Tom Sheahan (Kerry South, Fine Gael)
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Question 40: To ask the Minister for Communications, Energy and Natural Resources the way he plans to facilitate connection to the grid for new wind generation projects on shore and offshore that make commercial sense but are not part of the gate three process; and if he will make a statement on the matter. [43329/09]

Ulick Burke (Galway East, Fine Gael)
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Question 55: To ask the Minister for Communications, Energy and Natural Resources if he plans to amend the gate three system to facilitate commercially viable new wind farm proposals receiving grid connection without delay; and if he will make a statement on the matter. [43254/09]

Seán Sherlock (Cork East, Labour)
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Question 59: To ask the Minister for Communications, Energy and Natural Resources if he will comment on the options for investors of offshore and onshore wind farm applications outside the gate three process; the position regarding the wind farm applications to the grid and overview of the gate three process; and if he will make a statement on the matter. [43356/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 40, 55 and 59 together. The Commission for Energy Regulation, CER, has statutory responsibility for grid connection offers and for oversight of EirGrid's grid connection process. Currently, there is in the region of 1,400 megawatts, MW, of renewable generation capacity connected to the electricity grid. Wind powered technology is the dominant renewable technology. Approximately 100 individual windfarms have been connected with a combined capacity of approximately 1,100 MW. Some 240 MW of hydro-power are connected. The balance represents biomass plant, mainly landfill gas.

The contribution from renewable energy connected to the electricity grid is increasing very steadily from year to year. Renewable generation contributed 12.2% of all electricity consumed in 2008 compared to just 4.4% in 2003. Ireland is on schedule to achieve the 15% target for 2010 and must meet the 40% target set for 2020. It is worth recording that on Thursday 19 November, wind power was contributing more than 700 megawatts to the system, the equivalent of the entire output from Moneypoint.

In addition to projects already built and connected, a further 1400 MW of capacity have already signed grid connection offers and have been accepted into the renewable energy feed in tariff, REFIT programme. These projects were part of the gate 1 and gate 2 processes and will be built and connected to the grid in the next two or three year period. The projects being built this year and next year will ensure delivery of the 2010 target of 15%. Those built in following years will contribute to meeting our 2020 target. The CER and EirGrid have calculated that approximately 5,800 MW of renewable capacity will be required to deliver the 40% target in 2020.

The CER decision on the gate 3 round provides for connection offers for 4,000 MW of additional renewable electricity capacity. Approximately 90% of these offers are wind powered capacity, including in the region of 800 MW of offshore wind. The projects in gate 3 were selected by the CER on a first-come-first-served criterion. The 4,000 MW of capacity within the gate 3 process are currently being assessed as part of the connection process. Connection offers are scheduled to issue between now and early 2011.

To ensure this process operates efficiently and to keep the industry stakeholders informed of the ongoing work, the CER has established a gate 3 liaison group involving all stakeholders, including EirGrid and the renewable industry associations. The objective is to ensure the connection offer process is completed quickly, transparently and effectively. The gate 3 process was extensively consulted on by the CER. With a full public consultation and dedicated industry workshops, all industry stakeholders were given the opportunity to respond in advance to the proposed connection process.

The decisions by CER on gate 3 projects are potentially capable of delivering the 40% national target for the contribution from renewable energy resources to electricity consumed by 2020. In the event of any failure to take up gate 3 offers, the CER intends to add replacement projects currently in the queue, to ensure delivery of that target. Strategies to deliver on the distinct potential for exporting renewable electricity from Ireland will be also progressed. These will take account of grid technology developments, power flow management techniques and progressive interconnection with the UK and potentially Europe.

Simon Coveney (Cork South Central, Fine Gael)
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I thank the Minister for his reply. I hope he will accept that I share his vision to the effect that we must move away from a reliance on fossil fuels and towards a much more sustainable renewable power source for electricity generation. Primarily, that source will be provided via wind energy.

I take issue with the Minister in the context of how it is planned to connect onshore and offshore wind generation projects to the grid under the gate 3 mechanism. It has been made clear, at meetings of Oireachtas committees and elsewhere, that the basis on which a grid connection under the gate 3 mechanism is granted relates to the length of time for which a project has been awaiting connection rather than on whether — in the context of wind speeds, location, proximity to the grid, etc. — that project is suitable.

