Dáil Éireann Debate, Thursday - 17 July 2014
34. Deputy Seamus Healy asked the Minister for Communications, Energy and Natural Resources if he will provide details of the contribution by wind energy towards the overall energy and electricity bills for the country on an annual basis; and if he will make a statement on the matter. [31293/14]
View answerThe 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable energy sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources. The primary support mechanisms for renewable electricity, including electricity generated from wind, are the Renewable Energy Feed-In-Tariff (REFIT) scheme and the Alternative Energy Requirement (AER) scheme, both of which are funded from the Public Service Obligation (PSO) levy.
The estimates for the cost of the PSO levy for each year since 2003 are published in the annual PSO decision by the Commission for Energy Regulation (CER). While the bulk of subsidies for renewable electricity generation paid under these schemes have been for wind, the CER has initiated a project to generate a report on the annual and cumulative costs to date in relation to AER and REFIT support schemes for each technology supported.
The CER determines the PSO levy which is a charge on all electricity customers without exception. The legal basis for the PSO levy and its method of calculation are set out in Regulations made under the Electricity Regulation Act, 1999 (S.I. No. 217 of 2002). The cost of the PSO varies from year to year depending on a number of factors including the wholesale market price of electricity.
The proposed PSO levy amount for the levy period 2014/2015 has been calculated by the CER to be €327,712,890 and the draft decision is on its website. In terms of the cost to the PSO of renewable energy, AER is expected to cost €2,269,000 and the cost of REFIT is estimated to be €84,346,555 which together would amount to an average charge of approximately €16.65 per domestic customer for the year. Although a breakdown of the PSO cost by technology is not available, wind makes up almost 95% of the renewable electricity supported in the two schemes.
A final decision on the PSO levy for the 2014/15 period will issue by 1 August 2014 and will be available on the CER website.
