Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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2. To ask the Minister for Communications, Energy and Natural Resources if discussions have begun with the relevant authorities as to the amount Ireland would receive from the export of energy from renewable sources following the signing of the memorandum of understanding with Britain; if so the amount they expect to receive; and if he will make a statement on the matter. [4552/14]

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I am troubled that there is so little information on the outworking of the memorandum of understanding with Britain on the export of renewable energy from the midlands. Will the Minister give an update on the current position?

Pat Rabbitte (Dublin South West, Labour)
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In January of 2013, the UK Secretary of State for Energy and Climate Change, Mr. Edward Davey MP, and I signed a memorandum of understanding on energy co-operation. That memorandum sent a strong signal of our shared interest in developing the opportunity to export green energy from Ireland to Britain and will result in completion of consideration of how Irish renewable energy resources, onshore and offshore, might be developed to the mutual benefit of both countries.

Following the signing of a memorandum of understanding, work is progressing with a view to entering an intergovernmental agreement with the UK in 2014. Regarding the development of the intergovernmental agreement, significant work streams are ongoing in the areas of project management, the intergovernmental agreement itself, European Union liaison, communications and stakeholder management, economic analysis, policy on renewables export and grid issues, regulation, legislation, and land and planning. The work that is being done by my officials on the development of the intergovernmental agreement with the UK is separate and distinct from the work being done by EirGrid on the development of the domestic electricity grid, a point that continues to be confused, sometimes deliberately, I suspect.

With regard to the development of the proposed export project, it is important to note that this must await the completion of an intergovernmental agreement, the putting in place of a renewable energy export policy and development framework, and the obtaining of planning permission for project proposals, subject to environmental impact assessment as necessary.

From an Irish perspective the potential benefits being examined include jobs created, community gain, interconnection benefits, corporation tax receipts and rates paid to local authorities. A full cost-benefit analysis is ongoing to determine if it is mutually beneficial for Ireland and the United Kingdom to enter an intergovernmental agreement in the coming months to facilitate trade in renewable energy. The amount of energy to be procured by the UK and the mechanisms for sharing the resultant economic benefits, including an appropriate return to the Exchequer, are among the matters to be addressed ahead of signing any intergovernmental agreement.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I am as wise as before I asked the question and I think the people who are listening are as wise as they were before I asked the question. I see companies buying and leasing land, and paying a good deal of money for it, obviously in the knowledge that whatever about changes to planning guidelines or permissions, those companies are going to make money from generating electricity that will be exported to Britain. There is a fundamental aspect here. The Minister said this work is separate from EirGrid and that people seem to be confused and that, sometimes, it may be deliberate. Is it not true that the transmission lines for the export of energy to Britain are not capable of being connected to the Irish grid and that they will never be used to supply electricity to Irish people, even as a standby?

Michael Kitt (Galway East, Fianna Fail)
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I will return to the Deputy after the Minister replies.

Pat Rabbitte (Dublin South West, Labour)
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It certainly cannot be the case that, on the one hand, we are building out and improving the grid, which has no relationship to the wind export project about which people are complaining, and on the other hand that the transmission system for the wind export project can never be connected to the Irish grid. It is one or the other. I say again, for the umpteenth time, that if there is not an intergovernmental agreement and unless the economics stack up for both countries, as with any trade agreement, there will not be a wind export project. The wind export project being worked on is dependent on an intergovernmental agreement and on the economics working out to the benefit of both countries.

Michael Kitt (Galway East, Fianna Fail)
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I thank the Minister.

Pat Rabbitte (Dublin South West, Labour)
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It is an entirely separate technology. The technology that will connect the wind export project to the British grid, if it goes ahead, is a sub-sea cable and an underground cable to wherever the electricity is being generated.

Michael Kitt (Galway East, Fianna Fail)
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I will come back to the Minister as Deputy Colreavy wishes to come in again.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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The fundamental problem is that we simply do not have a national strategy for energy in Ireland, and in the absence of a good national strategy, we have companies who are setting the agenda. I find it extraordinary that after three years of discussions in respect of the memorandum of understanding, the Minister cannot quantify what the benefits will be to this country. I am aware he has said that we will have reached our renewable energy targets by 2020.

I do not believe we reached them in 2011 and 2012. I understand that in December the Commissioner waved a yellow card at us, and that we could be fined €20,000 per day because of our failure to reach targets. I do not know if that is true but it was certainly reported. I would like the Minister's comments on it.

The fundamental problem is that we do not have a strategy. The companies are doing the running and setting the agenda, and we will pay for it either financially or in terms of lost opportunities. We will be exporting green energy that we need ourselves.

Pat Rabbitte (Dublin South West, Labour)
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We do not need it ourselves. If there was a question of domestic need, that would come first. We have capacity to generate more than what we need domestically. If we can find a market in which to sell the excess, why should we not open a new trade sector in green energy?

The process has not been under way for three years. I said in my formal reply that the memorandum was signed last January. I set out in my answer some of the very complex issues that must be resolved. There is no surprise at all that an intergovernmental agreement would take this kind of time. It is important that I, as guarantor for the Irish people, ensure there is a benefit for the Exchequer and State; otherwise there will not be in agreement. If I were rushing into an agreement, Deputy Colreavy would be accusing me of being hasty.

There is a national strategy in place but Deputy Colreavy fails to acknowledge that, as is his entitlement. I will be publishing a Green Paper on energy policy within the next six weeks or so and perhaps he and I can make a fresh start with that paper. I look forward to his input.

It is not reconcilable to allege we are improving grid transmission to accommodate the wind export project to Britain and, on the other hand, question whether we will ever be able to connect the wind export project technology to the domestic Irish grid. People must decide which side they are coming down on.