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Dáil Éireann debate -
Wednesday, 4 Apr 2001

Vol. 534 No. 1

Written Answers. - Electricity Generation.

David Stanton

Question:

123 Mr. Stanton asked the Minister for Public Enterprise her views on the renewable energy certificate system; the way in which the system operates here; her future plans in this regard; and if she will make a statement on the matter. [10173/01]

There are three basic measures to support electricity production from renewable energy sources. They are competitive tendering, fixed feed in tariffs and green certificates trading.

The alternative energy requirement programme administered by my Department to support the building of a renewable energy based electricity generating plant has relied on competitive tendering to date.

Competitive tendering has the advantage that it minimises the additional cost of purchasing each unit of electricity from renewable energy above its equivalent produced from a conventional source. A high fixed feed in tariff system has the predictable impact that it will increase the costs of procuring renewable energy based electricity. A certificates trading scheme would require primary legislation to create demand for the certificates and the establishment or extension of a regulatory regime to monitor trading, compliance and to prevent fraud which would also increase costs.
The renewable energy strategy group in its report to me recommended a modified fixed feed in tariff scheme for the next AER competition, AER V, based on competitive prices delivered in AER III. The terms and conditions of the competition are under active consideration and I will make an announcement shortly.
I have no proposals to introduce legislation to establish a certificates trading scheme at this time.
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