Bernard Allen (Cork North Central, Fine Gael)
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Question 73: To ask the Minister for Communications, Marine and Natural Resources the position on an all-island energy policy; and if he will make a statement on the matter. [6602/06]

Noel Dempsey (Meath, Fianna Fail)
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Government policy on the creation of an all-island energy market is set out in the all-island energy market development framework which I jointly published with my Northern counterpart in November 2004.

The framework document provides the policy context for the actions needed to create an all-island energy market. The process is overseen by a joint steering group comprising my Department, the Department of Enterprise, Trade and Investment in Northern Ireland and the two regulators.

The key priority within the framework is to have an all-island wholesale electricity market in place by 1 July 2007. The two regulators have already agreed the high-level principles governing the operation of this market and are now working on the detailed rules. This process involves close consultation with stakeholders.

A critical immediate priority for both Governments is to ensure that an appropriate legislative framework is in place to underpin the single electricity market. Delivery of the new single market by July 2007 presents a very challenging timeframe in which the necessary parallel legislation must be enacted. My officials are working intensively with their Northern colleagues and the two regulatory authorities to ensure that this target is met.

While the short-term priority is the creation of the single electricity market, the framework document also sets out a range of objectives requiring action in the short to medium term. The delivery of an all-island market in natural gas is one such objective and the two Departments are currently progressing the various actions to achieve this in conjunction with the two regulators.

Work is also under way to develop a long-term strategy for renewable energy on an all-island basis. A joint North-South public consultation on an all-island vision for renewable energy by 2020 and beyond has been undertaken. The aim is to develop an agreed joint policy paper this year on long-term sustainability of energy supplies, with a particular focus on renewable electricity generation.

Enhancement of gas and electricity infrastructure is a key enabler for the all-island energy market. Bord Gáis Éireann will complete the construction of the South-North gas pipeline from Gormanston to Belfast this year. The two electricity transmission system operators are also progressing the second North-South electricity interconnector project which is scheduled to be operational by 2012.

Co-operation on energy research and development and the coordination of energy emergency planning arrangements are also being advanced.