Vol. 566 No. 3
286 Mr. P. Breen asked the Minister for Communications, Marine and Natural Resources the steps he has taken in the recent AER VI competition to prevent big business interests from submitting unrealistically low bids, with no intention of building any of these wind farms in order to keep other smaller players out of the market; and if he will make a statement on the matter. [12924/03]
AER VI is operated in compliance with the open tender procedures under EU procurement rules addressed to the electricity market – Directive 93/38/EEC as amended. There are no procedures to exclude any applicant based on financial worth or market power.
AER VI is confined to projects with planning permission in the biomass, hydro and onshore wind categories. In the new categories of offshore wind a foreshore licence or a foreshore lease is a precondition and in the biomass anaerobic digestion and biomass CHP categories a prior planning application lodged with the appropriate planning authority is a prerequisite. It is my view that the cost of pursuing these consents is such as to ensure that only bidders with serious intent make bids.
As a further measure to discourage speculative bids in AER VI, applicants are required to apply for an electricity grid connection within 20 days of receipt of a formal offer from my Department or lose the offer. The associated payment to the network operators is a further disincentive to speculative bidders. In addition, within 90 days of receipt of an offer from my Department, applicants are required to submit a detailed time schedule for completion of the project and thereafter time is of the essence in meeting those deadlines or the offer can be withdrawn.
Even if it was desirable, I do not see any practical way of excluding applicants based on market power or financial presence. The procedures adopted do as much as is practicably possible to discourage unrealistic bids and to quickly identify and weed out any such proposals where they occur irrespective of the market power or financial worth of the applicant.
287 Mr. P. Breen asked the Minister for Communications, Marine and Natural Resources the number of megawatts in each category which have been tendered for in the recent AER VI competition; and if he will make a statement on the matter. [12925/03]
The sixth alternative energy requirement programme closed for receipt of applications on 24 April 2003. An initial count to develop a schedule of applicants and bid prices in accordance with Department of Finance guidelines records 167 applications in all categories for 1503 megawatts of renewable energy sourced electricity.
My Department with assistance from Sustainable Energy Ireland is now in the process of examining applications in detail. I am not in a position to provide any additional information until the examination now under way is completed and a report is made to me. An announcement will be made on those applicants successful in the competition when all the applications have been assessed and examined in full for compliance with the terms and conditions of the competition.
