Electricity Generation.

Dáil Éireann Debate, Tuesday - 5 December 2006

Tuesday, 5 December 2006

Ceisteanna (323)

Joan Burton

Ceist:

351 Ms Burton asked the Minister for Communications, Marine and Natural Resources the estimated annual sum, in relation to the renewable energy feed in tariff programme, that will be paid to contracting suppliers from the PSO levy over the first year of the scheme; the percentage of their total costs this payment is estimated to represent on average; the estimated number of additional megawatt hours that will be provided under the programme over the first year; and if he will make a statement on the matter. [41244/06]

Freagraí scríofa

Minister for Communications, Marine and Natural Resources (Mr. N. Dempsey)

On 29th September I announced the first tranche of support under the Renewable Energy Feed In Tariff (REFIT) programme to over fifty new renewable powered electricity generating plants. The combined capacity of these projects is over 600 megawatts (MW), with wind-power accounting for most of the new support. The amount of megawatt hours that will be produced by these and other successful projects will depend on the build rate and, in the case of wind and hydro projects, weather conditions.

REFIT allows project developers to negotiate long term fixed price contracts in the wholesale electricity market. On the back of these contracts investors will release the necessary capital. Project costs vary on a case by case basis. Developers negotiate their financing and expenditure in the liberalised market. These are purely commercial matters for the developers involved.

The Public Service Obligation (PSO) is calculated annually by the Commission for Energy Regulation (CER). I have no function in relation to the Public Service Obligation.