Vol. 498 No. 3
6 Dr. Upton asked the Minister for Public Enterprise the further contact, if any, she has had with the winning applicants of the wave to energy pilot proposal; if she has satisfied herself that the conditional offer will be acceptable to the project proposers; and if she will make a statement on the matter. [26900/98]
I refer the Deputy to my reply to Parliamentary Question No. 34 of 10 November 1998 in which I stated that WaveGen Ireland, the winning applicant in the wave to energy competition, had written to me regarding the conditional offer of a power purchase contract for its proposed wave energy project. My Department has replied to the company on the issues raised and their response is now awaited.
I raise the issue again as I am concerned that there is a timespan within which the company must draw down and spend the funding made available to it by the EU through the Minister's office. Will the Minister indicate how much time is left to the company in this regard? Will he consider phoning the company to see if the conditions he has set out are acceptable or if they might be varied and if there is any way the matter might be progressed, given that he has indicated on a number of occasions that he is supportive of developing wave energy and carrying out the necessary research?
I reiterate my support for wave energy and all forms of renewable energy which we all have an onus to promote. The things the Deputy suggested have all been done. Nobody more than Deputy Stagg knows how these competitions operate. Indeed he was very proactive in promoting the competitions as a Minister of State. The independent evaluator of the appropriate adjudicating body, the operational programme monitoring committee, has expressed a view that this project is more suitable to R&D than the type of project before us. This is regrettable but factual. In other words they are saying that the technology has some catching up to do with regard to wave energy. The Deputy will also be aware of a rather unfortunate incident in Scotland with a similar project. Despite our insistence and desire to promote this particular type of project, we would like to see one wave energy project up and running. This is why we have endeavoured to find a way forward in this regard.
It would appear that funding is not available. In order to progress the situation the winning project by WaveGen Ireland, a Scottish registered company, was informed that funding was not forthcoming from the European Regional Development Fund but that the Minister was prepared to consider authorising a 15 year power purchase agreement with the ESB at the bid price if it proceeded with the project. The company asked further questions which contained legal implications. We sought legal advice and returned to the company in late November. We are now waiting to hear further from it.
I am very worried by what the Minister has said. This monitoring committee is another quango outside the democratic process which dictates to people elected to rule Ireland and Europe. This is the third part of the funding for alternative energy which they have successfully scuttled. Is the Minister and the Department sufficiently proactive in securing the original opinion of the masters of the monitoring committee, which is only a sub-committee and lower level body? The masters of the monitoring committee originally sanctioned the proposals. They have now scuttled the wave energy and waste to energy projects. Funding has been withdrawn from both. I am sure the Minister of State is doing his best but when the money is taken out of particular alternative energy projects, it should at least go to other projects in the alternative energy area. The Minister of State will agree there are plenty of sections in his Department who will grab that money for their projects if they are allowed. I commend the Minister of State on getting a system in place to allow this project to go ahead and I urge him to continue.
I empathise with the frustrations expressed by the Deputy on this. The European Commission has an important presence on that committee, and it pays the piper. It is not prepared to pay, but we must motor on with this project. We have not given up on wave energy or on biomass. We hope these projects will still come to fruition.
The Minister of State is aware that the site was proposed for an area in west Clare that is very underdeveloped and quite close to the ESB station in Moneypoint. It would be relatively easy to link the networks. In the absence of European funding — there was approximately £1 million involved — the project is unlikely to proceed on the scale originally proposed. Are there alternative ways to raise funds for this project to go ahead according to the original scale? Will the Minister ask the ESB to enter a joint venture with the company involved to put the station in place? That would give this project the opportunity to proceed.
Deputy Daly has discussed this issue with me on a number of occasions. As the proposed site is in his constituency, it is obviously close to his heart. A number of reports have advocated this type of energy production on the western seaboard, and experts have noted the suitability of the waves there. I have indicated to the Deputy that is still ongoing, and I hope that WaveGen, the company concerned, will find a way to proceed. I expect to hear from it as we responded to its latest questions on 26 November. I hope when it evaluates our responses it will find a way to proceed. If there is a way we can assist it, or if we can assist Deputy Daly in assisting it, we are very anxious to find it.
Arising from the Minister of State's comments on support for wave power and the 15 year purchase agreement, is he aware that the green energy sector is very concerned by the Bill that has been circulated, particularly sections 13 and 27? Will he discuss the need to protect that sector and those sections of the Bill with the Minister?
Yes.
Do the Minister and Minister of State talk to each other?
Yes, we had a conversation about that matter a month ago.
The Minister sends the Minister of State to the functions she does not want to go to and keeps the best ribbon cutting for herself.
The Minister of State should not allow himself to be blown off course.
There will be amendments tabled for that Bill to account for the interests of the green energy sector.
Does the Minister of State agree that if the British Government had taken an approach to the development of nuclear power similar to the one we are taking to the development of renewable energy, it would probably never have got off the ground? Is it possible for a research and development project to be recognised as developing into a commercial project under the European Commission rules on which we depend for funding? Can it be argued that although this is at a developmental stage it has a commercial life in prospect? Is the Minister of State saying Exchequer funding could be made available? Has any provision been made for that funding?
No, Exchequer funding has not thus far been made available. I hope the constraints we are under as a result of our commitments under the Kyoto Protocol——
Like radon gas.
This is a totally different issue.
The Minister of State was not at the committee meeting on this. He hung the Minister out to dry.
I did not notice being left out to dry.
I am endeavouring to deal with Deputy Sargent's worthwhile question.
It is Deputy Sargent's issue.
I hope the Government's motivation will help us to meet our Kyoto commitments. The Minister for Finance's coffers will be strained if we incur a carbon bill later as a result of measures we do not take now. I aspire to drive this policy and will be seeking to go down that road.
I asked if there was a false dichotomy between the research and development project and commercial project.
This is a different question.
In the context of the competition, which has strict legal conditions, those who allocate the funding said that was not on. We can only suggest that this be looked at in the context of a research and development project. I would prefer to stay with this and get it up and running.
