Noel Coonan (Tipperary North, Fine Gael)
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Question 50: To ask the Minister for Communications, Energy and Natural Resources if he is satisfied that Gate 3 can adequately deal with new wind farm proposals to get grid connection in a timely manner. [16586/10]

Eamon Ryan (Dublin South, Green Party)
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The Commission for Energy Regulation, CER, has statutory responsibility for grid connection offers and for oversight of EirGrid's grid connection process, including the Gate process for renewable energy.

The CER decision on the Gate 3 round provides for connection offers for 4,000 MWs of renewable electricity capacity. Approximately 90% of these offers are wind powered capacity, including around 800 MW of offshore wind. The Gate 3 decisions, combined with the existing renewable capacity and projects currently being built and connected, point to the 40% target being met and even exceeded by 2020.

Ireland's National Renewable Energy Action Plan, which is to be submitted to the EU Commission by next June, will set out the detailed projections and strategies to achieve the national target. The plan is being developed in consultation with the renewable sector and all stakeholders.

The projects in Gate 3 were selected by the CER on a "first come, first served" criterion. Grid connection offers for projects within the Gate 3 process began to issue in December last year and will continue to issue on a phased basis until mid-2011. The Gate 3 process was extensively consulted on by the CER. Through public consultation and dedicated industry workshops, all industry stakeholders were given the opportunity of responding in advance to the proposed connection process. To ensure the process operates efficiently and to keep the industry fully informed of developments, the CER has also established a Gate 3 liaison group involving EirGrid, ESB Networks and the renewable industry associations. This is an important forum for information exchange, for the transparency of the Gate 3 process and to ensure delivery on time for all parties.

There are undoubted challenges inherent in ensuring that connection offers under Gate 3 are matched by the timely building out of the distribution and transmission system. I have made clear to EirGrid, ESB Networks, CER and the industry that addressing those challenges is a critical priority.

Noel Coonan (Tipperary North, Fine Gael)
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I wish to put on record my disappointment that my original question in regard to the national coal miners was not taken, in respect of which I have not yet received an explanation. I am hopeful the Ceann Comhairle's office will give me an explanation in this regard as I am concerned about who is protecting who on a serious matter.

Brendan Howlin (Wexford, Labour)
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I will ensure the Deputy receives a reply to his query.

Noel Coonan (Tipperary North, Fine Gael)
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I thank the Leas-Cheann Comhairle.

On the Minister's reply, the term "on a first come, first served basis" is inappropriate at this particular time. This is a wonderful area in which people are considering investing. Many people are ready and willing to invest in this area. Many of the projects in Gate 3 will probably never come to fruition. I believe the Minister should be considering producing a strategic plan in regard to the locations where these investments should take place, taking account of wind speeds, proximity to the grid and affordability of the project. In other words, projects must be ready to roll out. It is in this respect we differ from the Minister.

Is the Minister in control of policy or is CER dictating the trend in this regard? We are not delivering to people who want to invest in this project. If the Minister had money to invest at this particular time would he choose to invest in current wind energy projects, despite his having to wait seven years to get on a grid to obtain connection or would he consider buying out somebody currently on the waiting list, which is not satisfactory? The Minister needs to take immediate action in this regard.

Eamon Ryan (Dublin South, Green Party)
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We must constantly review procedures to ensure we are delivering on our target to provide more secure, cheap and clean energy supplies. I take the point that we must constantly review the process. We must also examine what has gone wrong in the past. One of the reasons for our not developing as fast as we should was our stop-start policy. The moratorium introduced in 2005-06 had a huge negative effect on the financing of some of these projects resulting in the delays that took place. I am wary of adopting and then starting and stopping policy. The approach we are taking is working. I am told by Eirgrid that an expected 500 MW of wind is due to connect this year. This is what we need to do. To my mind, we need to achieve 500 MWs year-in year-out for the next seven to eight years. I would be reluctant to change policy on which there was consultation and in regard to which I spoke to the wind energy associations in terms of the advantages and disadvantages involved. Like the Deputy, I, too, wonder if this "first come first served basis" is the right approach in terms of assessing which projects are in the Gate and which are not. While the industry agrees there are difficulties with the approach it is by and large the best in terms of getting wind turbines or stations built. There are real problems in getting Gate connections, planning permission and the financing required. However, it is happening.

Given the market is working and delivering at this time the 500 MW a year that we need and the Gate system allows us to at least plan the development of our grid, which is the crucial constraint, I ask that the Deputy support the current approach.

Noel Coonan (Tipperary North, Fine Gael)
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If policy is not working and is wrong then there is a need to change it. Part of the Minister's argument in support of it working is that the industry is in the queue. I inquired of Eirgrid this morning the number of wind farm proposals for County Tipperary. The response I got is interesting. Of the 46 projects concerned, eight are already connected, 14 are in Gate 3 and 24 are in the queue. I ask that the Minister investigate the 12 applications submitted with no project name included. I am concerned that the Minister's policy may be leaving this open to speculation. Is the regulator on top of his job? We do not want happening here what happened in the financial industry. The Minister is leaving this open to speculators, people who can apply and then sell on to others ready and willing to roll with a project but who would otherwise have to buy their place in Gate 3. I ask that the Minister examine this element of speculation.

Eamon Ryan (Dublin South, Green Party)
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I disagree with the Deputy that the process is not working. If we are building 500 MW a year, which we will, I am told, do this year, that to my mind is what we need to be doing. Deputy Coonan implied earlier that I should allow the regulator to do his job. In a later contribution he stated that-----

Noel Coonan (Tipperary North, Fine Gael)
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I asked who is in control of policy.

Eamon Ryan (Dublin South, Green Party)
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It is appropriate in a regulated market that the regulator and transmission grid company apply the proper planning constraints around the grid, which is the big constraint, and that the regulated market be allowed to make some of those calls. I do not have any involvement with any one wind farm or developer. It is best that this is approached on a scientific regulated basis, learning the lessons from some of the other industries. We must ensure a proper regulated approach to this, which is what the CER is pursuing. As long as this is working and delivering the power which I believe we need and is creating power, jobs and raising investment here-----

Noel Coonan (Tipperary North, Fine Gael)
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What about the speculators?

Simon Coveney (Cork South Central, Fine Gael)
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There is a huge opportunity being lost here.

Eamon Ryan (Dublin South, Green Party)
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I do not have any time or interest in a speculative model. By and large, what we are seeing is a series of companies engaged in a proper market. The ones of which I am aware are reputable and are often State companies. I believe we must have good planning, regulation and grid management to make this happen.