I propose to take Questions Nos. 68 and 84 together.
In May 2010, I announced a set of new Renewable Energy Feed In Tariffs (REFITs) for electricity generated from biomass, ranging from 8.5 cent per kilowatt hour to 15 cent per kilowatt hour depending on the technology deployed. These tariffs include support for electricity generated from biomass co fired with peat in the three peat fired power stations, along with supports for electricity produced from Anerobic Digestion units. Anaerobic Digestion offers opportunities for farmers to use animal wastes like pig slurry to generate electricity, while also reducing the environmental impact of that waste through alternative use.
In all cases, the REFIT tariff announced refers to the price to be paid for the electricity exported to the grid, rather than the price for inputs into that process. This is the way in which existing REFITS have operated since 2006, and the manner in which other similar schemes across the EU also operate. It will be for generators to manage their businesses so as to ensure that they source sufficient volumes from the market. However it should be noted that the two separate prices available for biomass material being combusted, 8.5c kw/h for general biomass and 9.5c kw/h for energy crops (including Miscanthus) reflects the higher costs associated with growing energy crops, and is also designed to incentivise the potential for Irish farmers to exploit the opportunity which energy crops represent.
State Aid Clearance from the European Commission is required before the new biomass tariffs can be implemented. My Department is currently finalising the State Aid submission with Sustainable Energy Authority of Ireland for transmission to the Commission this week.