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.