I propose to take Questions Nos. 12 and 34 together.
In February last I announced a number of new categories for the Renewable Energy Feed In Tariff support programme to support renewable energy projects in the electricity market. These new categories include offshore wind developments.
The renewable energy feed-in tariff scheme or REFIT, has, to date, included biomass, landfill gas, hydropower and onshore wind-power. The REFIT scheme provides market incentives for individuals and businesses investing in or developing electricity from renewable energy. It does this by providing a guaranteed price for electricity produced for 15 years. Projects included in these existing categories will deliver the target to increase consumption of electricity from renewable energy sources to 15% by 2010.
The extension of the REFIT scheme to additional categories includes support for the development of offshore wind-power projects at a price of €140 per megawatt hour of power produced. The support price is in line with what other Governments are offering and will ensure international investor confidence in the sector.
By including offshore-wind in the feed in tariff scheme we are sending a strong market signal and creating the conditions for offshore wind to contribute to the target of 33% of electricity consumed from renewable energy sources by 2020. The announcement now of the proposed support for offshore wind was in part, a recognition of the long lead in times for such projects and is also to ensure that State-Aid clearance and other requirements are cleared well in advance of developments.
The current REFIT support programme was approved by the EU Commission under EU State Aid guidelines. In January 2008 the EU Commission adopted revised EU State Aid guidelines. These were formally published in April. My officials have been in regular contact with relevant officials of the EU Commission on the implementation and application of the revised guidelines.
In light of these discussions, my Department is now working with interested players in the domestic wind sector to quantify the various offshore capital costs elements and related requirements under the EU Commission's revised State-Aid guidelines.
The Offshore-wind category of REFIT may not legally be commenced until state aid clearance is secured. I am satisfied that clearance will be forthcoming in good time to ensure that offshore wind projects can be planned and developed. In that regard I welcome Commissioner Piebalgs assurance to the meeting of EU Energy Ministers last week that the Commission was working to assist all Member States in relation to State-Aid clearances in the renewable energy area.