Dáil Éireann debate -
Thursday, 30 May 1991

Vol. 409 No. 3

Ceisteanna—Questions. Oral Answers. - Wind Energy Generating Projects.

Michael Finucane

Question:

6 Mr. Finucane asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these application were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applicants could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Paul McGrath

Question:

13 Mr. McGrath asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these applications were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applicants could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Louis J. Belton

Question:

18 Mr. Belton asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these application were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applicants could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Theresa Ahearn

Question:

23 Mrs. T. Ahearn asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these applications were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applications could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Gerry Reynolds

Question:

25 Mr. G. Reynolds asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these application were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applications could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

John Bruton

Question:

34 Mr. J. Bruton asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these applications were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applicants could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Paul Bradford

Question:

40 Mr. Bradford asked the Minister for Energy if he will outline his policy in regard to the provision of assistance for wind generation projects under the Valoren programme; if there has been a review of the Irish Valoren programme to date by or on behalf of the European Commission; if so, the results of this review; if he has received an application for such assistance from two firms (details supplied) in response to an invitation for tenders last October; if so, when these application were received; if planning permission has been obtained for the developments in question; whether time has been allowed after approval of one or other, or both of these projects for an environmental impact assessment to be done; if any committee is being set up to consider applications of this kind; whether any deadline exists under the terms of the Valoren programme for the commencement of the projects; whether any delay by him in considering these applicants could prejudice the success of the project in question; if terms exist for the sale of any energy generated by the project to the electricity grid; and if he will make a statement on the matter.

Mr. Molloy

I propose to take Questions Nos. 6, 13, 18, 23, 25, 34 and 40 together, all of which seem to be identical. There is something to be said about the need for reforming our procedures.

Mr. Garland

That is what I have been saying for a long time.

Mr. Molloy

I have strongly encouraged the establishment of a wind-farm in Ireland under the Valoren programme. Following the issue in October 1990 of an invitation to tender for the construction of Ireland's first wind-farm which could qualify for grant assistance of up to £3.9 million under the Valoren Programme, eight proposals were received on 30 November 1990 including proposals from the two firms to which Deputies have referred. A rigorous appraisal of the proposals was carried out by a Departmental assessment team specifically established for that purpose. The assessment team had available to it independent outside experts in the wind energy area. Following this appraisal the proposal from Renewable Energy Ireland Ltd. to construct a wind-farm at Bellacorick, County Mayo was accepted. Planning permission has been granted by Mayo County Council on 22 January 1991 following submission by the company of an environmental impact assessment and other relevant data.

There is no specific requirement under the Valoren Programme for commencement of construction but the aim is to have the wind-farm operational by the end of August 1992. I am satisfied that there is sufficient time available to complete all aspects of this project. Discussions are taking place at present between the company and the ESB to settle the terms for supply of electricity from the wind-farm to the national grid.

As regards the question of review by the European Commission of the Irish Valoren programme the position is that such a review was carried out early in 1990. The results of the review were not provided to my Department. However a revised programme which took account of new possibilities in the areas of wind energy and geothermal energy was approved by the Commission in October 1990.

Miss Flaherty

Can the Minister indicate whether he will take an interest in ensuring that the terms which the ESB will offer to this project will be such that it will assist in its development and its success because, as the Minister and I know and I am sure he will confirm to the House one of the problems which has stymied earlier similar developments has been the inability to get a decent price from the ESB?

Mr. Molloy

Discussions on the unit price payable have taken place between the company and the ESB. While the final terms have not been settled I am satisfied at this stage that the ESB are approaching the matter in a fair and reasonable way. The Deputy can have my assurance, in view of the public support I have given for the project, that I will take a keen interest in it.

Mr. Garland

Would the Minister agree that this is an extremely important project in terms of our programme for renewable energy and that what is basically a bookkeeping exercise between this new company and the ESB should not stand in the way of this project going ahead? I would ask the Minister to undertake within, say, a period of one or two months to give the ESB an ultimatum. If agreement is not reached in that time the Minister should impose some solution on the ESB and get the show on the road.

