Written Answers. - Electricity Generation.
Michael Creed
Question:
97
Mr. Creed
asked the
Minister for Public Enterprise
her Department's policy in respect of wind energy; the role of the Commission for Electricity Regulation in this regard; the procedures regarding securing an alternative energy requirement licence; and if she will make a statement on the matter.
[3905/00]
Policy initiatives relating to the electricity sector generally are within the remit of the Minister for Public Enterprise. The Commission for Electricity Regulation has an advisory function in relation to policy. The commission is otherwise responsible for regulating the emerging liberalised electricity market in accordance with the Electricity Regulation Act, 1999.
In September last, I published a Green Paper on Sustainable Energy as part of my policy review of measures for energy efficiency and the increased use of renewable resources. I established an increased target of 500 MWe of additional renewable energy based electricity generating plant to be procured in the period 2000-05.
The Act partially liberalised the electricity market for producers of electricity by conventional means from 19 February next. In the case of electricity produced from renewable energy sources, the entire retail electricity market is liberalised on the same day. The 500 MWe target will be met through a combination of alternative energy requirement competitions, projects successful in related European Commission sponsored programmes, Fifth Framework, Altener & INTERREG, and projects built to take market advantage from the liberalisation of the entire electricity market for electricity generated from renewable energy sources.
I also established a renewable energy strategy group to examine all aspects of, and obstacles to, the further deployment of renewable energy technologies, including wind. The group's initial report, which will concentrate on wind energy, is due for completion in the middle of the year. I expect to announce a further competition, under the AER programme, for rights to generate and sell green electricity to the Electricity Supply Board shortly thereafter.
Heretofore, the right of AER winners to enter into power purchase agreements with the ESB was based on an administrative arrangement between the ESB and my Department. Section 39 of the Act established,inter alia, a legal base to order the ESB to take electricity from generating stations using renewable forms of energy chosen as a result of competitions organised by me or the European Commission. This provision gives legal certainty to the previous administrative arrangement.
The Electricity Regulation Act also made provision for the award, by the commission, of authorisations to build electricity generating stations and licenses to generate and supply electricity. The commission is, subject to the Act, independent in the performance of its functions. Applications for authorisations and licenses should, therefore, be addressed directly to the commission in the first instance.
