Vol. 472 No. 5
13 Ms O'Donnell asked the Minister for Transport, Energy and Communications if he will give details of the projects for which funding has been approved under the economic infrastructural programme for wind energy hydro biomass waste to energy and wave energy developments; and if he will make a statement on the matter. [23481/96]
25 Mr. Clohessy asked the Minister for Transport, Energy and Communications if he has completed the review of strategy in relation to renewability of resources; and if he will make a statement on the matter. [23493/96]
33 Mr. Deasy asked the Minister for Transport, Energy and Communications the cost effectiveness of wind farms in generating electricity; and the plans, if any, there are to provide these wind farms in Ireland. [23019/96]
I propose to take Questions Nos. 13, 25 and 33 together.
Overall, a total of £15 million in European Regional Development Fund support was made available under the 1994-99 Economic Infrastructure Operational Programme, EIOP, for the development of indigenous renewable resources.
The money was originally allocated for the first alternative energy requirement scheme, AER1. However, as it turned out, this support was not required as there was a sufficient number of project applicants who did not require grants to fulfil and indeed exceed our indicative target. In total, the AER1 initiative secured offers of contract for 111MW broken down as follows: wind, ten projects (73MW); hydro, ten projects (4MW); landfill gas and waste, six projects (12MW); and combined heat and power, eight projects (22MW).
The current price payable to AER1 renewable energy developers is 4p pr k W/hr, unit, produced. This unit cost is one of the most competitive in the EU and compares very well with the unit production costs of energy from other sources. For instance, according to the TERES study existing coal plants have a unit production cost of 3p while new coal plants can be 4.4p. Nuclear can be as high as 6.6p per unit.
Additionally, if the external costs associated with these other fuels are internalised, renewable energy becomes even more attractive. For instance, the Bellacorrick windfarm could reduce carbon dioxide emissions by a minimum of 12,000 tonnes per annum, sulphur by 160 tonnes and nitrous oxides by 65 tonnes.
I will shortly announce a competition to secure an additional 100MW of renewable energy up to the end of 1999, including 90MW from wind. I have set a price cap of 3.9 per unit for this competition and I expect to receive bids at prices below the 3.9 cap price.
The Deputy may be aware of the further initiative I took in December 1995 when I launched the competitive tendering scheme, AER2, to secure an electricity generating plant of up to 30 megawatts using biomass or waste as represents 50 per cent of the EIOP, renewables measure, is available in respect of this project.
