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Dáil Éireann debate -
Wednesday, 30 Jan 2002

Vol. 547 No. 1

Written Answers. - Electricity Generation.

Ulick Burke

Question:

189 Mr. U. Burke asked the Minister for Public Enterprise the extent to which the cost of connection to the national grid will be borne by the ESB and the Government with regard to the proposed Eirtricity windfarm off the coast of County Wicklow; and if she will make a statement on the matter. [2152/02]

In replying to the Deputy I would like to put in context the long-term Government support for renewable energy in a range of technologies such as wind, landfill gas and small scale hydro. In the Green Paper on Sustainable Energy, which I published in September 1999, I set a target of an additional 500MW of renewable energy up to the end of 2005. Government support for renewable energy technologies in the form of Alternative Energy Requirement (AER) competitions has been manifest over the past number of years. Next week I will be announcing the winning bidders in the fifth Alternative Energy Requirement competition (AER5). All winning projects already have full planning permission and, together with the market access they are in a position to avail of under AER5, they will be proceeding to build renewable generating stations over the next year or two. I have also given a commitment to the renewable energy industry that AER6 will follow on quickly.

I have pursued a policy of positive support for renewable energy technologies and particularly wind energy. To date this has concentrated on on-shore projects.

In relation to offshore development there are a number of developers who have expressed interest in offshore wind projects. However, a number of major issues arise and require research before final decisions can be made. These include the following: assessment of the capacity of the electricity grid system to accept large volumes of electricity generated by wind farms – the Commission for Electricity Regulation has just recently announced the commissioning of a comprehensive study of this issue which is expected to be completed in six months; a study of the costs associated with offshore wind developments in Irish conditions – some work has already been carried out in a study completed by Kirk, McClure, Morton entitled, Assessment of Offshore Wind Resources in the Republic of Ireland and Northern Ireland and this further study will allow a comparison of the cost of offshore generated electricity against the known costs of onshore generated electricity; costs of connections of windfarms of such substantial capacity – this issue will need to examined by Eirgrid and regulated by the Commission for Electricity Regulation; and the need to examine and evaluate the support mechanisms in place for offshore projects in other European countries such as Denmark and Holland.

My Department, in conjunction with the Irish Energy Centre, and in consultation with other relevant bodies and agencies, is undertaking the necessary work to develop a consultation document which will be put out to public consultation. An appropriate strategy will then be brought to Government for decision. The Deputy should be aware that, should it be decided that supports are desirable either in terms of market support or a direct grant in respect of connection costs to any particular project, such supports would be subject to state aids and competition rules.
In relation to the costs of connection to the electricity grid the position for any developer, including Eirtricity, is that the terms for connections to and use of the transmission or distribution systems are addressed in Section 39 of the Electricity Regulation Act, 1999 (No. 23 of 1999). The cost of any connection to the electricity network is a matter for discussion between Eirgrid and the customer requesting the service in the first instance. In the event of a dispute regarding the making of an offer, the terms offered or the proposed charges the customer may seek the intervention of the Commission for Electricity Regulation and Eirgrid is bound by the Commission's determination.
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