Dáil Éireann díospóireacht -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Written Answers. - Electricity Generation.

Ciarán Cuffe

Ceist:

102 Mr. Cuffe asked the Minister for Communications, Marine and Natural Resources the timetable for investment in the national power transmission grid; when the outline development programme is likely to be published; the criteria which will be used for the selection of areas to be developed; the likely cost structure that will apply to power generation companies for transmission charges on the grid; and the way in which wind energy suppliers are likely to be able to compete in view of the fact that the best wind resources are in locations with the weakest grid connection and that existing power generation facilities had a transmission connection provided free of charge. [16015/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

Investment in the electricity transmission system is an ongoing operational matter for ESB National Grid under the broad supervision of the Commission for Energy Regulation, CER. ESB's five year network upgrading programme, costing approximately €3 billion, is well under way. In due course, this will yield major improvements in the network system thereby facilitating enhanced capacity and quality of service capability.

In accordance with section 38 of the Electricity Regulation Act 1999, ESB National Grid, in its capacity as transmission system operator, is required to prepare a forecast statement in a form approved by the Commission for Energy Regulation. The forecast statement presents factual information on, and projections of, electricity demand, generation, the transmission network and interconnection with other electricity systems. It also includes the results of analyses that indicate the most suitable locations for the connection of new generation or customer demand. Forecast statements cover a seven year period and are revised on an annual basis. The most recent forecast statement was published earlier this year and it covers the period mid-2003 to end 2009. This document is also accessible at website www.eirgrid.com.

In accordance with section 35 of the Electricity Regulation Act 1999, the Commission for Energy Regulation approves the proposed ESB charges for use of and connection to the transmission system. Site location for wind powered electricity generating stations at this time is a matter for individual developers. Current county development plans do not signal to developers or the network operator the preferred locations for wind powered generating plants from the planning perspective. However, as the compliance of county development plans with the national spatial strategy evolves, clearer signals of preferred areas for wind powered electricity generation stations, from the planning perspective, should emerge. In the meantime support for all renewable energy based electricity generation plants is likely to depend on State intervention to offer dedicated support to selected projects. Up to now the alternative energy requirement, AER, scheme has been the main intervention.

In addition, in November 2001, a steering group was appointed to prepare an implementation programme for a grid upgrade development programme to address a potential impediment to renewable energy development arising from the grid operator's approved charging mechanisms for connections. The steering group's report was published recently and can be accessed at the Department's website www.dcmnr.ie/energy. The steering group identified five clusters of renewable energy projects which could qualify for investment support under the ESIOP national development plan. An agreed charging mechanism was recommended by the steering group. The developers identified in each cluster have been notified and asked to contact the ESB to explore the potential use of the programme. Simultaneously my Department is in consultation with the grid operators and CER about formalising the grid upgrade development programme. In liberalising a market which has evolved over more than 75 years, it is not possible to fully disentangle the advantages and disadvantages of incumbency to the extent implied in the latter part of the question.