Dáil Éireann Debate, Tuesday - 16 January 2018
1257. Deputy Róisín Shortall asked the Minister for Communications, Climate Action and Environment the value for money reports that exist for the return from investment in energy projects supported by the public service obligation levy. [1555/18]
View answerThe increased use of renewable energy is necessary to reduce greenhouse gas emissions. In Ireland, renewable energy projects are supported under the Public Service Obligation (PSO) Levy through a charge on all electricity customers as determined by the Commission for Regulation of Utilities (CRU). The legal basis for the PSO and its method of calculation by the CRU are set out in Regulations made under the Electricity Regulation Act 1999 (S.I. 217 of 2002). Typically the CRU publishes, for consultation, a draft of its proposed calculation of the Levy for the subsequent year in early summer with a view to finalisation before the Autumn.
The levy has been in place since 2001, and consists of a set of support schemes designed to facilitate national electricity policy objectives for renewables, indigenous fuels and security of supply. Ireland has a target of increasing renewable electricity penetration to 40% by 2020 and to date the PSO has supported the connection of over 3,000 MW of renewable energy to the electricity grid and will continue to support the development of renewable energy so that we can meet our target.
In terms of the value for money achieved, international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union. The PSO currently represents around 10% of the average household final electricity bill, or approximately €7.69 on a monthly basis for domestic customers from October 2017.
All schemes funded through the PSO were notified to the European Commission for state aid approval supported by economic assessment of the amount of aid required.
