Dáil Éireann Debate, Tuesday - 16 July 2013
728. Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the length of time for which the PSO levy to subsidise peat burning power stations will continue; his views on whether it is the most efficient use of public subsidies which could be allocated to renewable energy sources which would also contribute to reducing our carbon emissions; and if he will make a statement on the matter. [35392/13]
Amharc ar fhreagraThe Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for peat generation, for certain conventional generation constructed for security of supply purposes, and for the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers, including the three peat stations. Peat-fired electricity plants are supported as they contribute to security of supply through the use of indigenous fuels. The levy is paid by electricity customers on their bills. It acts as a price support to peat, renewable and security of supply electricity generation and is therefore not a subsidy paid from public funds.
The particular PSO scheme for peat generation was approved by the European Commission in 2001 and was designed to enable the accelerated closing down by ESB of the then existing six old peat fired plants and the building of two new more environmentally friendly and efficient plants with a 15-year operational lifetime. The PSO also applied to the peat fired plan in Edenderry, which is now owned by Bord na Móna. The PSO for Edenderry Power expires in 2015 and Bord na Móna is incrementally increasing the co-firing of biomass with peat. REFIT 3, which opened last year, aims to support co-firing of biomass at all three peat stations. The PSO for the two ESB peat stations expires in 2019.
The PSO levy also supports renewable energy technologies used to generate electricity under the Alternative Energy Requirement (AER) scheme, launched in 1995 and under the Renewable-Energy-Feed-in-Tariff (REFIT) scheme. The first phase of REFIT was launched in 2006 with subsequent schemes opening in 2012.
I have no plans to end the PSO for peat in advance of the dates for their expiry under the European Commission approvals.
