confidence in how it manages those assets there would be no effective transmission grid company if on the one hand it was told to act in a certain manner and at the same time it did not have confidence in what it was doing because it did not own the assets it managed, so it made sense.

Brendan Howlin (Wexford, Labour)
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An tAire——-

Eamon Ryan (Dublin South, Green Party)
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Sorry, perhaps I can finish.

Brendan Howlin (Wexford, Labour)
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——by way of explanation, under the terms of the order of the House the Minister has one minute to reply. The Minister has already used two in this reply.

Eamon Ryan (Dublin South, Green Party)
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Perhaps I can finish briefly.

Brendan Howlin (Wexford, Labour)
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I call Deputy Coveney for a final supplementary and then the Minister can incorporate his reply into it.

Simon Coveney (Cork South Central, Fine Gael)
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Taking a slightly different tactic, because this is a huge area, the renewable energy promotion area, does the Minister plan specific targets on an annual basis in terms of the overall power generation in Ireland coming from renewable energy and, if not, why, because that is something he promoted strongly in opposition?

Eamon Ryan (Dublin South, Green Party)
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We have the obvious target of 15% in electricity generation by 2010. At present we are close to 10%. With targets we have to be careful not to set limits to our ambitions. I would like to go way beyond some of the targets already set. I have no objection if that can be done on an annual basis or otherwise.

Simon Coveney (Cork South Central, Fine Gael)
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Can the Minister set a floor?

Eamon Ryan (Dublin South, Green Party)
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Yes. Those targets that have been set are the floor.

Simon Coveney (Cork South Central, Fine Gael)
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They are not annual targets. Therefore, there is no way of measuring performance on a yearly basis.

Eamon Ryan (Dublin South, Green Party)
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I am quite happy to be measured on reaching those targets not as a limit of our ambitions but as the floor on an annual basis and to be picked up on that if we do not achieve it. I will come back to the ESB at a later stage.