I regard combined heat and power, CHP, as having an important contribution to make to reducing both energy costs and CO2 emissions.
CHP was included as a technology in the AER Programme which is aimed at increasing the use of more efficient means of generating electricity. Offers were made to successful applicants to conclude contracts with the ESB to generate electricity from 29 MW of CHP capacity in AER I, of which 18 MW has been delivered. The AER IV competition, the results of which were announced in August 1998, produced offers of up to 50 MW. These latter projects must be operational by the end of this year.
In addition, the Irish Energy Centre is currently providing support for an additional 22 MW of CHP capacity which will also be operational by the end of this year. The centre continues to promote CHP because it is a proven and reliable technology which reduces energy costs. Accordingly, by the end of 1999, up to 90MW of additional CHP capacity will have been installed.
As to district heating, this has been most successful in regions which have colder climates and higher population densities than Ireland. Further consideration will be given to CHP and district heating in the Green Paper on sustainable energy which I hope to publish in the near future.