Eamon Ryan (Dublin South, Green Party)

I am happy to respond to the debate and set out where I see opportunities. I agree with Senators that there are huge opportunities and that now is the time to seize them.

Our task is to turn Ireland into a renewable electricity exporter. We must think long-term because it will take several decades, but in the same way we developed the food industry from the 1950s onwards to the point where it is now an €8 billion export industry, we should have similar, if not greater, ambitions to avail of a massive opportunity in respect of the export of renewable electricity in particular in such a timeframe. There is such an opportunity for a number of reasons. We have some of the best renewable energy resources in the world in terms of both wave and wind energy. Ireland is on the Atlantic coast of Europe. We are also operating within the European Union which has committed itself to reducing carbon emissions effectively in electricity production. This has been legislated for, mandated and priced. There is certainty on the investment horizon for anyone thinking of investing in this area at least until 2020 and beyond because the European Union will establish longer term targets. That will help businesses to make the investments necessary to make this happen.

There has been a change in thinking at the Council of Ministers on energy security. There is a realisation that, if we are to rely on a silo approach, where each market will look after its own interests, it will not provide for energy security. In the event of a crisis in the availability of gas, the pipelines that connect countries will not be fully secure. Therefore, it is better to operate as a collective to have such security in both gas pipelines and electricity grids in order that we will start to ensure efficiencies, balancing effects and common technological development in the new forms of electricity generation. That is how we must think when setting ourselves on the path to avail of this opportunity.

This has been the number one item at the Council of Ministers for the past year. The Commission has issued a significant report on how we might support the development of grids to make the interconnection of north-west European electricity market work. Last year nine member states and Norway signed a memorandum of understanding to develop a north seas offshore grid which to provide a platform to export power. I am travelling to Brussels in two weeks to sign a memorandum of intent and commence detailed planning work on how the markets will integrate, how the grid will be developed and how we will regulate, fund and finance it. This is central to the European Union agenda and offers a real opportunity for us. I recently met the German Minister to discuss this issue and I am travelling to London on Monday to discuss it because we have a common purpose with Britain as our most immediate European Union partner, although we also have common cause with France in recognising that the network will be regional in nature. However, our first step will be with the British in starting the development of the interconnector between north Wales and north Dublin.

We must do a number of things to get things right. We must agree to the market arrangements. An INTERREG-funded study, the isles project, examines how we might transfer power and make market arrangements. Detailed modelling is being done by EirGrid to determine how further interconnectors would work in allowing us to shift power and is showing positive effects, with a good energy flow both ways. It will reduce our domestic electricity production costs because there will be fewer constraints. It shows there is a real opportunity because our neighbours will be looking for clean, green power that we have the potential to supply. We must build the industry and the key first step is to provide for clarity on the level of interconnection. We can then scale upwards on the generation side. This will be done in various forms, including offshore. We can build big, even though costs will be high, which will allow us to overcome some of the planning constraints onshore. If grids are developed in the Atlantic and wave technology develops, there will be an immense opportunity. We have just completed a detailed strategic environmental and economic assessment of the potential and it shows potential production in the ocean area, even without entering environmentally sensitive areas, is some ten times our current production levels. While this is a long-term opportunity, we must do the work to see if we can make it happen.

There are other options in respect of interconnection to connect electricity generated onshore from renewable resources. Various options are being discussed in this regard, including, as mentioned, scaled pump hydro. I am committed to making this happen. There might be other large-scale onshore wind energy projects that could work on similar grids. The key is to have the grid infrastructure in place, assist private sector investment in an environmentally sensitive manner and offer an export opportunity which could help to accrue revenue for the State as well as for the private sector developers in terms of licensing. It is important to remember this because it will not be without controversy.

As we know, building grids is not easy. At a time when we are uncertain about our economic future, this area offers great potential. It is mentioned specifically in the four year plan, albeit not in huge detail because the document concentrates on budgetary, debt and other financial matters.

This is, however, central to the work I am doing. It has probably been my number one priority in the past year and we are close to making it a reality. Our European partners, including the British and French, and the European Commission are committed to the concept and are willing to help support it. With our grid company, EirGrid, with ideas from people in the private sector, we are well placed to make it happen.