Pádraic McCormack (Galway West, Fine Gael)
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Question 120: To ask the Minister for Communications, Energy and Natural Resources the rationale for increasing the percentage of energy generated from renewable sources from 33% to 40%; and if he will make a statement on the matter. [37212/08]

Eamon Ryan (Dublin South, Green Party)
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The Government has announced that the target of 33% renewable energy in electricity by 2020 has been increased to 40%. The increased target sends a clear signal to all players of the Government's commitment to accelerated delivery of renewable energy projects thus enhancing fuel diversity and reducing emissions.

The All-Island Grid Study, which was published earlier this year and was commissioned jointly by my Department and the Department of Enterprise, Trade and Investment (Northern Ireland), provides a strong rationale for the new 40% target. It is recognised internationally as a ground-breaking study of its type, which examines a range of generation portfolios for Ireland, the ability of our power system to handle various amounts of electricity from renewable sources, the investment levels required and the climate change, and security of supply benefits that would accrue. The study concluded that it is technically feasible to generate in the region of 42% of our electricity from renewable energy sources across the island without a major additional cost to the economy. The new 40% target for Ireland is consistent with this conclusion.

EirGrid has recently launched its Grid Development Strategy to 2025 which sets out overall plans for investment of €4 billion in the transmission system over the period. This essential strategic investment will underpin economic and regional development and will critically enable delivery of the Government's renewable energy target. The announcement of the 40% target delivers certainty to EirGrid, the Commission for Energy Regulation and all players in relation to the imperative of delivering the necessary grid infrastructure, connections and authorisations to ensure the progressive penetration of renewable energy onto the system. It also sends a strong signal to the renewable energy sector itself as well as to investors and suppliers.

The new target is also fully justified on security of supply and price grounds. Ireland is far too dependent on price volatile imported fossil based fuels for electricity generation. Renewables, especially wind, can provide an indigenous source of electricity generation. They can also ensure a greater degree of price stability as opposed to fossil based fuels.