Does the Minister accept that if we are to build between 2,000 to 4,000 wind turbines during the next ten years to produce the level of power envisaged by him, we should adopt a far more strategic approach with regard to where we locate this infrastructure? Does he also accept that this would be preferable to granting grid connection on the basis of the length of time a project has been awaiting such connection? At present, there is no strategic planning in this regard. In that context, certain zones could be identified as being suitable locations for the development of wind farms.

The Green Party makes big play of the fact — and rightly so — that terrible planning mistakes have been made in the past. Such mistakes contributed to the tragedy to which the past week's flooding has given rise. We must not do the same when it comes to planning for this massive infrastructural project that will involve the construction of thousands of wind turbines. Instead of relying on stakeholders who have a vested interest in obtaining grid connections, we should take a much more strategic approach and zone areas where the development of wind farms — in the form of new projects and those awaiting connection — should be encouraged.

Eamon Ryan (Dublin South, Green Party)
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I agree with the broad points made by the Deputy. Projects in gate 3 were selected on a first-come-first-served basis. However, I do not believe this will be the key criterion in the context of what has been built and developed. I ask the Deputy to be publicly supportive of what is the key criterion, namely, the development of the grid that will be required to take on the power produced by these wind turbines. That development project will not be politically popular, it will prove to be contentious and many people will voice their concerns in respect of it. If Deputy Coveney's party is serious with regard to meeting some of the targets we have set, I ask that it be supportive of the key criterion to which I refer. If we fail to construct the grid that is required, no amount of gate systems will work. It will not be possible to proceed unless the grid is built out to connect to the wind generation projects in question.

The Deputy is correct that our approach in this regard must be strategic.

Simon Coveney (Cork South Central, Fine Gael)
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If the approach was strategic, there would not be a necessity to build such a large grid.

Eamon Ryan (Dublin South, Green Party)
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I agree. However, the study being carried out by EirGrid is strategic and is correct. EirGrid is prioritising investment and developments on the basis of how the grid can be rolled out.

Simon Coveney (Cork South Central, Fine Gael)
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The whole point is that it does not match gate 3.

Eamon Ryan (Dublin South, Green Party)
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The Deputy's second point, namely, that the planning decisions made in respect of this matter must be the correct ones, is valid. I understand that approximately half of the applications made in respect of the development of wind farms have been rejected. Decisions in this regard are appropriate on a range of grounds, including the proximity to housing, the effect a project could have on the landscape or environmental concerns relating to the nature of the habitat where it is proposed to build a wind farm. It is a matter for local authorities and An Bord Pleanála to adjudicate on such matters on a case-by-case basis.

I hope decisions in respect of this matter will be made in the understanding that there is a need for urgency, particularly in light of the temporary opportunity afforded to us — as gas prices fall — to switch to a renewable alternative that will be cheaper, cleaner and more secure in the future. There is an imperative in this regard for me to inform the regulator and the grid company that we should proceed with development in as quick, safe and proper a manner as possible. Such development will be in the long-term interests of the country and its people.

Liz McManus (Wicklow, Labour)
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Ostensibly, we are all on the same side in respect of this matter. However, there is a problem with regard to implementation. The Minister referred to instances where planning is not granted and everyone accepts this can happen. Is he aware of the position with regard to cases where planning permission in respect of projects is running out? I refer, for example, to a project to construct a large wind farm at Bellacorick, County Mayo, with which Bord na Móna and the ESB are both involved, which cannot proceed because of difficulties relating to grid development. That is a matter of which the Minister should take charge. If the different agencies are not working together to ensure that needs are met, the need for urgency to which the Minister refers is not getting through. Will the Minister comment on this matter?

When will timelines outlining the different elements of the grid development plan prepared by EirGrid be forthcoming? The Minister called on the Opposition to support grid development. I presume he is referring to the North-South interconnector in this regard. Will the Minister indicate what is the level of support for grid development on the Government side? The Government tends to hide behind agencies such as An Bord Pleanála and local authorities when it comes to difficult issues.

Eamon Ryan (Dublin South, Green Party)
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I speak for the Government, which is fully supportive of the process in which EirGrid is engaged and which is aware of the fact that critical infrastructure is going to have to be rolled out. The Deputy referred to the North-South interconnector. In that context, if areas such as Cavan-Monaghan are intent on attracting industries in the future, they will be obliged to have in place high-quality transmission grids that will ensure high-tech factories remain open. This will not happen if the grid is not developed along the lines envisaged by EirGrid. Unless we build the grid, we will not be able to meet the targets that have been laid down in respect of renewables.

