State in green energy deals

Thirty green energy companies are set to benefit from State electricity deals valued at a total of €40 million a year, under a Government programme announced yesterday.

The Minister for Communications, Marine and Natural Resources, Mr Dempsey, yesterday announced that the 30 operators, with a total capacity of to generate 238 megawatts (mw) of electricity, will get contracts to supply the ESB for 15 years.

More than 234 mw will come from onshore wind farms, while the remainder will be generated from landfill and other waste sources.

The value of the contracts will be capped at around 5.3 cents per kilowatt hour (kwh). A Department spokesman explained that as the plants are likely to generate between 35 and 40 per cent of their capacity, the total value of the deals will be between €30 million and €40 million a year.

The Department issued the contracts under its Alternative Energy Requirement (AER) programme. This aims to have 13.2 per cent of the Republic's electricity needs generated from green energy sources by 2010.

Currently, the State uses around 5,400 mw of electricity a year while the Government has granted support to green energy projects with a total capacity of 1,250 mw.

When these plants are up and running, the State will be able to generate 9 per cent of its electricity from green sources.

Mr Dempsey predicted yesterday that the contracts would create 140 new jobs and save €45 million a year by cutting annual demand for oil by more than 1.6 million barrels. He added that they would reduce greenhouse gas emissions by over 600,000 tonnes.

The biggest single beneficiary will be the Green Energy Co Ltd,which is based in north Cork. The Government has given it a contract for 47.5 mw, worth around €9 million a year. The other companies to win significant projects include Meentycat Ltd from Ballybofey in Co Donegal, with 22.5 mw, and Booltiagh Wind Ltd, from Connolly, Co Clare, with 19.5 mw. Their contracts are worth in the region of €3 million to €4 million a year.