Brendan Smith (Cavan-Monaghan, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources his plans for developing wind energy exports; the targets he has in this regard; and if he will make a statement on the matter. [43714/12]

Pat Rabbitte (Dublin South West, Labour)
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In 2011, Ireland had 17.6% renewable electricity, 3.6% biofuels and 5% renewable heating, which amounted in total to 6.5% of all energy consumed being from renewable sources.

Our intention, in order to meet our 2020 binding targets, is to increase renewable energy to 40% in the electricity sector, 10% in the transport sector and 12% in the heating sector, which together amounts to 16% overall, in line with our legally binding target under the EU Renewable Energy Directive.

Separate to meeting our challenging national target, the potential for export of renewable electricity was outlined in the Strategy for Renewable Energy 2012-2020, which I published earlier in the year.

The mechanisms by which renewable energy can be traded with another country are provided for under the Renewable Energy Directive in Articles 6-12 on cooperation mechanisms.

Countries can agree statistical transfer, which involves the purchase of renewable credits by the importing country in order to meet their target or they can agree joint projects which involves identifying specific projects for the purpose of renewable trading and agreeing how the projects will be financed and how the renewable value will be counted towards each country’s renewable target under the Directive.

The use of these co-operation mechanisms under the Directive requires formal agreement between two or more Governments.

I have had a number of bilateral discussions with my UK counterpart in this regard and we are actively exploring the possibility of trade in renewable energy between the two jurisdictions, with a view to reaching a Memorandum of Understanding by end year.

It will be necessary to ensure that Irish consumers do not have to foot the bill for renewable electricity that is exported to the UK and that some benefits from renewable trade for harnessing the development are achieved for the Irish state and Irish consumers. In the event that renewable power was being exported to the UK, for example, it would be necessary to ensure that the costs associated with new transmission infrastructure to export the power and the cost of a support scheme for renewable developers is paid for by UK consumers, rather than Irish consumers who would not be benefitting from either the power or the renewable value of the electricity.

If the Irish Government decides to enter an Inter-Governmental agreement under the Directive with the UK or another Government, it will have to ensure sufficient return and benefits to the state from such projects. This might include a share of the renewable value or the imposition of a royalty of some type.