Arthur Morgan (Louth, Sinn Fein)
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Question 24: To ask the Minister for Communications, Marine and Natural Resources if he has read the recent British Council for Science and Technology report on future energy strategies; his views on the ramifications of the report for the Irish energy market; and if he will make a statement on the matter. [19986/05]

Noel Dempsey (Meath, Fianna Fail)
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I am aware of the report on an electricity supply strategy for the UK published last month and referred to by the Deputy in his question. The report emphasises the importance of investment in energy research and development, suggests that large-scale non-carbon electricity generation will be needed to meet the UK's ambitious CO2 targets and urges a review of the existing regulatory structures.

The themes of the report are certainly interesting, but in considering the potential ramifications for energy policy here, it is important to put things in perspective. There are critical differences in size, market structure and development, and fuel mix between the electricity sector in the UK and ours, so recommendations and solutions that might be appropriate for the UK's market would not automatically be appropriate here.

There is an increasing focus internationally on developing non-carbon energy sources as a response to climate change. In order to meet that challenge there will need to be technology development in carbon sequestration, the development of new renewable energy sources and a step change in energy efficiency and demand management.

One parallel we would have with the recommendations in the report relates to energy research and development. There is a need to focus on innovation by better co-ordinating and supporting research, demonstration and development and ensuring it is aligned with policy goals of energy efficiency, development of renewable energy sources and lowering of carbon emissions. We have already issued a consultation paper on the future structure of energy R & D and are assessing the responses that will inform the development of a new energy R & D strategy.

I have launched a major consultancy study into the Irish electricity market and, in addition, I and my Department have commenced to look afresh at all aspects of energy policy with a view to publishing a policy document at the beginning of 2006.