Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

We need to ensure that if we can help each other in terms of energy that we do so. In particular, we need to develop regions that do not have the grid they need. This is a major task for all, whether North or South.

We need the grid to ensure reliability of supply to businesses and households. We need it to take the power from where it is generated to where it is needed. We need to reduce our dependency on imported fossil fuels by putting the infrastructure in place to enable reduce our carbon footprint and enable us to reach our mandatory 40% renewable electricity targets by 2020. These aims are all based on our determination that Ireland will develop a power system that meets our future energy needs in a sustainable manner. For this reason we do not accept Sinn Féin's proposal and the Government side has put an amendment to the House.

Ireland has a target for 16% of our energy to come from renewable sources by 2020, with 40% of our electricity to come from renewable sources. To meet this target, Ireland must move from 170 MW per year to 250 MW. The Minister, Deputy Rabbitte, recognised that this makes it necessary to amended the REFIT schemes to extend both the backstop date for REFIT I and the closing date for applications to REFIT II. This year, work will begin on designing a new support scheme to come into operation in 2016. These changes will facilitate the cost effective provision of renewable energy and are fully consistent with starting on a trajectory of revising and reducing price supports for new onshore wind projects over time, while recognising the need for a predictable and transparent policy framework.

We have made significant progress to date, as underlined by the recent SEAI publication, which noted that the contribution of renewable energy to overall energy demand rose from 2.3% in 1990 to 7.1% in 2012, with renewable electricity contributing 4.1% to the overall energy demand in 2012. Figures for 2013 show that 19% of electricity demand is met from renewable sources. In addition, the level of uptake of connection offers under the Gate 3 process has been very promising. We require an additional 1,500 MW to 2,000 MW of renewable generation to meet the 40% target. Approximately 3,000 MW of offers have been accepted. The rate of delivery under Gate 3 will be a factor of critical importance and will require close monitoring.

Ireland has an abundant source of renewable energy. The pipeline of projects established through our group processing approach means we have confidence in our ability to meet our target of 40% of electricity from renewable sources by 2020. We have an opportunity to enter into an across-state co-operation. The memorandum signed by the Minister is the first such memorandum in this regard. Transboundary co-operation makes sense and does not, as implied, represent a barrier to delivery of our own domestic targets. Such an agreement is above and beyond domestic targets.

With regard to the export of renewable energy, we have made good progress on this innovative and ambitious work since the signing of the memorandum of understanding by the Minister and his counterpart in the United Kingdom in 2013. The body of work progressed under the memorandum has significantly progressed our understanding of the potential mutual economic benefits to Ireland and the United Kingdom of renewable energy trading and the policy, regulatory and economic framework that is required to support it. The Minister has said many times that any intergovernmental agreement must be clear, realisable and bring significant benefits to us. Any rewards must outweigh all potential risks. The foreseen benefits would need to include investment, jobs and growth. The local economy would need to benefit through the flow of rates to local authorities and community gain for local communities is important. Ireland must benefit from appropriate returns to the Exchequer and infrastructure to underpin economic development.

Both states remain committed to making these projects happen. However, key policy and regulatory design decisions still remain to be taken by the United Kingdom, which means we are still a considerable distance from settling on the specifics of what the Irish Government and the renewable generators believe must be the basic components of any intergovernmental agreement. For this reason, within the particular timeframe, it will not be possible to deliver the project as envisaged. Therefore, the shared work with the United Kingdom will focus on the longer term post-2020 period, and both countries will continue to work together towards that. As the Taoiseach said yesterday, we will engage with the United Kingdom over the next three months to attempt to develop a workable architecture for trade, which realistically now must be post 2020. I repeat what the Minister said. He stated that whether or not the midlands export project goes ahead, this country will still need a grid that is fit for purpose. The plans to develop the grid do not have, and never did have, anything to do with the midlands export project. That project remains a novel project which, if realised, will bring jobs and wealth to Ireland.

Looking at the 2030 targets, the overarching objective is to ensure secure and sustainable supplies into the future. Ireland is very reliant on imported fossil fuels to meet our energy needs. While it is acknowledged that fossil fuels will remain part of the energy mix for some time, progress is being made towards increasing the share of renewable energy. We are aiming for a new EU energy and climate change framework for 2030 and towards achieving a low carbon economy by 2050. Following the recent publication by the European Commission of its proposal for a 2030 climate and energy framework, the Department is undertaking analysis to establish the scale of the contribution Ireland can make to meeting these targets, while ensuring that action taken will be cost effective and will not impose an undue burden on our recovering economy.

As I do not have time to read my prepared speech in full, I will make it available to the House and Senators may read it later.

I wish to make some key points before I finish. Reference was made to oil and gas by Senators and we are trying to develop our offshore energy also. I was in Bellanaboy recently, which is a remote area of Mayo. What impressed me was that in one of the remotest part of the country, there are over 1,000 people working. The Senator may laugh, but we can look at the number of cars there and see the local economy benefit and how important it is to it. If we can achieve significant oil and gas finds off our Atlantic coast - there is significant interest in our potential there - this will be important for the country and will bring thousands of jobs. Any such development will need to meet all our environmental, health and safety requirements.

People cannot put their heads in the sand and go against everything. To go back to the Senator, I put it to him again that we know what he is against.