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Electricity Generation

Dáil Éireann Debate, Tuesday - 30 April 2013

Tuesday, 30 April 2013

Questions (108)

Micheál Martin

Question:

108. Deputy Micheál Martin asked the Minister for Communications, Energy and Natural Resources his response to the Forfás recommendation that subsidies for peat generated electricity should be discontinued; and if he will make a statement on the matter. [20225/13]

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Written answers

The Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for peat generation, for certain conventional generation constructed for security of supply purposes and for the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers, including the three peat stations. Peat-fired electricity plants are supported as they contribute to security of supply through the use of indigenous fuels.

The particular PSO scheme for peat generation was approved by the European Commission in 2001 and was designed to enable the accelerated closing down by ESB of the then existing six old peat fired plants and the building of two new more environmentally friendly and efficient plants with a 15-year operational lifetime. The PSO also applied to the peat fired plan in Edenderry which is now owned by Bord na Móna.

The peat PSO for Edenderry expires in 2015 and Bord na Móna is incrementally increasing the co-firing of biomass with peat. The PSO for the two ESB peat stations expires in 2019. REFIT 3, opened last year, aims to support co-firing of biomass at all three peat stations. I have no plans to end the PSO for peat in advance of the dates for their expiry under the European Commission approvals.

Question No. 109 answered with Question No. 95.
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