Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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5. To ask the Minister for Communications, Energy and Natural Resources his views on whether this State needs to achieve its targets for renewable energy production and self-sufficiency in electricity generation prior to initiating the large scale export of energy generated from renewable sources. [51806/13]

Pat Rabbitte (Dublin South West, Labour)
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The 2009 EU Renewable Energy Directive outlined targets for member states for renewable energy penetration. The directive set Ireland a binding target where at least 16% of our energy requirements should come from renewable sources by 2020. In order to meet our overall 16% requirement, Ireland is committed to meeting 40% of electricity demand, 12% of heating and 10% of transport from renewable sources. The directive also provided the option of co-operation mechanisms to enable a member state to contribute to another member state’s targets.

To date, wind energy has been the largest driver of growth in renewable electricity, contributing most towards the achievement of the 2020 target. In 2012, 15.3% of Ireland's electricity demand was met by wind generation. At the end of quarter three this year, the total amount of renewable generation connected to the grid was approximately 2,100 MW. It is estimated that a total of between 3,500 and 4,000 MW of onshore renewable generation capacity will be required to allow Ireland to meet its 40% renewable electricity target. Currently, approximately 3,000 MW of renewable generation has taken up connection offers under the Gate 3 grid connection programme.

Expert advice has identified Ireland’s potential to produce renewable electricity significantly beyond the level required by the 2020 target, along with the capacity to meet that 2020 target from onshore renewable generation alone.

Ireland’s capability to achieve its national targets for renewable electricity from onshore renewable generation alone, with capacity to spare, means that there is potential for projects of scale onshore that are aimed at export markets. It also means that our offshore wind resource can be developed as an export opportunity.

It is in this context that the opportunity to harness Ireland’s onshore and offshore renewable energy resources for the export market, and realise their potential for investment, job creation and economic growth, has been identified and is being pursued with the UK Government under the memorandum of understanding on energy trading signed in January 2013.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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The Minister has previously stated that the export of wind energy will not interfere with achieving our targets, but there is a broader issue. We should aim for self sufficiency before we export energy generated by wind power. In the longer term the export of energy is a valid and potentially beneficial objective, but self sufficiency should come first. Five or six months ago I asked the Minister what financial arrangements had been reached with the British Government on exporting energy from the midlands. At that time, the Minister replied that no financial arrangements had been made but there was a memorandum of understanding. It must be a matter of concern to the Minister, as it is to all of us, that the British Government announced yesterday that it will reduce subsidies for land-based turbines, while increasing subsidies for offshore ones. I expect that will have an impact on whatever negotiations have been or will be held concerning the export of our energy to the neighbouring island.

Pat Rabbitte (Dublin South West, Labour)
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The Deputy is correct. The memorandum of understanding between myself and the UK Secretary of State for Energy, Mr. Edward Davey, was a statement of intent on an intergovernmental agreement, which we are required to do under the relevant European directive if we are to open up a traded sector between this country and Britain. It did not deal with the matter of a strike price because it could not. We did not have the information and there was no template to do so when the memorandum of understanding was concluded. Since then, however, we have been working on the matter intensively on our side. It is coming to the stage where that issue will have to be confronted in the next couple of months. As I have said in this House, and Mr. Davey has said in the House of Commons, everything depends on the economics stacking up. We both believe that the economics will stack up because it is a more economic and feasible option for Britain to source energy here than offshore. In those circumstances the expectation is that they will stack up. We are satisfied that we can meet our domestic targets with something to spare. Therefore if we have a capacity to generate more electricity than we need for domestic consumption, it would make sense to seek a market for it. Our country lives by trading goods and services, so if we can open up a new and hitherto unheard of market that brings wealth and jobs to Ireland, we think that is a good thing.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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The Minister has not addressed the fact that just yesterday the British Government announced it will reduce subsidies on land-based turbines, while increasing subsidies on offshore turbines. This could be seen as Britain being quite prepared to spoil the Irish environment because it was not permitted to spoil its own one. Britain is also prepared to receive energy supplies from Ireland and the worst part is that there is no financial agreement yet. It looks as if a commitment has been made to supply a certain level of energy to Britain, without agreeing how much. It is like selling a car to somebody without agreeing the price in advance. When will we know what financial arrangements will be made on foot of this memorandum of understanding? Does the memorandum of understanding explicitly commit us to a certain level of supply to the British Government, even though we have not reached any agreement on the financial arrangements?

Pat Rabbitte (Dublin South West, Labour)
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If Deputy Colreavy worked at it, he could not get the wrong end of the stick more perfectly than he has done there. How in the name of heaven can we agree a strike price until we know exactly what it is that we are trading? There is no template for this and nothing has been done.

Not one single turbine has been erected and no irrevocable commitments have been entered into. Nothing is agreed until everything is agreed. The financial terms are obviously at the heart of this issue. I do not know from where Sinn Féin's hostility to trading energy supplies with Britain comes. I have been told that the Sinn Féin Party does not have a difficulty in trading beef, pork, computers and so on with Britain. What is the problem with trading green energy supplies with it if it is economic for us to do so? We will assess whether it is economic for us to do so when the terms are agreed to.