Finian McGrath
Ceist:317 Mr. F. McGrath asked the Minister for Communications, Marine and Natural Resources his plans for the future particularly in relation to issues (details supplied). [26246/03]
Written Answers. - Alternative Energy Projects.
The development of our renewable and alternative energy resources as a clean supply of electricity and as an efficient source of heating is an important part of the Government's overall energy policy. The aim of the policy is to create a positive and supportive framework within which renewables can prosper and become a real contributor to both our future energy needs and to our obligations under the Kyoto Protocol.
Government policy in this area is espoused in the Green Paper on sustainable energy and the national climate change strategy. In the Green Paper a target of an additional 500 MW of renewables based electricity generating capacity has been set as a key priority to 2005. The Green Paper also provided the impetus for the establishment of the then Irish Energy Centre as Ireland's national energy authority. Sustainable Energy Ireland, SEI, was established in April 2002 as a semi-State body. SEI promotes and assists environmentally and economically sustainable production, supply and use of energy, in support of Government policy, across all sectors of the economy. 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 RD&D.
The 500 MW target for renewables will be achieved in the main through projects successful under the alternative energy requirement, AER, programme and through direct sales to final customers under the liberalised electricity market. The programme is an open competitive process conducted in accordance with European Union procurement rules. As renewables energy sources cannot compete with conventional fossil fuel electricity generation, the additional cost incurred in the generation of electricity from these resources is passed on to the consumer as a public service obligation levy. Therefore the contracts offered under the AER programme are awarded to the lowest bids up to the available capacity on offer. By this route at the national level the levy charged to customers is minimised and at the EU level the state aid intensity is minimised which is consistent with general EU State aids rules.
As regards climate change, Ireland has committed to limiting the increase in greenhouse gas emissions to no more than 13% above 1990 levels by 2008-12. My colleague, the Minister for the Environment, Heritage and Local Government, Deputy Cullen, is taking the lead role in the climate change agenda and in this regard published the national climate change strategy in October 2000. This document provides a framework for the actions needed to ensure that Ireland meets its Kyoto target. The strategy is currently under review with updates expected on emission projections and measures needed.
As the energy sector is a significant source of emissions, it will have to play its part in helping Ireland meet its commitments. Adopting a least cost approach to the Kyoto agenda is essential to minimise the impact on the competitiveness of the Irish economy. The adoption of the Kyoto flexible mechanisms such as emissions trading, joint implementation and the clean development mechanism will be an essential element of the energy sectors response to the need to limit emissions.
I have already announced that my Department in conjunction with Sustainable Energy Ireland will conduct a fundamental review of the renewable energy sector. The review will focus on the key issues which I believe we now need to address particularly in the context of the EC directive on the promotion of electricity produced from renewable energy sources in the internal electricity market. The obligation addressed to Ireland in the directive is to increase the consumption of electricity from renewable energy sources to 13.2% of total electricity consumed nationally by 2010. I have already stated that this a minimum target which must be achieved.
A consultation document to kick-start the review process will be published by me shortly. The consultation will provide an opportunity for the general public and those interested in the sector to promote regional and/or rural sustainability as a priority of the new programme.