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Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Electricity Generation.

Olivia Mitchell

Question:

186 Ms O. Mitchell asked the Minister for Public Enterprise the measures she intends to put in place to deal with the barriers to the development of rural and local community-based wind farms and specifically those articulated by Meitheal na Gaoithe, namely grid connection costs and market barriers. [8584/02]

I established the renewable energy strategy group in November 1999 to consider the obstacles that could impede the further development of our wind energy resources. In its report, Strategy for Intensifying Wind Energy Deployment, the strategy group recommended, among other things, that a small-scale wind energy category should continue to be supported under my Department's alternative energy requirement programme. This is the typical project promoted by Meitheal na Gaoithe.

In AER V, I reduced the upper project size for the small-scale wind energy category from 5 MW to 3 MW and I prohibited anybody with an interest in larger scale projects from availing of the higher prices offered in the small scale category. This has allowed bona fide small scale developers to enter the competition with a reasonable expectation of success. I announced the results of AER V in February of this year. I am delighted that 19 projects were successful in the small sale wind energy category. This represents a total installed capacity of 36 MW with projects ranging in size from 0.65MW to 3MW installed capacity. The successful applicants, including local companies, community groups, farmers, and individuals, have been informed that their projects have been selected to receive a conditional offer of a contract to supply green electricity to the ESB.

I have already announced my intention to move to the next support measure for renewables, AER VI, in the coming months. I will consult the various industry representative associations with regard to the terms and conditions of this scheme, including continued support for a small-scale wind energy category in the competition. The market mechanism applied – competitive tendering – is essential to comply with the European Commission's clearance of the power purchase agreements which it has determined constitute State aid. Grid connections are a matter for the ESB or Eirgrid in the first instance. In the event of any dispute the Electricity Regulation Act, 1999, allows for appeals to the Commission for Electricity Regulation and its decision is binding on the supplier under section 34. I have no statutory function in the matter.

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