The offshore wind farm at Arklow Bank was commissioned in 2004. It pre-dated the introduction of the REFIT scheme and is part of an earlier scheme to support renewable generation namely AER or Alternative Energy Requirement. Under Orders brought in under the 1999 Electricity Regulation Act, the Commission for Energy Regulation (CER) is responsible for calculation and certification of the Public Service Obligation (PSO). The PSO year runs from 1 October each year until 30 September the following year.
By 1 August each year, the CER publishes a Decision Paper on the PSO for the upcoming year, which sets out the components of the PSO and the amount to be charged to electricity consumers in the upcoming period. The components are aggregated thus setting out the total costs associated with a given State Aid clearance decision. While the CER would calculate the aggregate sum from individual projects, it does not publish a list of the amounts of the PSO that relate to individual projects, as the data are commercially sensitive. In CER 11/130, the CER Decision on the 2011/2012 PSO year, the total cost of the AER scheme to the PSO is set out as €665,464. The Decision states that there is 322MW of AER generation capacity supported in this PSO decision. This would include the 25MW offshore windfarm referred to by the Deputy.
A study undertaken by the Sustainable Energy Authority of Ireland (SEAI) and EirGrid entitled ‘Impact of Wind on Wholesale Electricity Costs in 2011', concludes that the reduction in the wholesale market cost of electricity as a result of wind in the market place in 2011 is approximately equivalent to the sum of PSO costs i.e. that there is no net additional cost to electricity consumers. Benefits to Irish consumers from renewable energy include increased security of electricity supply, reduced reliance on high priced imported fossil fuels and reduced carbon emissions and economic activity and inward investment.
Directive 2009/28/EC also places a legally binding obligation on Ireland to achieve a set proportion of energy consumption from renewable sources by 2020. In the event Ireland does not meet the target, the Directive requires the purchase of renewable credits (at an as yet unknown price) from other countries that will have exceeded their target. By ensuring renewable energy development in line with the national target Ireland will avoid the risk of additional costs through having to purchase renewable credits, while enjoying the benefits in terms of reduced emissions, increased security of supply and increased economic activity.
