Dáil Éireann Debate, Wednesday - 18 September 2013
788. Deputy Andrew Doyle asked the Minister for Communications, Energy and Natural Resources the implications of the recent decision of the European Commission to approve an extension to the backstop date for the renewable energy feed-in tariff scheme 2006 for an additional two year period up to the end of 2027; and if he will make a statement on the matter. [37366/13]
View answerThe 2009 EU Renewable Energy Directive set Ireland a binding target of 16% of our total energy requirements to come from renewable sources by 2020. In order to achieve this overall target, Ireland is committed to meeting 40% of electricity demand from renewable generation by 2020. To date wind energy has been the largest driver of growth in renewable electricity, contributing most towards the achievement of the 2020 target. In 2012, 15.5% of Ireland’s electricity demand was met by wind generation. At the end of quarter one this year over 1,700 MW of wind generation capacity was connected to the grid. It is estimated that to deliver on our 40% target, a total of between 3,500 and 4,000 MW of renewable generation capacity will be required. It is anticipated that onshore wind will provide the bulk of this capacity.While good progress has been made towards achieving our 2020 renewable electricity target, maintaining the required rate of wind energy build is presenting a challenge. Analysis shows that the target will not be achieved without an increase in build from an historic average of 180 MW per year to at least 250 MW per year. Non-achievement of our 2020 target would result in compliance costs and emissions permit purchases. The Sustainable Energy Authority of Ireland has estimated that these could amount to between €100 million and €150 million per annum for each percentage shortfall in renewable energy and a further €250m in emissions permit purchases. In recognition of (i) the absolute need to meet our 2020 targets, (ii) the obstacles faced by developers in bringing projects to fruition and (iii) the need for policy certainty, earlier this year I took a number decisions to allow for greater flexibility of the Renewable Energy Feed in Tariff, or REFIT, support schemes. With regard to REFIT 1, approval to extend the backstop date to 2027 was received from the European Commission in early August and the scheme has now been amended accordingly. The extension of REFIT 1 to 2027 seeks to allow an adequate return on investment for developers whose investments facilitate Ireland in meeting the 2020 target. It also seeks to ensure the timely closing of this support scheme.
The extension of the REFIT 1 backstop date is part of a range of measures aimed at addressing the challenges of meeting our 2020 renewable electricity target. Acceptance of grid connection offers made by EirGrid under the Gate 3 process to developers of just under 4,000 MW of renewable generation is due to be completed in October. In light of the fact that a significant portion of Gate 3 projects is now likely to connect post 2015, I have also amended the terms and conditions of REFIT 2 to allow projects until 31 December 2017 to become operational. The progress of wind energy build will continue to be monitored closely by my Department and key State bodies.
