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Alternative Energy Projects.

Dáil Éireann Debate, Thursday - 21 October 2004

Thursday, 21 October 2004

Ceisteanna (40)

Eamon Ryan

Ceist:

23 Mr. Eamon Ryan asked the Minister for Communications, Marine and Natural Resources when he will issue the contracts for the additional 140 MW of onshore wind power, 50 MW of offshore wind power and 28 MW of biomass combined CHP; and if special conditions will apply to such contracts. [25753/04]

Amharc ar fhreagra

Freagraí scríofa

The Green Paper on Sustainable Energy 1999 established a target to add 500 MW of new renewable energy based electricity generating plant to the electricity network by 2005. The initial implementation programme planned to support this target by allocating support contracts under AER V and VI of the alternative energy requirement, AER, support programme. The 500 MW had EU state aids clearance prior to the commencement of AER VI.

At the launch of AER VI additional support was proposed for the construction of two offshore wind energy projects not exceeding 25 MW each and up to 28 MW of biomass powered combined heat and power, CHP, plant, subject to state aids clearance. Subsequently when the first round of offers under AER VI was announced, it was also indicated to the market that support would be offered for an additional 140 MW above the original 500 MW target subject to state aids approval.

This additional capacity was cleared by the EU Commission during August and notified to my Department in September. I will announce shortly the allocations, by category and by applicants, of all remaining unallocated AER VI support.

My Department's role in the AER support programme is to design and administer each AER round and to select the successful applicants. The associated formal contracts, in the form of power purchase agreements, PPAs, are issued by ESB customer service. However, ESB customer service will not be in a position to execute the PPAs until a related order under section 39 of the Electricity Regulation Act 1999 is published. It was not possible to progress a draft order to conclusion in advance of the Commission state aids decision and any special conditions which might arise. The draft order is now at an advanced stage of preparation but I am not in a position to give a publication date at present.

Each successful applicant in AER VI will, therefore, have ongoing obligations to my Department to comply with the published terms and conditions of AER VI and to ESB customer service to comply with the terms and conditions of the formal contracts.

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