I propose to take Questions Nos. 12, 16, 66, 100, 171, 174, 199, 212, 222, 223 and 240 together.
The 13.2% target relates to all renewable energy and is not based on wind energy alone. Taking account of the mix of technologies, this would require about 1,400 MW connected. Statistics for 2003, the most recently available at this time, quantify the outputs by renewable energy technologies in the electricity market as 4.4% of total electricity generated. By technology it was approximately 2.5% from hydro facilities, 1.7% from wind powered plants and the remainder from biomass powered plants.
The output from wind powered plants as measured in these statistics was based on 189 MW of wind powered plant connected. However, that figure has since increased to just over 400 MW completed with a further 175 MW under construction. I am satisfied, therefore, that there will be a significant year on year increase in these statistics.
In the course of the work of the renewable energy development group a wide spectrum of views and opinions were expressed by various parties including the Commission for Energy Regulation, CER. The CER wrote to me and expressed the view that additional wind energy projects can be developed without special support. It did not suggest that there is no need to develop the wind energy sector at this time. In the interests of clarity and transparency, I put that letter out for consultation and several replies were received. There was no support for the CER view and I am proceeding with a new support mechanism.
On 7 April last I announced, in outline form, the next support programme to further increase the contribution to electricity production from renewable energy. This new programme will move away from the competitive tendering model to a fixed price scheme. Given that we are moving to this new scheme I have no proposals to offer any additional or alternative support models as part of this specific support programme.
The target of 1,400 MWs includes large-scale hydro projects constructed by the ESB, other renewable energy plants already built or under construction, new projects which will build under the AER 5 and 6 support programmes and the additional capacity which will be supported under the new support mechanism.
The 1,400 MW target will therefore be delivered by a combination of biomass, hydro and wind powered technologies. Historically, the biomass category, as defined in the AER programme, could accept biofuel proposals. However, in the short term at least, biofuel proposals are more likely to be developed within the support measure I have launched for use in transport which is addressed in my reply to another question today. Wave energy is less developed as a technology and qualifies for support under the R&D programme operated by Sustainable Energy Ireland.
Although the competitive tendering element has been removed for the new support mechanism, a quantitative limit will continue to apply and a competitive element remains as required under section 39 of the Electricity Regulation Act 1999. It is necessary therefore that the detailed terms and conditions of the new support mechanism are published and accessible to all potential applicants on an equal basis. I am not in a position therefore to give any specific commitment regarding capacity allocations to any particular technology or category of technology.
My officials have had discussions on general points with representatives of project developers, some suppliers and financial advisers and with CER. Again, it was not possible to give any formal commitments on any detailed points to any of these parties in advance of publication of the terms and conditions. However, where it is practicable to accommodate the views of the various interests this will be done.
The published prices in the new support mechanism are the other item of intense interest. The prices must strike a balance between the interests of both developers and consumers. Project developers, in discussions with my Department, have accepted that the CER decision on revised connection charges will have a significant impact on the cost base of new projects. I intend to finalise proposals for consideration by Government this week.