Dáil Éireann Debate, Tuesday - 22 June 2004
172 Mr. P. Breen asked the Minister for Communications, Marine and Natural Resources the action he proposes to take to kick start the wind energy industry here in view of substantially increased fossil fuel costs; and if he will make a statement on the matter. [18301/04]
Amharc ar fhreagraRecently, I announced the establishment of a renewable energy development group to be chaired by my Department. The group comprises relevant experts from across the sector and will advise on future policies, targets, programmes and support measures taking into account the associated economic, social and environmental impacts of the development and deployment of renewable energy. The promotion of renewable energy technologies, of which wind energy is the dominant form at this time, is a priority of this Government. As Minister with responsibility for energy policy, my immediate goal is to add an additional 500 MW of renewables based electricity generating capacity to the electricity network by 2005 to deliver the target published in the Green Paper on Sustainable Energy. In addition, I have announced that subject to EU state aids clearance I will support the building of an additional 218 MW of new renewable energy projects.
The 500 MW target is currently being implemented and will be achieved in the main under contracts offered by me under the fifth and sixth alternative energy requirement competitions. While I am confident of securing state aids clearance for the additional 218 MW which will be allocated to AER VI projects, I cannot commit to individual projects until the European Commission has finalised its position on the state aids notification. The AER VI competition was based on lowest bid price and only the lowest compliant tenders were offered contracts up to the capacity threshold defined for each technology class. This process ensures that the general customer incurs the smallest price increase on their electricity bills through the operation of the public service obligation levy. The process was oversubscribed and as with any competition not everyone who takes part can be successful. While some of the unsuccessful competitors may be disappointed with the fact that they were not selected on this occasion, the terms and conditions of the competition were clearly stated and all of the competitors acknowledged receipt of and accepted these terms and conditions when they entered the competition.
I am confident that those projects which were successful in the competition will proceed to completion. In the event that any project does not, a reserve list is in place to take up any capacity that is surrendered. The completion of AER VI will close the current chapter of support for renewable energy technologies. However, at the end of last year I published a consultation document, 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 as well as in other European countries were published on my Department's website. The document, which will be used to map out a future strategy for green energy in the coming years, follows a commitment I gave after the conclusion of the AER VI competition.
The consultation document considered key areas in the future including future renewables policy, future green energy contribution to Ireland's electricity markets, how to overcome barriers to the deployment of renewable energy and future options for market support mechanisms. Respondents were asked to outline their proposals in detail and to estimate the cost of any support measures they proposed. Over 40 responses were received and are currently being analysed with the technical assistance of Sustainable Energy Ireland. The analyses of the consultation document submissions will feed into the work of the renewable energy development group. It is intended that a new policy for developing the renewable energy sector will be submitted to Government for approval later this year.
In relation to generating capacity, the Commission for Energy Regulation continues to monitor the security of supply situation. The commission has initiated a number of positive actions to redress postulated generation capacity shortfalls in the short, medium and longer term as forecast by the ESB National Grid in its generation adequacy report which was published on 27 November 2003. In addition, the ESB is currently undertaking a significant networks investment programme of some €4 billion up to 2007 to bring the transmission and distribution systems up to required international standards and to meet projected capacity demand requirements. Furthermore, the Government has given its approval to proceed with the development of two 500 MW interconnectors between Ireland and Great Britain, while the desirability and feasibility of further interconnection North and South is being investigated.
Sustainable Energy Ireland, 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 to promote renewable energy technologies. In the renewable energy field specifically, Sustainable Energy Ireland 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 development and demonstration.
