Dáil Éireann debate -
Thursday, 10 May 2001

Vol. 536 No. 1

Written Answers - Alternative Energy Projects.

Trevor Sargent

Question:

62 Mr. Sargent asked the Minister for Public Enterprise her views on whether the deployment of 200mw in the forthcoming AERV would produce approximately 650 million units of electricity from wind per annum; her further views on the resultant saving of almost £14 million in fuel imports per year; if so, her views on whether to ensure the success of AERV and our compliance with our Kyoto obligations, at least half of this saving should be assigned to support AERV; and the reason this level of support should not be made available. [13417/01]

Trevor Sargent

Question:

63 Mr. Sargent asked the Minister for Public Enterprise her views on whether sites with moderate wind speeds of eight metres per second will need to be used if the Green Paper targets of 500mw are to achieved; if so, if she can confirm the price to be offered in AERV will allow such sites to be financed and made a reality; her views on whether a price of approximately 4p for this indigenous power source would be needed and would be average to low by European standards; her further views on whether a capacity of at least 50% of this 500mw should be accommodated within the AERV scheme if AERV is to make a realistic contribution to the Green Paper target. [13418/01]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 62 and 63 together.

I would not disagree that 200mw of renewable energy based electricity equates to more than 650 million units of electricity. This is not to say that AERV will definitely seek 200 MW of capacity. AERV will be conducted in accordance with Directive 93/38/EEC, as last amended, on procurement of electricity. Legal advice available to me is that no publication of the contents of AERV should take place before the date of dispatch of the notice to the Official Journal in compliance with the provisions of Article 21(1)(f2>a) of the directive. As a notice will be dispatched shortly, I am therefore precluded from commenting definitively on the capacity which will be offered in AERV at this time.

The AER programme is an intervention in the market to support the production of electricity from renewable energy sources. As such it constitutes a state aid which must be cleared by the European Commission under state aids rules. The European Commission's Community Guidelines on State Aid for Environmental Protection – 2001/C 37/03 – clearly signals that any payment above an open market price must be cost based, proportionate and justified. In addition section 39 of the Electricity Regulation Act provides that the additional costs to the ESB of purchasing green electricity above an open market price will be charged to electricity consumers generally. There is therefore a double imperative to ensure the tariff paid to generators is cost oriented.

Again, I am precluded from making any definitive statement on the detail of AERV, including prices other than to say, in general terms, that the prices which will be accepted in AERV will be what is necessary to provide a reasonable business case to deliver the capacity announced and to ensure investor confidence.

In AER III the failure of some projects to achieve planning consent was a significant impediment identified by the renewable energy strategy group in its report Strategy for Intensifying Wind Energy Deployment. I am considering the report's recommendation to address this impediment but again I am precluded from making a definitive statement on a term of AERV at this time.