Dáil Éireann Debate, Tuesday - 30 November 2004
71 Mr. Hogan asked the Minister for Communications, Marine and Natural Resources the progress made by the renewable energy development group which is chaired by his Department; if he has received a report from the group; his intentions arising therefrom; and if he will make a statement on the matter. [31208/04]
View answer108 Mr. Boyle asked the Minister for Communications, Marine and Natural Resources when the renewable energy review group will present its report; and if it will made available to the Oireachtas Joint Committee on Communications, Marine and Natural Resources for discussion. [31236/04]
View answerI propose to take Questions Nos. 71 and 108 together.
The renewable energy development group was established on 6 May of this year. The group is chaired by my Department and comprises relevant experts from the administrative, industry and scientific sector including the Commission for Energy Regulation, CER, Sustainable Energy Ireland, SEI, ESB national grid and the Economic and Social Research Institute, ESRI, among others. The renewable energy industry is represented on the group through participation of members nominated by an industry sub-group.
The group has been focusing on a number of key issues, including the appropriate market mechanism for electricity generated from renewable sources; grid connections for wind energy projects; the renewables directive target, including the cost implications; the grid upgrade programme for renewables; net metering; the renewable energy consultation process; and research demonstration and development programmes for renewable energy technologies, including technologies other than wind.
The group 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 a comprehensive review of all pertinent issues is due shortly and will form the basis of my future policy decisions on the increased penetration of renewable energy technologies in the electricity market. I will make a copy of the group's report available to the Oireachtas Joint Committee on Communications, Marine and Natural Resources.
72 Mr. J. O’Keeffe asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the need to notify small-scale alternative energy producers now of the allocation to them out of the additional 140 megawatts in AER VI in view of the fact that the time limits arising for their raising finance under BES schemes in particular will expire in a matter of weeks. [31059/04]
View answer116 Mr. J. O’Keeffe asked the Minister for Communications, Marine and Natural Resources his views on whether it is time to bring the AER VI to a close in view of the fact that those interested in being allocated contracts for alternative energy supply have been waiting over 18 months for decisions on the additional 140 megawatts. [31058/04]
View answer138 Mr. Gormley asked the Minister for Communications, Marine and Natural Resources if he will offer additional offshore wind farm contracts as part of the allocation of additional contracts under the AER VI programme; and the factors, which preclude him providing such additional contracts. [31241/04]
View answerI propose to take Questions Nos. 72, 116, and 138 together.
The Green Paper on Sustainable Energy 1999 established a target to add 500 megawatts of new renewable energy based electricity generating plant to the electricity network by 2005. The initial implementation programme planned to support this target by allocating support contracts under AER V and VI of the alternative energy requirement, AER, support programme. The 500 MW had EU State aids clearance prior to the commencement of AER VI.
The AER VI competition included an offshore wind category for the first time. It was decided following a study conducted by Byrne O'Cleirigh on behalf of Sustainable Energy Ireland, SEI, that support would be offered for two 25 megawatt demonstration projects. The cost of electricity produced from offshore plants supported by AER VI will impose a higher charge per unit on consumers than the onshore equivalent. Support was also proposed for up to 28 megawatts of biomass powered combined heat and power, CHP, plant. Both the offshore wind and biomass CHP categories were subject to State aids clearance from the EU Commission. State aids clearance does not exist for any further capacity in these categories and, therefore, I will not be offering any additional offshore wind contracts.
When the results of AER VI were announced in July of 2003, it was also indicated to the market that support would be offered for an additional 140 megawatts above the original 500 megawatts target again subject to State aids approval. My Department applied to the European Commission for the necessary approval at that time. However despite ongoing correspondence with the Commission it was not until August of this year that the additional capacity was cleared and not until September that my Department was notified of this clearance.
My Department's role in the AER support programme is to design and administer each AER round and to select the successful applicants. The associated formal contracts, in the form of power purchase agreements or PPAs, are issued by ESB customer service. However, ESB customer service will not be in a position to execute the PPAs until a related order under section 39 of the Electricity Regulation Act 1999 is published.
It was not possible to progress a draft order to conclusion in advance of the Commission State aids decision and any special conditions which might arise. The draft order is now at an advanced stage of preparation and I will announce the allocations, by category and by applicants, of all remaining unallocated AER VI support very shortly.
Each successful applicant in AER VI will have ongoing obligations to my Department to comply with the published terms and conditions of AER VI and to ESB customer service to comply with the terms and conditions of the formal contracts.
