Vol. 538 No. 4
52 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if she has had any role in the commissioning of a report by a company (details supplied) on the electricity and gas supply situation; and if she will make a statement on the matter. [13555/01]
I understand that the Deputy is referring to the Energy Security and the Information Society Report commissioned from DKM Economic Consultants.
My Department, Forfás and the Taoiseach's Department, following a competitive tender process, recruited DKM consultants in September 2000. DKM's bid was the most economically advantageous and cost £54,877.
The objective in engaging DKM was to quantify and assess the impact of investment in co-location, complex web hosting, web farming, advanced data processing and similar e-commerce related facilities on the energy demand and supply situation in Ireland. DKM was also asked to advise on the appropriate investment, regulatory and legislative measures needed to ensure that Ireland remained competitive in attracting and retaining this type of investment.
The report was finalised at the end of January and its recommendations studied. The report recommended, inter alia, a full deregulation of the CHP market. I have done this through section 9(f2>a)(ii) of the Electricity (Supply) (Amendment) Act, 2001.
The report has been circulated to all the relevant Government Departments and to EirGrid and the Commission for Electricity Regulation. It is also available on the Department's website.
53 Mr. Wall asked the Minister for Public Enterprise her views on the extension of the national grid to facilitate sea based generation by wind; and if she will make a statement on the matter. [18056/01]
I fully support the development of our indigenous energy resources, on or offshore, which have positive environmental and economic benefits. In October last, together with Sir Reg Empey MLA, Minister for Enterprise, Trade and Investment, I published a joint study of the offshore wind energy potential, Assessment of Offshore Wind Energy Resources in the Republic of Ireland and Northern Ireland. One of the headline findings in that report was that at a minimum distance of five kilometres offshore in a maximum water depth of 20 meters there is a potential resource to contribute in excess of 30% of the island's electricity consumption.
Some months previously my colleague the Minister for the Marine and Natural Resources, Deputy Fahy, had published administrative and licensing arrangements for offshore exploration of possible offshore sites. There are currently four companies with licenses to explore the suitability of seven offshore sites for the construction and operation of wind parks to generate electricity.
The costs of connecting offshore wind parks to the national grid is a matter in the first instance for EirGrid and the Commissioner for Electricity Regulation. Should any support measure specific to offshore development arise it will require prior clearance by the European Commission under State aid rules. A standard condition of State aid applications is the submission of data on eligible costs and levels of aid intensity. This data can be estimated only under reasonable assumptions after the current exploratory works are concluded.
I will continue to track progress on the exploratory work. It is my intention to discuss appropriate support measures for the development of the industry once the research data are submitted to me.
