Pat Gallagher (Donegal South West, Fianna Fail)

I thank Senator Ulick Burke for raising this issue. He asked at the outset for clarification on the position with regard to the Minister and I will do that. First, I will clarify for the House where actual responsibilities lie as regards access by wind farmers to the electricity, distribution and transmission systems.

In accordance with Part V of the Electricity Regulation Act 1999, on access to transmission and distribution systems, responsibility for access to the national grid, together with the subsequent costs pertaining to same, rests solely with the Commission for Energy Regulation, CER. The Minister has no function in the matter. The CER gives directions to the transmission system operator, TSO, and distribution system operator, DSO, as regards grid codes, matters to be specified in the code and the terms for the connection to, and use of, the transmission and distribution networks. These are all solely matters for the CER, with the Minister having no function or power to intervene. Having stated that, I take this opportunity to advise the House on the background to the issue raised by Senator Ulick Burke and current developments.

On 3 December 2003, the CER decided as an interim measure that the electricity network operators ESB and ESB Networks were not required to offer new binding connection offers for windfarms before the end of 2003. In making this decision the CER was exercising, as I have already pointed out, its exclusive competence under section 34 of the Electricity Regulation Act 1999. The commission was responding to concerns on the part of the grid operator about system stability and reliability if all proposed windfarms were connected. The House should be aware that the CER also has statutory responsibility for security of supply. After the moratorium announcement was made the CER established a working group representing itself, the network operators, Sustainable Energy Ireland and the Irish Wind Energy Association to address the issues and concerns.

In July 2004 the CER published a direction, which appeared to lift the moratorium. However, the Minister is advised by CER that a number of technical issues were unresolved which meant, in effect, that no new connection offers issued before end 2004. Following progress on the outstanding technical issues the CER issued a further direction to the system operators in December 2004. This direction mandated the operators to give immediate priority to issue connection offers to those 34 applications — referred to as "gate 1" applications — which were deemed complete by 3 December 2003, the date of the moratorium. The total capacity involved amounted to 371 MW.

Subsequent to this the CER has been developing, in co-operation with the system operators, proposals for those grid applications still within the application process. These are termed as "gate 2" applications. The Minister is advised by the Commission for Energy Regulation that a draft decision regarding its criteria for entry to gate 2 will issue from the commission within the next fortnight. The Government is firmly committed to progressing the contribution of renewable energy sources to national electricity generating capacity. We are on track to meet our EU target of just over 13% by 2010. The private sector is playing no small part in the meeting of that target by making significant investments in wind energy and in other types of energy.

In order to ensure delivery of the required new renewable energy capacity, the Minister will shortly launch a new support programme which will feature a fixed price feed-in tariff mechanism. Further prospects for the renewable energy sector as well as the institutional arrangements and market structures for the Irish electricity sector, are part of the comprehensive strategy review by Deloitte & Touche. This review has just been completed and submitted to the Minister. It is currently being considered by the Department in the context of the finalisation of an energy policy consultation paper.

Senator Ulick Burke questioned the impartiality of the commission. Both the Minister and I are satisfied there is no question of a lack of impartiality. The Commission for Energy Regulation acts in a totally impartial manner. Its only concern is to ensure that Ireland can strive to meet or hopefully surpass its EU target by 2013.