Tommy Broughan (Dublin North East, Labour)
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Question 171: To ask the Minister for Communications, Marine and Natural Resources if he will report on the recent EU Heads of Government decision to establish a common energy policy; the proposed timetable for a new common energy policy; the implications of such a policy for Ireland; if the Polish Government's proposals for a new European energy security policy akin to an energy NATO will be incorporated into this new policy; if Ireland will be involved in a regional energy market with the UK; and if he will make a statement on the matter. [13602/06]

John Browne (Wexford, Fianna Fail)
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The Taoiseach, accompanied by both the Minister for Foreign Affairs and the Minister for Finance, attended the recent spring European Council.

Future energy policy for Europe was the central issue for this Council with the discussions focusing on the European Commission's recently-published Green Paper, A European Strategy for Sustainable, Competitive and Secure Energy.

The discussions on energy were very much a first step in what promises to be a long and complex process. It is without doubt an issue of central importance to Ireland and the future success of our economy. As Ireland shares many of the challenges facing the EU in the energy area, we will participate actively in the EU debate.

The Polish Government's specific proposals around an energy treaty to deal with energy security of supply challenges were not discussed in detail. The European Council agreed to increase security of supply through among other things ensuring common operational approaches to address crisis situations in a spirit of solidarity, taking subsidiarity into account.

The Government is progressing the development of an all-island energy market on a joint basis. In the longer term, enhanced interconnection with other EU markets will deliver improved security of supply and greater consumer choice. The proposed electricity interconnector with the UK will be the first tangible step in this direction. In that context the European Council conclusions refer to enhanced co-operation and co-ordination between regulators and system operators on a regional basis through co-ordinated information exchange and building on existing bodies such as the European energy regulators group for electricity and gas.

Bernard Durkan (Kildare North, Fine Gael)
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Question 172: To ask the Minister for Communications, Marine and Natural Resources his proposals for an enhanced and accelerated programme for alternative and sustainable energy production incorporating security of supply; his proposals for the utilisation of the Corrib gas field; when he expects a resolution to the issues involved; if he intends to alter or amend the procedure in respect of exploration, delivery or storage of oil, gas or other minerals; and if he will make a statement on the matter. [14057/06]

John Browne (Wexford, Fianna Fail)
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Ireland currently has approximately 790 MW of renewable capacity connected. This consists of approximately 520 MW of wind powered plant, 240 MW of hydro powered plant with the balance, approximately 30 MW made up of different biomass technologies. The renewables directive, Directive 2001/77/EC, obliges Ireland to develop and implement a programme capable of increasing the amount of electricity from renewable energy sources to 13.2% of total consumption by 2010.

The target of 13.2% approximates to 1,450 megawatts of installed generating capacity to be operational to the electricity network by 2010. The additional new capacity required to achieve the 1,450 MW target will be delivered by a combination of projects under the previous AER V and AER VI competition, the new renewable energy feed in tariff, REFIT, programme, the greener homes domestic grant scheme and the mineral oil tax relief scheme.

The REFIT programme will move from competitive tendering, AER, to a fixed price based system. I expect to be in a position to launch the programme shortly, following a public consultation process which has usefully informed the shape of the new programme.

The multi-annual financial package for renewable energy announced in budget 2006 provides funding of up to €65 million over a five-year period for renewable energy schemes that will include grants for a range of renewable heat, electricity and transport initiatives. The programmes cover the biofuels, biomass heating, combined heat and power, CHP, and domestic energy sectors. The first part of the programme — the greener homes domestic grants scheme — was launched on 27 March 2006 and provides up to €27 million in grant aid for domestic renewable heat technologies, including wood pellet stoves and boilers, solar panels and heat pumps.

