I am delighted to be here today to officially open Ireland’s first offshore wind power plant. The significance of this event is highlighted by the huge range of individuals, both from Ireland and abroad, who have travelled to be with us today. I thank you for your interest in this important project.
This project, about 10 kilometres offshore, is capable of meeting the electricity requirements of 16,000 homes annually. My congratulations go to GE on your technical competence and financing of this development.
GE was ably partnered in this project by Airtricity, an indigenous company, established to pioneer the development of both wind-powered stations and the establishment of a firm green electricity market in Ireland. GE was fortunate to identify a market leader such as Airtricity with complementary skills to bring this project to completion.
A further group of participants who have been essential to the early progress of this project are the local community. I am aware that Airtricity, in particular, invested heavily in consultations with local communities. I see that the benefits of that approach are even obvious today, with local people providing the entertainment for this event. I would like to commend you for your cooperation with this project.
The actions of GE, Airtricity, the local community and others in this project are in line with the Government’s commitment to the increased penetration of all renewable energy technologies in our energy mix. Primary concern is to ensure the administrative environment is conducive to such developments.
The Electricity Regulation Act of 1999, liberalised the entire green electricity market some five years ahead of full market liberalisation. This legislation allowed any green electricity supplier, time to develop niche electricity market sectors ahead of that liberalisation.
Airtricity has taken full advantage of this opportunity and is now developing as an international player in the wind-powered market. As an indigenous company established in 1997, it is already scaling up to take advantage of global opportunities. It is to be congratulated in those endeavours.
In addition to the early market liberalisation, which assisted Airtricity, the Government also adopted market friendly positive guidelines on the use of our offshore resources to develop wind farms. These guidelines delivered an acceptable balance between administrative rules and the demands of market operators, demonstrated by the completion of this project. Airtricity seized this market opportunity and secured the first offshore permissions for a wind farm.
GE has developed this project without recourse to State assistance, which is an exception to the global rule. If renewable energy technologies are to prosper, continuing support will be required.
A number of developers, including Airtricity, have stated that future development of the sector in Ireland demands a change away from competitive tendering for financial support. Responding to these concerns, my colleague Minister Noel Dempsey recently signalled to the market that future support will take the form of a fixed price support mechanism. This news has been received positively by project developers and reflects our commitment to further ambitious growth in the renewable energy sector.
Our minimum target is the obligation addressed to Ireland in the
“Renewables Directive” 2001. This Directive requires EU Member States to act positively to support an increase in green electricity production. The target in the Directive addressed to Ireland is to increase green electricity consumption to 13.2% of total electricity consumed by 2010. It is accepted by the Community Institutions, who participated in framing the Directive, that the target is challenging.
Our objective is to meet this target as a minimum, and preferably, to surpass it. The challenge is to put in place a regime, which will give fair and reasonable returns to developers and incentivise “bankable” projects, while also taking account of national competitiveness, environmental challenges and the interests of consumers.
The commitment of this Government to growth in the use of renewable energy technologies is assured. We have now a fully liberalised market and we must allow the market itself to determine who will prosper within it. The requirements on Government are to ensure that the administrative arrangements and fiscal incentive are sufficient to facilitate and adequately reward new project development.
Today however, is an opportunity to celebrate the recent achievements of GE and Airtricity. I congratulate you once again on your successful development of Ireland’s first offshore wind farm.
Thank you.
ENDS
26th May 2005