Jim O'Keeffe (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 55: To ask the Minister for Communications, Marine and Natural Resources if, arising from a recent decision by the regulator, he intends to issue directives regarding future financial incentives for the wind energy production sector; and if he will make a statement on the matter. [8371/05]

Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Question 61: To ask the Minister for Communications, Marine and Natural Resources his views on whether the wind energy sector is unlikely to receive the degree of financial support from the regulator as in the past; and if he will make a statement on the matter. [8369/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 55 and 61 together.

Support to increase the penetration of renewable energy technologies generally in the electricity market is administered by my Department with some support from the research and development programme operated by Sustainable Energy Ireland. The current minimum target my Department is working to deliver, is to increase the consumption of electricity from renewable energy sources to 13.2% of total consumption by 2010 in accordance with Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market.

To ensure this target is met, a renewable energy development group was established in May last. It includes representatives from the renewable energy representative associations and the Commission for Energy Regulation, CER. In the course of the work of this group a wide spectrum of views and opinions was expressed by the parties involved, including a view expressed by the energy regulator that the wind sector is now sufficiently developed to operate on a merchant basis. In the interests of clarity and transparency, I put the view of the energy regulator out for public consultation and several replies have been received. The views of the respondents will be considered alongside the view of the energy regulator.

The Commission for Energy Regulation is an independent body under paragraph 9 in the Schedule to the Electricity Regulation Act 1999. I have no power to issue directions to the commission of the type referred to.

From my point of view, the priority is to optimise the contribution from all renewable energy technologies on a basis that is fair to all parties, including consumers, and that it can be integrated safely and easily into the national network. Future support will deliver what is necessary to achieve stated targets while ensuring the interests of national competitiveness and the ultimate burden of cost to the final consumer are all fully taken into consideration.

The renewable energy development group is now at the end of its current work phase and its report will be delivered to me shortly. The report will provide me with a useful platform to settle future targets and support mechanisms.