Vol. 542 No. 3
18 Mr. Gilmore asked the Minister for Public Enterprise her views on whether the price capping of wind energy generation under AER 5 is severely restricting the development of renewable energy here; and if she will make a statement on the matter. [24123/01]
The terms and conditions of AER V incorporate two recommendations from the report, Strategy for Intensifying Wind Energy Deployment, by the Renewable Energy Strategy Group which included a representative of the Irish Wind Energy Association. The group recommended that AER V should be restricted to projects with planning consent and should incorporate a fixed price offer based on prices delivered in AER III.
The competition is confined to projects with planning consent and the price caps are based on the most efficient price in each category paid by the ESB under AER III. These prices were adjusted upwards for justified reasons. At the launch of AER V in May this year, I stated publicly that my preference was for a keen fixed price. I also explained that in the course of informal discussions with the European Commission on the state aids element it was indicated that a fixed price procedure could raise complex competition issues which could take up to 18 months to resolve. Alternatively, it was indicated that the inclusion of a bidding element would be less contentious and more in keeping with current State aids guidelines. It was indicated that a final determination could be reached in about six months in such circumstances.
On this basis I accepted the competitive option to ensure early progress at the national level. Applicants are now free to bid at or below the cap prices. I am confident product will be delivered in AER V and a subsequent support measure will ensure delivery of the overall 500 MW target by 2005.
