Dáil Éireann debate -
Tuesday, 7 Oct 2003

Vol. 571 No. 4

Written Answers. - Electricity Generation.

Ciarán Cuffe

Question:

132 Mr. Cuffe asked the Minister for Communications, Marine and Natural Resources further to the European Court of Justice decision of 24 July 2003 with regard to the Altmark trans case, removing restrictions on states providing for public service obligation contracts, if he will allow for further contracts to be assigned to those unsuccessful bidders into the AER VI support mechanism above the additional 140 MW of contracts that he announced in August 2003. [22171/03]

Ciarán Cuffe

Question:

136 Mr. Cuffe asked the Minister for Communications, Marine and Natural Resources the level of renewable wind energy supplies which he views can be catered for within the existing national electricity grid; his views on the analysis of the Irish Wind Energy Association of the Garrad Hassan report that the current grid system could carry 2,000 MW of renewable power supplies in view of the fact that 3% restraints would apply to wind farms with the summer period; and if he has issued strategic directions to the energy regulator or to Eirgrid regarding the continuing investment in the national grid to ensure that the future grid will be able to carry a larger percentage of renewable power. [22170/03]

Joe Sherlock

Question:

137 Mr. Sherlock asked the Minister for Communications, Marine and Natural Resources his views on the recently published Garrad Hassan report into wind energy; and if he will make a statement on the matter. [22068/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

I propose to take Questions Nos. 132, 136 and 137 together.

By letter dated 12 September 2003, my Department officials informed the EU Commission that the AER programme appeared to be outside the scope of EU state aid rules when tested against the judgment of the European Court of Justice decision in Altmark. The European Commission responded by letter dated 26 September that in its view the state aids rules continue to be applic able and recommended that we should continue to pursue state aids clearance. The Commission cautioned that if Ireland proceeds to allocate the additional capacity proposed under AER VI without state aids clearance it will commence anex officio investigation. My priority is to get the necessary clearance for the additional capacity proposed in AER VI as soon as possible.

The publication of the Gerrard Hassan report on the impacts of increased levels of wind penetration on the electricity systems of the Republic of Ireland and Northern Ireland is welcome and indicates the short-term constraints to the greater deployment of wind energy technology in the electricity market using the existing AER mechanism. I consider the study's findings fundamental to the co-ordinated growth of our wind energy electricity generating sector. Prior to this study being commissioned, little work had been published quantifying the network constraints on future Government targets to support additional contributions from wind energy technologies in the electricity market in the medium to long-term. This study goes some way towards addressing this deficiency and identified areas where further development work is required. I have recently asked the Commission for Energy Regulation to examine the study and other available documents with a view to advising me as definitively as possible about future options. In addition, Sustainable Energy Ireland (SEI) runs programmes supporting renewable energy research and is, in collaboration with the Commission for Energy Regulation and other key stakeholders, directing research effort in this regard. The report concludes the amount of wind generation capacity which could be accepted on to the network by the year 2005 is 790 MW. My current proposals for AER VI together with AER V contracts and existing wind-powered plant will take the potential wind powered capacity to 800 MW approximately.

The IWEA did suggest if additional AER VI winners were required to constrain at certain times the capacity which could be connected would increase. However, this would constitute a material change to the terms and conditions of AER VI. In addition, Sustainable Energy Ireland advises me that while increased levels of penetration are theoretically feasible there are many changes to codes, practices, financial and legal arrangements and regulatory structures that would be required before any decision could be reached. The additional 140 MW I propose to allocate in AER VI is significant and is as far as I can go for several reasons including the additional cost to the customer levy; the constraints detailed in the CER commissioned Garrad Hassan report as they impact on the terms and conditions of AER VI; the advice I have requested from CER on the study; the research currently under way by SEI in collaboration with CER and Eirgrid, and potential impacts on future North/South co-operation in the electricity market.

In response to the query about strategic directions regarding the electricity network, the position is I have no statutory authority to give directions to the Commission for Energy Regulation or to the transmission system operator in relation to investment in the national grid. I am satisfied the impediments now facing the wind sector are short-term. The studies now under way will contribute significantly to the alternative solutions. There will be ample opportunity for disappointed applicants in AER VI to participate in future support programmes which I will announce after concluding a public consultation programme.