Mary White (Fianna Fail)

I agree with Senator O'Malley. I compliment the Minister on his contribution over the years to alternative energy and congratulate him on putting the issue of nuclear energy on the radar. I will make a few points on the problems with wind energy projects and I hope the Minister will take on the issues.

At present 1,014 MW is pumped out by wind energy and 1,500 MW is ready to go between 2009 and 2014. I will talk about the problems facing the projects that are contracted and ready to go. A substantial number of wind farm projects are ready to begin construction but a number of factors are delaying progress, including delays in getting a grid connection. The majority of the projects that have a contract to connect are likely to be connected in 2009 or 2010, but a number will not get a connection until 2014. There is considerable concern in the wind energy industry that the grid will not be delivered in time to allow all the projects to be built. There is even more concern about grid connections for projects under Gate 3. Most projects in development are finding it increasingly difficult to secure finance. A number of banks are not lending and the level of equity required by the banks has risen significantly. The delay in getting grid connections is causing problems for a number of developers whose planning permissions for projects are running out.

The benefits of wind energy include the creation of jobs in development, construction, maintenance, operations, management, law, finance and insurance; the provision of security against oil price volatility; an increase in our energy independence; and assistance with our environmental commitments on climate change.

There is a serious lack of joined-up thinking between the various bodies that deal with the wind energy industry, including the Commission for Energy Regulation, the Department of Communications, Energy and Natural Resources, the Department of the Environment, Heritage and Local Government, EirGrid, ESB Networks and Sustainable Energy Ireland. The renewable energy development programme was set up a number of years ago to consider energy policy, support structures and so on, but in recent times it has not been an active entity. This body consists of members from all areas of the renewables industry, decision makers such as CER and EirGrid and academics. It should be reactivated quickly and given adequate resources to allow it to achieve its full potential.

Small-scale projects should also be supported. We must make development easier and reduce red tape. One advantage of small-scale projects is that they can be developed by local communities or local companies, thus increasing the local benefits. The programme that SEI is running to encourage micro-generation is welcome, but it must be managed properly and the correct control measures and training must be put in place. On behalf of people who are involved in wind energy, I say to the Minister that it is critical we resolve these issues.