Bernard Durkan (Kildare North, Fine Gael)
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Question 411: To ask the Minister for Communications, Energy and Natural Resources the position in regard to the provision of North-South and east-west interconnectors; when these are expected to come on stream; and if he will make a statement on the matter. [35955/07]

Eamon Ryan (Dublin South, Green Party)
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As part of the Single Electricity Market development, EirGrid is developing the second North South electricity interconnector jointly with its Northern Ireland counterpart. The increased capacity provided by this interconnector will also facilitate fuel savings, lower emissions and increased integration of wind generated energy. EirGrid and NIE are currently engaged in respective public consultations on a number of proposed routes for the North South interconnector. When this consultation process has been completed, a preferred route will be chosen and planning permission sought. The North South interconnector is scheduled to be delivered by 2011 and will more than double the existing cross border electricity transfer capacity to over 680MW.

EirGrid and the Commission for Energy Regulation are working to schedule on the delivery of the East West electricity interconnector by 2012. The interconnector will provide 500MW of capacity and which will remain in State ownership vested in EirGrid.

Bernard Durkan (Kildare North, Fine Gael)
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Question 412: To ask the Minister for Communications, Energy and Natural Resources his preferred options or proposals for generation, transmission and distribution of electricity in the future; the degree to which he expects agencies including the ESB and similar bodies to undertake responsibilities in these areas in the future; and if he will make a statement on the matter. [35956/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 414: To ask the Minister for Communications, Energy and Natural Resources the extent to which he proposes to rely on the ESB and other producers for the generation of electricity in the future; and if he will make a statement on the matter. [35958/07]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 412 and 414 together.

The Energy Policy Framework and the Programme for Government set the overall strategic directions for energy security of supply, sustainability and competitiveness. The Single Wholesale Electricity Market came into operation on 1 November 2007 and will contribute to the reliability and security of supply of electricity on the island of Ireland and which will overtime deliver more competitive energy prices for business and consumers on the island.

The Energy Policy Framework sets out a range of actions for the generation, transmission and distribution of electricity including:

ensuring the progressive reduction in ESB's market share in power generation to around 40% in an all-island market context by 2010 through the CER-ESB Asset Strategy Agreement of November 2006;

the development of a land bank of ESB owned sites by 2008 to facilitate independent power generation investment up to 2020;

the retention of the electricity network infrastructures as strategic national assets in State ownership;

the establishment of EirGrid as the National Transmission Grid Company by end 2008, transferring to EirGrid ownership of the transmission assets;

ensuring the full operational independence of the Distribution System Operator as an ESB subsidiary by completing its legal unbundling.

Immediate priority is being given to creating the right environment for delivering sufficient generation capacity and ensuring sustained investment in electricity networks while delivering enhanced levels of interconnection within the next five years. The reduction in ESB's market share in power generation and the implementation of the CER-ESB Asset Strategy will improve the investment potential of the Irish market. Ensuring Ireland's generation adequacy position between 2007 and 2011 and planning for adequacy beyond 2012 is an immediate and critical priority which will require close cooperation between EirGrid, CER and my Department as well as existing and potential new players in the power generation sector.

We have also set ambitious and essential targets for the increased penetration of renewable energy. Connected wind capacity will reach over 900 MW by year end, which will represent a very significant increase of over 25% of installed wind capacity since the start of 2007. It is also a priority to ensure the provision of sufficient flexible generation plant to accommodate electricity coming on to the system from wind generation.

In relation to the transmission system, the decision to transfer the transmission assets to EirGrid, establishing it as both the owner and the operator of the national transmission system will reduce the amount of heavy regulation and duplication on both EirGrid and ESB and will deliver efficiencies and significantly reduced overheads for EirGrid. Above all, combining the ownership and operation of the transmission system in EirGrid will deliver confidence to all market players that the system is run in a non-discriminatory way.

The unbundling of the distribution system operator as a legally independent subsidiary of ESB will ensure efficient and non-discriminatory access to the distribution system and encourage effective competition in the electricity market.