Deputy Coveney is correct that this matter is going to be politically sensitive and difficult to deal with. However, the parties in opposition which state that they support the meeting of certain energy targets must follow up on their claims in that regard.

Liz McManus (Wicklow, Labour)
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It is not our problem. It is the Government's responsibility to ensure that those targets are met.

Eamon Ryan (Dublin South, Green Party)
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The Government will be supportive, despite the difficult decisions that must be made.

Deputy McManus referred to the period relating to planning permissions running out. We accept that this is an issue and that is why the Minister for the Environment, Heritage and Local Government wrote to county managers to discover whether they could assess the projects that have been built. He also sought to discover whether the definition of "progressed works" could be reconsidered in order that some leeway could be provided in respect of those projects which have been unnecessarily delayed — not through the fault of those responsible for them but rather as a result of the difficulties that exist in respect of the grid — in order that they might proceed despite the fact that their planning permissions are running out. The county managers with whom I have been in communication — I spoke directly to the county manager in Mayo — in respect of this matter are extremely supportive because they recognise that building the grid will not only allow for the generation of energy but will also ensure the infrastructure required to allow them to attract other direct investment and ensure that jobs are retained will be put in place.

Liz McManus (Wicklow, Labour)
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Has the Minister received legal advice on this? I can imagine a court case where a local authority or service provider argues that the works are substantially progressed when there is not a sign of anything on the ground. That is a weak argument. Is the Attorney General happy with it?

Eamon Ryan (Dublin South, Green Party)
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I am sure the Minister for the Environment, Heritage and Local Government has done so. Equally, one does not want a local authority taking such an interpretation that makes any development of wind farms possible. Within the confines of the law and the planning system, they are to do what they can to assist development in this area because it is in the national interest.

Liz McManus (Wicklow, Labour)
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That is a weak response.

Eamon Ryan (Dublin South, Green Party)
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That is the true response.

Noel Coonan (Tipperary North, Fine Gael)
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We have heard much about commercial producers and large wind farm proposals. What is the Minister's policy on micro-producers and what incentives can he offer them? I understand that micro-producers do not require the same level of grid infrastructure. We could be progressing that while we are dallying with the other.

Simon Coveney (Cork South Central, Fine Gael)
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I am concerned that the Minister has moved away from the essence of the question. I am not trying to make my point in an adversarial way and will give a practical example. If I have a piece of land on which it is suitable to develop a wind farm, which has reasonable proximity to the grid, good wind speeds and is on the coast and not in an area of scenic beauty, I have no chance of getting a connection under the gate 3 process. Somebody who has a really poor site for a wind farm but who has been waiting for seven or eight years, which I accept is very frustrating, will be connected before me despite the fact that it would be far more beneficial in the national interest for the farm which makes more commercial sense to be connected. That is the weakness of the gate 3 process. Will the Minister address this specific issue so we can examine the most strategic places in the country to develop wind turbine technology rather than connecting people based on the length of time they have been waiting?

Eamon Ryan (Dublin South, Green Party)
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In my initial reply to the Deputy I stated that where someone is not able to avail of a gate 3 connection it will go back into a pool to develop an alternative project. The CER and EirGrid will have to do this in a very timely manner and recognise that the targets we have set are ambitious and require action. The Irish Wind Energy Association and others recognise that every system will have certain failings and difficulties for one operator and not another. What they do not want is for us to throw up the entire apple cart and have to pick up the pieces afterwards. While the gate 3 process is difficult and has certain limitations, it gave them the certainty they needed to get projects built and that was the first of my criteria.

To answer Deputy Coonan, we introduced a support scheme for micro-generation of less than 11 kilowatt hours and an SEI grant scheme to test the various systems. This is proper and right to ensure that we are developing the proper technologies. My ambition goes beyond that. I have asked the ESB about how we can extend that to larger small-scale micro-producers. I am particularly interested in putting something in place that works for the Irish farming community because it must have a benefit from the system and not just a cost.

Noel Coonan (Tipperary North, Fine Gael)
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I am delighted the Minister is considering the farming community. He is one of the few in Government who is doing so.

Eamon Ryan (Dublin South, Green Party)
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The low price of dairy products makes this a particularly difficult time for the dairy industry, where there is huge potential application of micro-generation. However, I see that as an area with huge potential for us to develop a distributed electricity generation system.