Dáil Éireann Debate, Tuesday - 29 June 2004
15 Mr. Hogan asked the Minister for Communications, Marine and Natural Resources the number of wind energy sites that have received grant aid from his Department in the past year; and if he will make a statement on the matter. [19289/04]
View answerBuilding of renewable energy based electricity generating plants is supported by my Department under the alternative energy requirement programme, AER VI. According to the underlying principle of this competitive process, prospective generators are invited to make a formal application to build, own and operate newly installed renewable energy based electricity generating plant and to supply electricity to the ESB under a power purchase agreement of up to 15 years. Prospective generators who submit the lowest bids in each category are offered contracts up to the available capacity. Under the most recent competitions, AER V and AER VI, which were launched in 2001 and 2003 respectively, there was no grant-aid associated with the offers of contracts. Although my Department has not provided grant aid to any wind energy site in the past year, there may be project investors who continue to enjoy tax benefits under section 486B of the Finance Act 1997 as inserted in 1998.
Sustainable Energy Ireland administers a renewable energy research, development and demonstration programme which has an overall budget of €16.25 million to 2006. The programme is open to all renewable energy technologies and covers policy studies, field research, feasibility studies and technology research, development and demonstration proposals. The programme aims to stimulate deployment of renewable energy technologies close to market and address information and education needs to raise the awareness and willingness of all relevant players to actively engage in the market. The main focus of the programme is on stimulating increased application and deployment of renewable energy technologies. While Sustainable Energy Ireland has approved two wind energy projects for funding under the programme, neither has received any payment as state-aid clearance must first be obtained from the European Commission.
As a strong supporter of wind energy, I welcome the alternative energy programme. However, smaller operators which have received planning permission and funding are unable to obtain contracts under AER VI. The people who are trying to develop wind energy production must be looked after in some way.
I agree that a strong element of the Government's policy is to increase the number of renewable energy projects and the AER VI contract situation has brought forward a considerable number of those. Matters have slowed somewhat because of the moratorium, but that has been lifted. In conjunction with the various players involved, I recently set up a renewable energy forum, which is meeting as we speak, to bring forward an agreement between all the operators and interests on the way forward, especially in terms of the significant technical issues. I am glad to report that significant progress has been made by the group.
Does the Minister agree that, given the developments of the past year in wind turbine technology which allow turbines to ride through any fault in the grid system and to assist the grid operator in terms of voltage and frequency consistency, the stated level of wind generated electricity we could take, which was stated as 800 MW by the Minister in committee, now looks to be a cautious figure? Given the new technology breakthrough, we could now take 2,000 MW or 3,000 MW on to our system. Has the Minister or the Department taken an official position on that?
At the Select Committee on Communications, Marine and Natural Resources last week the ESB admitted that its innovative and welcome Kish bank development has severe difficulty in getting off the ground and looks like it will not be built within the timeframe specified under the terms of AER VI. If an operator who has been offered an AER VI contract is clearly unable to meet the deadlines, will the Department wait until the end of the timeframe it set out or, where it is clear a project is not being developed sufficiently quickly, will it intervene and reallocate the AER VI funding to a different operator?
We have brought forward a consultation process to decide where we move following the success of the AER VI programme. I would like to think we will move to a new system of awarding contracts or enticing new projects into the system.
I accept that, with new technology and better understanding of the complex technical issues, it is possible to put extra capacity on the grid. While my aspirations are one matter, we must be cautious to ensure that we do not cause blackouts because of the huge amount of wind energy being put on the system. That would cause difficulty in time of need.
I know six jobs will be created from what will possibly be the largest wind farm in the world, Bellacorick. However, given that 300 people will lose their jobs in the area and that three new peat burning plants will open in the midlands, what plans has the Minister for those 300 people in Mayo? An independent report is needed. The peat is available in Mayo, which could ensure Bellacorick would stay open or perhaps a new station could be provided like in the midlands where there are three new stations.
Will the Minister stop the destruction of acid drains to make way for a wind farm which will only employ six people while 300 people are made redundant? Will he allow an independent report to be carried out to prove Bellacorick peat plant could continue or that a new peat plant should be built for the west which is the most socio-economically deprived area in Ireland? Will he ensure the destruction of the drains is stopped so that whatever is in Bellacorick can be preserved to allow a new power station to be developed for the people of the west who need it more than those in the midlands?
Will the Minister indicate to the House when small operators can expect to receive the go-ahead for their wind farms? They have spent money and need to know when they can begin.
These are issues for the national grid, Eirgrid, and for the particular project people. The moratorium has been lifted and I would like to see some progress in the area.
With regard to the issues raised by Dr. Cowley, these are commercial decisions which are made by ESB and I have no involvement in that respect.
Written Answers follow Adjournment Debate.
