Policy status:Superseded
Date Effective:2003
Policy Type:Economic Instruments>Fiscal/financial incentives
Agency:Department of Communications, Marine and Natural Resources
Renewable Energy Description:

Six Alternative Energy Requirement (AER) competitions were held between 1995 and 2003. Under the AER scheme, winning bidders are entitled to a 15-year power purchase agreement whereby the ESB buys the electricity output of the winning facility at the bid price. The additional cost of electricity procured under the AER schemes is spread across all electricity consumers. The prices paid by the ESB are increased annually in line with the Consumer Price Index. For each competition a quota is set for the amount of electricity to be sourced from each technology, e.g., wind, hydro, biomass/waste. In AER I, the unit price was fixed and applicants were entitled to bid for capital grants. In subsequent competitions, a price cap for each renewable technology was set instead of a fixed price. Winning bidders in AER III were also entitled to apply for a capital grant under the ERDF Economic Infrastructure Operational Programme 1994-1999. Under AER V, the securing of planning permission as a precondition for entering the competition was introduced. Under AER VI (2003-2005), front weighting of the bid price was provided for, allowing a price increase of 35% for the first 7.5 years of the contract followed by an associated decrease of 35% for the remaining 7.5 years. AER VI aims to ensure that the 500 MW target for renewables based electricity-generating capacity is reached by 2005. (

Climate Change Description:

In order to attain the 500MW target for renewables based electricity generating capacity the sixth competition in the Alternative Energy Requirement Programme, AER VI, was launched in February 2003. The closing date for receipt of applications was 24 April 2003. Through AER VI, and the previous competition, AER V, contracts for up to the target figure in large and small scale wind, biomass and small scale hydro have been offered to the market. Projects successful in the competitions must be installed and selling electricity by 31 December 2004.Prospective generators are invited to make a formal application to build, own and operate newly built plant and to supply electricity from these to the Electricity Supply Board (ESB) under a Power Purchase Agreement (PPA) of up to fifteen years duration.The technologies supported include wind energy, small-scale hydropower, combined heat and power (CHP) and biomass (landfill gas). AER VI offered support for the first time for offshore wind energy, biomass-combined heat and power and biomass-anaerobic digestion. The EU Commission issued state-aid clearance in September 2004.

This record is superseded by:Renewable Energy Feed-In Tariff (REFIT 1)
This record supersedes:Additional Renewables-Based Electricity Generating Capacity to be Installed - AER V

Last modified: Thu, 14 Mar 2013 12:08:54 CET