The primary support mechanisms for the domestic support of renewables are the Renewable Energy Feed-In-Tariff (REFIT) schemes. These schemes were introduced to incentivise the development of renewable electricity generation capacity necessary to allow Ireland to meet its target of 40% of electricity demand from renewable generation by 2020. REFIT operates by providing a guaranteed minimum price for electricity exported to the grid over a 15 year period, thus giving the certainty project developers need to be able to finance their projects. REFIT is funded from the Public Service Obligation levy. The REFIT 1 scheme is now closed for applications. The REFIT 2 scheme was opened in March 2012 and will close for applications at the end of 2015.It is important to note that any project of a significant scale and specifically for renewable energy export, will require the signing of an Inter-Governmental Agreement which would have to ensure no net cost or risk to the Irish State or consumer. A support scheme for export projects will not be developed by Ireland or supported by Irish consumers. Any support mechanism that is proposed for the export projects will be a matter for the UK authorities. It is also important to note that the amount of energy to be procured by the United Kingdom and the mechanisms for sharing the resultant economic benefits, including an appropriate return to the Exchequer, are matters to be addressed in any potential Inter-Governmental Agreement. In the process of formulation of Ireland’s renewable energy policy, my Department takes full account, as appropriate, of renewable energy policies in other member states.
