Dáil Éireann Debate, Thursday - 21 October 2004
51 Mr. Hayes asked the Minister for Communications, Marine and Natural Resources the extent to which alternative energy is available at a competitive price; and if he will make a statement on the matter. [25807/04]
Amharc ar fhreagra85 Mr. Kenny asked the Minister for Communications, Marine and Natural Resources his plans to encourage the provision of alternative energy sources at a competitive price; and if he will make a statement on the matter. [25815/04]
Amharc ar fhreagra128 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the progress to date in providing competitively priced alternative energy sources; his plans for the future in this regard; and if he will make a statement on the matter. [25940/04]
Amharc ar fhreagraI propose to take Questions Nos. 51, 85 and 128 together.
Large-scale hydro powered electricity generating stations can compete with conventional fossil and carbon technologies in an open competitive environment. In addition, some wind-powered electricity generating plant has been developed in Ireland as merchant plant — that is, without support — in recent years. However, these projects depend on a regulatory code that reassures consumers that the electricity they consume is associated with the generation of an equal amount of electricity from alternative energy sources within a 12-month cycle. They are also dependent on the accelerated liberalisation of the electricity market for renewable energy technologies which occurred in February 2000 ahead of full market liberalisation in 2005.
The conventional wisdom is that renewable energy technologies employed in the electricity market will continue to require special support into the medium term in order to compete in an open competitive electricity market. My Department's support mechanism, the alternative energy requirement, AER, programme, has operated to date to increase the contribution from renewable energy technologies in electricity production.
The underlying principle of the alternative energy requirement competitions, as operated to date, is that prospective generators are invited to make a formal application to build, own and operate newly installed renewable energy based electricity generating plants, and to supply electricity from these to the ESB under a power purchase agreement of up to 15 years.
In May of this year a renewable energy development group, chaired by my Department, was established. The group comprises relevant experts from the administrative and scientific sector which interacts appropriately with key market players. This group will advise on future options on policies, targets, programmes and support measures to develop the increased use of renewable energy to 2010 and beyond. This group's report which is due before the end of this year will form the basis of my future policy proposals to Government.
Biofuels are renewable fuels also, which have a significantly lower environmental impact than traditional mineral oils. They are available on the market as pure plant oil, which can only be used in vehicles with modified engines, bio-diesel, which is blended with diesel, and bio-ethanol which is blended with petrol for use in ordinary engines.
Earlier this year, my Department secured an amendment to the Finance Act 1999, which allows the Minister for Finance to apply a relief from mineral oil tax, for biofuels essential to a pilot project to produce biofuel or to research aspects of biofuel production and usage as a motor fuel. My Department is in discussions with the Department of Finance about the final design of a proposed scheme under the measure, and they expect to be in a position to announce details of a scheme, under the Finance Act provision, shortly.
