Dáil Éireann Debate, Thursday - 16 December 2004
114 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which he has examined the issue of state aid in respect of the need to encourage alternative energy; his views on the need to encourage renewable sources; and if he will make a statement on the matter. [34063/04]
View answerThe 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. In addition, at the launch of AER VI, my predecessor announced support for an additional 50 MW of new generating capacity in an offshore wind category and an additional 28 MW specific to biomass powered CHP plants. Subsequently at the announcement of the initial round of offers in AER VI it was proposed to add a further 140 MW to the original 500 MW target subject to State aids clearance.
The necessary State aids clearance was received recently and I announced the allocations, by category and by applicants, of the remaining unallocated AER VI support last Monday, 13 December. Full details of the successful applicants and the allocations are available on my Department's website at www.dcmnr.ie.
AER VI brings to a close an initial programme to add renewable energy technologies to the network at a level which does not raise serious technical issues. However, planning for future programmes at increased penetration levels does cause 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 was published entitled, Options for Future Renewable Energy Policy, Targets and Programmes. The consultation document and supporting annexes, which examine in detail support mechanisms and renewable energy policies in Ireland and in other European countries, were published on my Department's website. They examined key future challenges, 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 this year a renewable energy development group was established chaired by my Department. The group comprises relevant experts from the administrative and scientific sectors which interact appropriately with key market players. This group will advise on future options on policies, targets, programmes and support measures to develop the increased use of renewable energy to 2010 and beyond. The group is aware that the European Commission determined that the AER programme involved the payment of State aid to the generators supported by the programmes. It will take the issue into account in any recommendations it may make in its report. This report, which is due shortly, will form the basis of my future policy decisions.
In tandem with this work programme administered by my Department, Sustainable Energy Ireland, SEI, 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 promote renewable energy technologies. In the renewable energy field specifically SEI has opened a research, development and demonstration programme for renewable energy technologies. The programme is open to a wide range of proposals including policy studies, field research, feasibility studies and technology research and development.
