Government bid to salvage green energy plan ‘doomed to failure’

A GOVERNMENT energy strategy which has not generated any electricity two years after it was launched is doomed to failure, it was claimed yesterday.

The Alternative Energy Requirement (AER) scheme, which aims to provide energy through wind and wave power, has failed to deliver on a plan which would have given enough power to 220,000 homes.

AER schemes are vital if Ireland is to increase its share of green energy production and avoid €1 billion in EU fines over the next decade for failing to reduce atmospheric emissions.

However, largely due to restrictive price restraints placed on AER contracts by the Government, the schemes have failed to meet targets.

The most recent scheme (AER5), launched in 2001, awarded contracts for the production of 345MW of electricity enough to power 220,000 homes. However, no power has been produced because companies which won AER contracts were unable to make the scheme financially viable.

Despite the complete failure of AER5, the bidding process for an almost identical scheme, AER6, is due for completion this week. Opposition parties and many of those bidding for contracts under the new scheme predict another complete failure.

"I'm afraid to say that AER6 will be even worse than AER5 and likely result in no electricity again," said Dr Aidan Forde, director of wind energy company, Saorgas, which operates Ireland's largest wind farm at Tursillagh in Co Kerry.

"The department has performed incredibly badly over the years in creating the market conditions for wind energy in Ireland," he said.

Fine Gael environment spokesman Simon Coveney said the AER system was doomed to failure unless higher prices were offered for green energy contracts.

"Ireland offers the lowest prices in Europe for the production of renewable energy. We are actually getting worse despite the fact that we are nearing crunch time in relation to EU fines," Mr Coveney said.

A Department of Communications spokesman defended the system, saying he was confident AER6 would be successful since it offered higher prices for green energy produced.

"People who won contracts under AER5 will be given better terms under AER6. We expect to deliver, between now and 2005, almost 600MW of additional power from renewable energy or enough to power 500,000 homes," he said.