Joe O'Toole (Independent)

I wish to make some straightforward points. On the issue of wind energy, I want to clarify a number of issues. I agree that wind farms might despoil the landscape but we might have to make a choice some time between that and the possibility of sea water encroaching on some of the beautiful parts of the Minister of State's county, among other areas. That is a choice we must make.

I want to deal firmly with Senator Mansergh's point about the instability of wind energy. As the Senator correctly stated, wind energy blows hot and cold, weak and strong. The reality is that wind energy throughout the country needs to be connected to the one grid because for 90% of the time, wind is blowing somewhere on the island. That is the correct figure. Airtricity put forward a proposal to the European Union to have a bank of wind farms interlinked from Scandinavia to the Mediterranean. There would always be wind blowing, as we can see from normal weather movements. That is the way forward.

I strongly agree with the point made by Senator Finucane on microgeneration. A new report on this area has been published, which I have not read yet as I only received it two days ago. Connecting to the grid is a crucially important part of that, but we heard over a year ago that the connections to the grid are to be suspended. I do not know the reason for that. We did not get an explanation despite the fact that Senator Finucane, myself and a number of other Members raised it in the House.

Senator Mansergh mentioned biomass. I presume in its usable form that is a reference to wood pellets. About three weeks ago I inquired about buying wood pellets in the State, but I could not find a company that sold them. They must be imported from the North. What is the reason for that? Why can we not produce wood pellets here? What is the problem in that regard?

More importantly, and this is where this country always goes wrong, I am aware that one can get a grant for installing a wood pellet burning stove but one cannot get a grant for installing solar panels or a geothermal heating system. Where is the balance in that policy? What are we doing in that regard? Why can we not adopt the same approach to both options of the availability of a grant?

In terms of bio-fuel, we cannot create an industry for the agricultural community, many of whom the Minister of State represents, while there is a cap on the amount that can be produced under the excise limit. We cannot ask farmers to consider growing a new crop if there is not continuity and certainty of a market and we cannot ask industrialists or other people to develop that industry if they cannot be sure of it either. Currently, the cost of a barrel of crude oil or diesel is approximately $60, although the price fluctuates and was $70 a barrel at one stage. The cost of producing bio-fuel is almost double that at more than $100 a barrel.

The way some countries, such as Germany, have dealt with the difference in cost, and I am not suggesting this measure but outlining it for the information of the House, is to increase the excise on diesel to make bio-fuel more competitive, although that is perverting the market and I am not attracted to the idea. The head of Airtricity made a statement last week indicating that he expected the price of crude oil to be more than $100 a barrel by the end of next year. If that is the case, bio-fuel would be viable because that price will not increase. We need to be ready to catch that market and encourage such production now. That is what I ask the Minister of State to do.

I would like to there to be a move forward on the following issues. We should remove the cap on production and consider other ways of making the product more efficient. The Minister of State should also explain the reason renewable energy generation projects are not grant aided in the same way as are wood pellet burning installations. Solar energy appears to be going a-begging. It is almost winter and harnessing the solar energy that is currently outside would heat water to almost 20 degrees, which is enough to knock the sting out of cold water and to reduce many of our energy costs. Will the Minister of State consider those issues? I look forward to hearing his response to them.