By Joe Downes

IRISH renewable energy companies have vowed to plough E4bn into offshore windpower after being promised a guaranteed price yesterday for the electricity they produce.

A price of E140 per megawatt hour was announced by Energy Minister Eamon Ryan, who said it was enough to allow companies to raise the money they needed for wind-farms.

The promise brought a pledge last night from a group representing the renewable energy sector that it will now provide 2,000 megawatts of offshore windpower within five years.

The minister said that Ireland offered the potential for the finest renewable energy resource in the world, and his scheme would encourage firms to invest in it.

He said his scheme delivered the requisite stability for project developers to secure financing, by providing a guaranteed price for electricity for 15 years.

Mr Ryan said the level of support being offered was in line with what other countries are offering.

A spokesman for the National Offshore Wind Energy Association (NOW) said last night that its pledge of 2,000 megawatts might be only the start of what it could offer.

Torben Andersen said the figure could be reached from sea areas already covered by existing licences. Once that figure was reached within the initial five-year period, further offshore deployment would be possible subject to the needs of the Irish and European energy markets. Within 15 years, we can build an infrastructure capable of generating at least one third of our electricity from renewable sources, Mr Andersen said.

He also challenged any suggestion that renewable deployment could substantially increase energy costs.
A guaranteed pricing system reduces considerably the peaks in price which can occur in an electricity market whose principal generation comes from fossil fuels like oil and gas, he said.

In the last year oil prices have risen by approximately 50pc and there is no indication that they will fall significantly.
At the same time, the price of renewable energy sources continue to fall.

He said windpower had the potential to reduce electricity prices in the long run for Irish consumers.
Minister Ryan said his department is also working on a proposal with Scotland, Northern Ireland and Wales on the feasibility of building new transmission links across the Irish Sea.

This could be part of a new extended European off-shore grid connecting wind farms from other jurisdictions so that electricity will be produced on a predictable basis, he said.

If we can connect wind farms from other jurisdictions, electricity will be produced wherever the wind is blowing.
NOWs Torben Andersen also said that the price guarantee may help Ireland meet the tough new carbon emission targets being imposed by the EU.

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Source: Daily Mail; London (UK)