John Gormley (Dublin South East, Green Party)
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Question 126: To ask the Minister for Communications, Marine and Natural Resources the reason he restricted the feed-in fixed price tariff support system to 400 MW of installed power; if he will extend such a support system to include offshore wind farms and the wide variety of new biomass technologies which could provide a consistent and secure source of energy supply; and the reason for the restrictions in the development of new renewable resources when the fixed prices are in many cases below the best new entrant price for a gas fired power station as estimated by the energy regulator. [27840/05]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 180: To ask the Minister for Communications, Marine and Natural Resources the steps he intends to take to increase the provision of renewable energy following the report from the Commission for Energy Regulation which estimates that the cost of electricity is set to rise significantly due to higher fuel costs and rising carbon emission costs; and if he will make a statement on the matter. [22233/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 126 and 180 together.

Ireland has a renewable electricity target of 13.2% of electricity consumption to be sourced from renewable technologies by 2010. To meet this target Ireland needs in the region of 1,450 MW of renewable capacity connected. Currently Ireland has 675 MW of renewable capacity connected with a further 175 MW under active construction. This consists of 400 MW of wind, 240 MW of hydro with the balance made up of different biomass technologies. Further development will also take place from the last two rounds of competitive tendering, the AER V and AER VI competitions.

To, at a minimum, achieve our target, 400 MW of new renewable capacity will be supported and this will be increased to accommodate any slippage rates from previous competitions.

Earlier this year I announced, in outline form, the next support programme to further increase the contribution to electricity production from renewable energy sources. This new programme will move away from the competitive tendering model to a fixed price scheme. This means that any applicant, whether an individual or company, may submit an application at a fixed price based on technology and, in the case of wind, the capacity of the project. There are ample proposed onshore projects available to deliver the capacity that can be connected without compromising the continuity of electricity supplies generally. However, the cost to consumers of supporting additional offshore projects is significantly higher than similar onshore projects. A total of 85 MWs is one conservative estimate of the short-term market interest in offshore projects. The net additional cost above the onshore costs of supporting 85 MW of offshore wind capacity is calculated at €139 million over the guaranteed 15 years, at June 2005 energy prices. This additional charge, plus VAT, would add directly to the cost of the public service obligation levy.

The detailed draft terms and conditions of the proposed feed-in support programme were posted on my Department's website, www.dcmnr.gov.ie, in draft form, on 29 September last and interested parties have until today to raise any queries or to furnish any observations on the proposals, as published. Following a consideration of any details raised the new programme, to be known as the renewable energy feed-in tariff, REFIT, will be put in place.