In 2005 a pilot mineral oil tax relief scheme for biofuels was rolled out and has resulted in eight projects being awarded excise relief. This will result in 16 million litres of biofuels being placed on the Irish transport market by next year. Building on the success of this scheme I have agreed with the Minister for Finance a further targeted package of excise relief valued at €205 million, which was announced in the budget. The new excise relief programme, which is subject to State-aid approval, will be rolled out from this year to 2010 and will enable Ireland to reach the initial target of 2% market penetration by biofuels by 2008. When fully operational the relief is expected to support the use and production of some 163 million litres of biofuels each year. I am also providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package.

The Deputy will be aware that development work has ceased temporarily on the proposed onshore pipeline for the Corrib gas field because of concerns relating to safety. Work on the offshore pipeline has been deferred to late 2006 while the construction work on the terminal has been suspended due to concerns about workers' safety in relation to site access. With regard to the onshore pipeline safety issue, I commissioned an international consulting company, Advantica, on 25 August 2005, to carry out a thorough and independent safety review of the proposed upstream onshore pipeline. In parallel with this safety review, I established a public consultation process to ensure that the concerns of the community would be fully addressed in the review.

As part of this process, a two-day public hearing was held in Geesala on 12 and 13 October, chaired by Mr. John Gallagher SC, during which the community was given the opportunity to express its concerns directly to the consultants. The consultants also made a separate site inspection of the pipeline route. They subsequently took the local concerns into account when carrying out their review. The review also critically examined all relevant documentation relating to the design, construction and operation of the pipeline and associated facilities as well as concluding whether or not the proposed installations would comply with recognised international best practice and would deliver a facility that it is fit for purpose. Advantica was also asked to identify any deficiencies in relation to the safety of the pipeline and to make recommendations as to how these, if identified, would be remedied.

The draft safety review was presented to the community on 8 December 2005 and published on the same day. Comments were invited on the draft, with a closing date of 22 December. The final report of the safety review was received in the Department recently and will be published shortly, together with recommendations arising from it made by the Corrib pipeline technical advisory group within the Department.

The Deputy will also be aware that I have after consultation with relevant parties, nominated a mediator, Mr. Peter Cassells, to work with the parties. This process is ongoing.

I hope the mediation process, augmented as needed, by the results of the safety review will allow all those concerned to work together to resolve the difficulties that have arisen. I will ensure that the outcome of all of these initiatives is fully taken into account in making forthcoming decisions on the project. Should the pipeline development works recommence in the near future the developers hope to bring the gas ashore by mid to late 2008.

I have no function in the utilisation of the gas from the Corrib gas field. This is a matter for the developers.

With regard to non-petroleum minerals, exploration and development is undertaken by private enterprise and regulated under the Minerals Development Acts 1940 to 1999. All extraction of minerals under the Acts is subject to payment of royalties to the State. While it is my intention to consolidate and update those Acts in a new minerals development Bill currently in preparation, I do not propose to change that policy. The awards to be made under the Slyne-Erris-Donegal round will be issued under these licensing terms. When this round has been completed, I will turn my attention to the question as to whether the current licensing terms remain appropriate in this age of high gas and oil prices and the emerging tight supply position in Europe.

Under the Gas (Interim) (Regulation) Act 2002, the Commission for Energy Regulation, CER, has the function of licensing natural gas storage facilities. In carrying out its functions, the commission must have regard to the need to ensure that there is sufficient capacity in the natural gas system to enable reasonable expectations of demand to be met and to secure the continuity, security and quality of supplies of natural gas.

In the context of the all-island energy market development framework, as part of the strategic goals enunciated, scope for a common approach on storage and liquefied natural gas within a timeframe of 2005 to 2007, has been identified. Work is progressing in bilateral discussions in both jurisdictions involving the Departments and regulatory authorities on this matter.

In addition, Marathon Oil Ireland Ltd has planned the development of natural gas storage facilities at south west Kinsale. Procedures for the storage of gas in those facilities are a matter for the leaseholder and do not fall within my remit. The CER is finalising the licensing regime and it is planned that the storage facility will be operational in summer, 2006.