Dan Boyle (Green Party)

The Minister for Communications, Energy and Natural Resources in his opening contribution stated this Bill was an important part of Government energy policy and an important priority within the Government's set of priorities, and that the existence of the programme for Government shows its commitment towards energy in general.

The Bill is an important one. Some of its general principles have been examined by Senator O'Toole. Its essential principle was agreed in a previous Act which provided for a stand-alone distribution company as opposed to a generation company. Some of the fears expressed by Senator O'Toole continue to be real. I agree that the electricity distribution system is a vital piece of infrastructure. I do not believe there will be any political demand, in the short to medium term, for the privatisation of this country's electricity grid system. Any movement in that regard should be met with great reluctance.

The Bill outlines how the electricity grid can be added to. Some such projects are under way. The development of the North-South interconnector has not been without controversy. The development of an east-west interconnector is being considered. It is possible that an interconnector between Ireland and continental Europe will be developed in the near future. I would like to address each of those three projects.

It makes eminent sense, in the context of the all-island electricity market, that we develop a North-South interconnector. The infrastructure that will accompany the interconnector has been the subject of a great deal of controversy. The Minister acted wisely when he initiated a survey. The survey may not provide the answers that would please the public in the areas concerned. We should constantly strive to ensure there is public confidence in the system. It is no secret that Green Party public representatives in counties like Louth and Monaghan have expressed their reservations publicly. The Minister and the Department face a difficult task in squaring that circle. I am sure the final result will be the development of an interconnector that provides the electricity needed by everyone on this island and an electricity market from which we all can benefit.

We should also look forward to the development of an east-west interconnector. Senator O'Toole's suggestion that Ireland's use of a certain amount of electricity from the British market, a certain percentage of which is generated from nuclear sources, means that we use a certain amount of nuclear-generated electricity each year is based on a mathematical assumption. An alternative way of looking at that equation is used in this country's electricity generation market. Some people sign up to Airtricity services on the basis that they will receive electricity from renewable sources, even though they are aware that the electricity in question comes through an electricity grid that does not distinguish between renewable and other sources of energy.

Matters will become more problematic if a third interconnector is developed, this time between Ireland and continental Europe. It is likely that such a connector would be between Ireland and France, which has an electricity system that is 80% derived from nuclear sources. In such circumstances, we would have to ask ourselves questions of the type Senator O'Toole has raised during this debate. It is much more difficult to distinguish between electricity generated from nuclear and other sources in a country like France in which nuclear power is such a predominant policy choice.

I would like to comment on some other issues relating to the electricity grid. The Minister is still trying to deal with a challenge in that regard, although the ESB's 20-year investment programme might help him to overcome it. I refer to the ability of new participants in the electricity generation sector, especially those producing electricity from renewable sources, to become active participants in accessing the existing grid. Those who are involved in the renewable sector, or want to get involved in that sector, find it difficult to connect the power they produce to the grid. One of the benefits of the quick enactment of this Bill will be the development of a new way of addressing these problems. The past reluctance to facilitate new arrivals on the market seems to be dissipating. Such reluctance, which stemmed from a form of engineering conservatism, should not be part of our energy future. Many people in the system continue to take a conservative approach to new ideas. They feel that systems that worked in the past should continue to be used in the present. They think that any attempt to accept innovation will cause problems in the future.

If we are to develop a post-oil economy, we will have to adopt diverse approaches to technology. Political responses to new technology need to be encouraging and accommodating. While the Minister has been proactive in that regard, much needs to be done to address the deep-seated prejudices that exist in certain organisations. Such bodies need to adapt to meet the new realities. I hope this Bill represents an attempt to address such issues. It has my support, and that of my colleagues in this House, on those grounds.

The final issue I wish to discuss is the ability of EirGrid to meet its infrastructural needs through its own and other resources. It is obvious that decisions about the future of public expenditure are being taken at this time. The Government has prioritised certain infrastructural projects. There are many enabling mechanisms in this legislation that will allow EirGrid, as a stand-alone organisation, to address its own financial needs in the financial markets. That should be encouraged on one level because infrastructure is needed and the company's financial load needs to be organised properly. I am concerned that part of Senator O'Toole's argument will prove to be true if EirGrid does not need to meet a certain proportion of the cost of the infrastructure that is to be developed in the energy sector in the years to come. If the company has the ability to meet the financial commitments associated with the establishment of new infrastructure without assistance from the Government, it will be able to put more distance between itself and the Government and thereby have the ability to control that infrastructure in the future. I ask the Minister to respond to that suggestion at the end of the debate.