The Irish Wind Energy Association has urged the Government not to set a "low" wholesale price for power in a new programme to support the industry.

The fifth Alternative Energy Requirement scheme is expected to be finalised within two months.

It will enable producers of wind-generated electricity to sell power to the ESB at a premium price for a fixed period.

Stating that the programme was critical to the development of wind energy, the association said only viable projects would satisfy funding criteria.

The association, made up of 21 commercial and elected members, criticised the removal in the Finance Bill of an incentive for investors in leasing partnerships. "Without fiscal incentives, it is unlikely that wind energy operators will be able to meet their targets."

On the programme, it said too low a price would force operators out of business. Companies would also become overly dependent on on a select group of private buyers offering low prices for short-term contracts.

This would risk the Republic failing to meet international obligations on carbon emissions and renewable energy.

Citing targets outlined in the Green Paper on Sustainable Energy, the association said a "properly priced" programme would be an important first step in increasing wind energy capacity to 500 megawatts by 2005, about four times present capacity.

Consultants appointed by the association, SW Corporate Services, recommended three price ranges based on windfarm size.

Based on cash-flows required for projects lasting 15 years, the consultants said 15 MW windfarms should be paid 4.19 pence per unit per kilowatt hour. They said six MW projects should be paid 4.88 pence per unit while 2.5 MW projects should be paid 5.25 pence per unit. Such prices should be index-linked to reward investors in real terms, they added.