Deirdre Clune (Fine Gael) | Oireachtas source

I am grateful for the opportunity to speak on this issue. Like Senator Sean D. Barrett, I will focus on the economic climate. I appreciate it is not within the Minister of State's remit, but we are discussing wind energy.

The cost of energy has come down and we must keep it down. Competitiveness is a serious issue for us, if we are to continue to attract foreign direct investment. Energy policy is political and geopolitical. Things change and the types and sources of power and energy available can change. Senator Sean D. Barrett made a point I intended to make about the United States, where fracking is a new energy source. As a result, the cost of energy has decreased and the United States is becoming more independent in its energy production. Whether that is good or bad is another debate.

The targets we have are EU-wide targets. We have committed to these targets, including having 40% of our electricity produced from renewables by 2020. They are binding targets and to be implemented on a worldwide basis to ensure a reduction in emissions. Nonetheless, there must be a balance when focusing on the cost of energy. After 2020 further commitments will be made. We do not know what they will be, but, as Senator Cáit Keane said, it is important that people involved in the industry have certainty as we move forward.

I am glad that we have signed a memorandum of understanding with the United Kingdom to explore the potential of exporting electricity from this island or importing it. However, many issues must be considered. The cost of transmitting electricity is expensive. Wind energy is free, but it is expensive to provide it at the point of use. Most of the wind energy resource is along the west coast, but the cost of transmission is extremely expensive. If we are to build interconnectors, will there be a fall-back on the consumer or those using the energy supplied? That must not be the case. We must also consider the fact that in our engagement with the United Kingdom Scotland has the potential to produce an enormous amount of wind energy and that it will probably be cheaper to import energy supplies from there through Great Britain than across the Irish Sea. These considerations must be taken into account.

The OECD recommends that all incentives for wind energy production be lifted. Taking that route would produce a level playing field. There are many questions surrounding the economics of wind energy projects and they must be answered. The task the Minister, Deputy Pat Rabbitte, is undertaking, of exploring the potential of exporting renewable energy to and engaging with the United Kingdom, will greatly focus minds on the financial benefits, or lack thereof, of wind energy production.

I am sure we will debate this subject again. Perhaps we will receive answers then and there will be a focus on the economics of the issue.