Electricity Generation

Dáil Éireann Debate, Tuesday - 12 February 2019

Tuesday, 12 February 2019

Questions (582)

Barry Cowen

Question:

582. Deputy Barry Cowen asked the Minister for Communications, Climate Action and Environment the breakdown of the allocation in 2019 for converting west Offaly and Lough Ree power plants to more sustainable low-carbon technologies; the date in 2019 the plants are expected to be converted; if this will be impacted by the cost overrun with the national children's hospital; if he has been consulted by the Department of Public Expenditure and Reform in this regard; and if he will make a statement on the matter. [6791/19]

Written answers

Minister for Communications, Climate Action and Environment

The cost of developing electricity generation plant is borne by project developers, within an open competitive market. There are no Exchequer funds allocated for this purpose. Both Lough Ree and West Offaly power plants, operated by the ESB, currently benefit from the support scheme for peat, which is funded by a Public Service Obligation levy. This levy is charged to all electricity customers by their electricity suppliers. The levy consists of the estimated eligible costs that generators are forecast to incur, less the level of market revenue which is forecast to be earned. This support scheme will expire at the end of 2019.

Both West Offaly and Lough Ree have been awarded support for biomass co-firing, up to 30% of their capacity, under the Renewal Energy Feed in Tariff Scheme (REFIT 3), provided the applications for planning permission for the two plants are successful. The support for biomass co-firing under this scheme is €99.57 per megawatt hour (MWh).