Pat Rabbitte (Dublin South West, Labour)

REFIT 2, the next phase of the renewable energy feed-in-tariff, REFIT, scheme, is designed to support up to 4000 MW of onshore wind, landfill gas and hydro technologies. There is also a new REFIT scheme for biomass technologies, known as REFIT 3, which will support a range of technologies, including combined heat and power, CHP, and anaerobic digestion as well as for co-firing of biomass in the peat power plants.

Separate state aid applications were submitted to the European Commission in relation to these two new schemes. I am pleased to inform the Deputy that earlier this month my Department received the state aid clearance decision from DG Competition for the REFIT 3 biomass technologies application. Government approval is currently being sought to open the scheme and once this has been obtained, the scheme will be formally launched and open for applications. I am advised that the second state aid decision from the European Commission on REFIT 2 for onshore wind, hydro and landfill gas should be forthcoming shortly and, once obtained, I will immediately seek Government approval to proceed to open the scheme.

New renewable electricity generation is supported in every member state and is necessary to underpin delivery of the European Union's ambitious 2020 renewable energy and climate change targets. It also displaces imported fossil fuels in our electricity generation and improves our overall security of supply. The REFIT scheme was announced in 2006 for certain categories of renewable energy, including wind and hydro power. It received state aid clearance in 2007 and projects under the original scheme continue to build out. There is just over 1200 MW of REFIT supported generation included in the 2011/12 PSO decision.

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The REFIT scheme was successful with Ireland achieving and marginally surpassing its 2010 renewable electricity target. Under the new renewable energy directive, 2009/28/EC, Ireland has been set a new legally binding target of 16% of all energy consumed in the country to be from renewable sources by 2020 across the transport, heating and electricity sectors. This is a more than a threefold increase on where we are today and will be challenging to deliver. As set out in our national renewable energy action plan, a large proportion of the mandatory target will be delivered through the electricity sector, and REFIT will play a key role in ensuring sufficient new renewable generation is built out.

The real challenge is to ensure that we are able to build out the necessary supporting grid infrastructure to enable the Gate 3 projects to develop. Grid reinforcement plays a key role in ensuring regions have a secure and reliable electricity supply. It is also necessary to strengthen the grid to be able to accept new renewable generation which is typically located in more remote areas that have weak grid systems. Our ability to get this infrastructure built is critical to achieving our renewable energy ambitions.

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