Dáil Éireann Debate, Tuesday - 25 May 2004
234 Mr. Murphy asked the Minister for Communications, Marine and Natural Resources his views on the fact that Air Grids assessment that wind energy will cost up to 25% extra to the end user; and if he has done anything to independently assess this prediction. [15623/04]
View answerThe establishment of future targets and support mechanisms and the associated additional costs to increase the production of electricity from renewable energy sources are a matter for Government on my recommendation. As part of that process my Department, in consultation with Sustainable Energy Ireland, will advise on costs. My view is that until future targets and support options are settled the associated costs cannot be stated beyond very general assumptions.
At end 2003 I invited public comment on future targets and support mechanisms for renewable energy technologies in electricity production. Respondents were also requested to cost all proposals. The emphasis on costs calculations is to protect the consumer interest. I interpret the Eirgrid views on additional costs as a contribution to the consultation process.
The submissions received by my Department under the consultation process, including the submission received from Eirgrid, are currently being analysed with the technical assistance of Sustainable Energy Ireland. I have not subjected any of these to independent assessment and have no proposals to do so at this time.
235 Mr. Murphy asked the Minister for Communications, Marine and Natural Resources the reason the ESB did not co-operate with his renewal energy policy targets by not putting adequate grid resources in place. [15624/04]
View answerUpgrades to the electricity network generally are matters for the network operators in consultation with the Commission for Energy Regulation. Grid upgrade requirements for the connection of wind farms are specific to the location and capacity of the proposed wind farms and interaction with other proposed wind farms in close proximity. As a general rule to date, even where wind farms secure planning permission, they proceed to the construction phase only after the award of a power purchase agreement, primarily under my Department's alternative energy requirement programme.
Grid capacity demand cannot therefore be predicted even by reference to wind farm projects with planning permission. Furthermore capacity demand cannot be identified in advance of formal applications for connections by wind farm developers. In these circumstances, it would not be cost effective to require the network operator to make significant investment in grid upgrades, which might or might not subsequently be sought by wind farm developers.