Mr. Molloy

I suggest that we all keep our hair on. There is an impression here that a big dispute is taking place in relation to this matter. Discussions are taking place in the normal way and I am satisfied that the ESB are approaching this matter in a fair and reasonable way and I expect that it will be settled in a short period of time.

Mr. Garland

How does the Minister define "a short period of time"? Will we still be talking about this next October or November? This whole project could be shelved and it could disappear with the intransigence of the ESB who are notorious for their lack of interest in any renewable energy project. Can a time limit not be put on it?

Mr. Molloy

I am not two years in this Department yet. This is an initiative which I took. There would be no wind energy project in County Mayo or anywhere else had I not taken the initiative. Obviously, having done so, I am keener than anybody to ensure that this project proceeds as quickly as possible and I am happy that it has done so. In order to inform myself as best I could before arriving at the decision regarding which of these proposals would be recommended, I took the trouble of travelling to California and to Denmark.

Miss Flaherty

My heart bleeds for the Minister.

Mr. Molloy

It is a long distance away.

Miss. Flaherty

It is his job.

Mr. Molloy

The Deputy should not trivialise everything.

Miss Flaherty

It is the Minister's job.

Mr. Molloy

Fine Gael have a new approach, to turn everything into some kind of a comedy.

Mr. J. Bruton

There is nothing new in the sanctimoniousness of the Progressive Democrats.

Mr. Molloy

Perhaps the Deputy would work on his own image a little more before he starts advising us. I am very keen to see this exciting project go ahead. I think we have made a very wise decision and I hope everything works out as we expect. I can assure the Deputy there will be no unnecessary delay.

Mr. J. Bruton

Would the Minister consider it useful to introduce an amendment to the Electricity Supply Acts in order to require the ESB to change the pricing formula they use for electricity bought from sources outside the ESB to ensure that these are not priced on a monopoly basis but on a basis that takes due account of the need to promote competing sources of electricity supply? Would he agree that this issue is quite important in view of the recent electricity supply strike?

Mr. Molloy

I do not believe there should be any need for legislation. I am anxious that the ESB would purchase electricity from private generators, whether through hydro-electricity, a wind energy project or even a wave, if it is developed and becomes viable. I have initiated discussions in the Department with a view to establishing a formula for the determination of the price to be paid for hydro-electricity. If necessary I will do the same in regard to wind energy and any other sources of energy that arise or any other producer who wishes to sell electricity into the ESB system. I am doing that because of my concern to ensure that we as a Government make a commitment to renewable energies. We must make our contribution to cleaning up the world global environment. That policy has the support of all parties in this House and of the community. One must bear in mind that one can produce electricity at its cheapest by using coal. If one uses a fuel to generate electricity which is dearer than coal one would be imposing a cost penalty on the economy. The State should support that in its energy policy and work out some reasonable method of determining what the price should be. In the case of hydro we are at the point where it is practically determined how it should be compiled. I hope there will be no necessity to bring in legislation to ensure this pricing policy is implemented by the ESB, but if I find it is necessary I am glad to know I will have the support of the Fine Gael Party in the matter.

Mr. J. Bruton

Would the Minister not agree that, while the efforts he is making are entirely laudable and are supported, to rely on a formula agreed between officials in his Department and officials in the ESB would not have the guarantee necessary for the making of capital investment in the sense that people realise that officials can change and, therefore, formulate change? People who are asked to make a substantial investment in a new electricity generating source would like to know that the formula cannot be changed at the whim of officials or because a particular Minister moves to another portfolio or ceases to be a Minister. Therefore, there is a strong case for enshrining the formula when it is fixed — I am not asking the Minister to rush this matter — in legislation. He should agree in principle at least to consider putting the formula into legislation.

Mr. Molloy

I will consider that.