The Government is committed to producing 30 per cent of electricity by renewable energy by 2020, Minister for Marine and Natural Resources Noel Dempsey told the Dáil.
"Some think that this target is too conservative. Others argue about the significant technical and competitive cost challenges. I believe that we should set the bar high and back up realistic ambition with concrete measures."
Opening a series of statements on the Green Paper on energy, Mr Dempsey said renewable energy was the key to sustainability and future security of supply.
He repeated that the Government recognised the fundamental role played by the ESB in economic and social development, and the strategic value of maintaining it as a strong and commercially-viable company."I have already stated that the Government does not favour the fragmentation of the ESB."
He said significant investment in power generation was needed.
"This presents the opportunity to break out of the current cycle and deliver more competition, more innovation and more choice. Structural reform is necessary in the interests of the market, of the consumer and of the ESB itself. We intend to deliver that reform, working with all players."
Fine Gael's Bernard Durkan said there was a need to serve the customer in a competitive, reliable, cost-effective way. While welcoming the publication of the Green Paper, he said it was vague in certain areas.
Labour's Tommy Broughan accused the Government of creating a lengthy policy vacuum relating to energy. "Indeed, it is only in the last few years that the Government has, very belatedly, begun to address the issue."
Eamonn Ryan of the Green Party said the challenges to be faced included the imminent peak, if it was not already there, in global oil production.
Martin Ferris of Sinn Féin said the State was a hostage to instability, not of its making, because of oil prices.