I propose to take Questions Nos. 6 and 13 together.
The promotion of renewable energy technologies is a key priority of this Government. The Green Paper on Sustainable Energy, published in 1999, established a target to add 500 MW of new renewable energy based electricity generating plant to the electricity network by 2005. Further proposals in the course of the most recent support programme, AER VI, are being implemented to support the construction of a further 140 MW generally, an additional 50 MW in an offshore wind category and an additional 28 MW specific to biomass powered combined heat and power, CHP, plants. This represents an increase of more than 40% on the original target and is evidence of the growing importance the Government places on renewable energy technologies.
AER VI brings to a close an initial programme to add renewable energy technologies to the electricity network at a level which does not raise serious technical issues. However, planning for future programmes at increased penetration levels raises significant technical issues which must be addressed to maintain system security for electricity customers. This plan may in turn require a revision of the current support programme to embrace changes required to allow higher levels of wind energy penetration in particular.
At the end of last year a consultation document, Options for Future Renewable Energy Policy, Targets and Programmes, was published. The document and its supporting annexes, which examine in detail support mechanisms and renewable energy policies in Ireland as well as in other European countries, were published on my Department's website and examined key challenges in the future, including policy, future green energy markets, how to overcome barriers to the deployment of renewable energy, and future options for market support mechanisms.
In May of this year, a renewable energy development group, chaired by my Department, was established. The group comprises relevant experts from the administrative and scientific sector and it will advise on future options on policies, targets, programmes and support measures to develop the increased use of renewable energy in the electricity market to 2010 and beyond. The group's report, which is due before the end of this year, will form the basis of my future policy proposals to Government.
The AER VI programme is primarily about supporting renewable energy in the electricity market. Biofuels are also renewable fuels which can be used as alternatives for fossil fuels in vehicles. Earlier this year, my Department secured an amendment to the Finance Act 1999 which allows the Minister for Finance to apply a relief from mineral oil tax for biofuels essential to a pilot project to produce biofuel or to research aspects of biofuel production and usage as a motor fuel. My Department is in discussions with the Department of Finance about the final design of a proposed scheme under the measure and expects to be in a position to announce details of a scheme under the Finance Act provision shortly.
In tandem with these programmes, Sustainable Energy Ireland, the independent non-commercial State body focused exclusively on sustainable use of energy, including deployment of renewable energy sources, has commenced a challenging work programme to increase energy efficiency and to promote renewable energy technologies. In the renewable energy field specifically, SEI has opened a research, development and demonstration programme for renewable energy technologies. This programme is open to a wide range of proposals, including policy studies, field research, feasibility studies and technology research and development.