Michael Moynihan (Cork North West, Fianna Fail)
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38. To ask the Minister for Communications, Energy and Natural Resources the value for money of subsidies for wind energy on consumer energy bills, if these will be continued after 2017, the average amount they contribute to consumer electricity bills; and if he will make a statement on the matter. [44808/15]

Michael Moynihan (Cork North West, Fianna Fail)
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What is the value for money of subsidies for wind energy on consumer energy bills; if these will be continued after 2017; the average amount they contribute to the consumer’s electricity bill, and will the Minister make a statement on this matter?

Alex White (Dublin South, Labour)
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The renewable electricity feed-in tariff, REFIT, schemes are the principal means of supporting renewable electricity generators for energy exported to the grid. Based on power purchase agreements between generators and electricity suppliers, REFIT schemes assure a minimum price for each unit of electricity exported to the grid over a 15 year period. Projects seeking support under REFIT must apply to my Department by 4 p.m. on 31 December 2015.

REFIT forms a key part of the public service obligation, PSO. The PSO levy is charged to all electricity customers in Ireland to support national policy objectives related to renewable energy, indigenous fuels, peat, and security of energy supply. The PSO levy is determined each year by the Commission for Energy Regulation, CER.

Ireland’s REFIT schemes have proved effective in attracting investment into the renewable energy sector. In addition, the REFIT schemes have been found to be a very cost-effective tool to support renewables development, as indicated by a report published by the Council of European Energy Regulators earlier this year. Furthermore, renewable electricity generation in Ireland in 2014 is estimated by the Sustainable Energy Authority of Ireland, SEAI, to have avoided €250 million worth of fossil fuels imports.

My Department has been working with the SEAI, EirGrid and the CER to assess the costs and value of choosing the path towards 40% renewable electricity generation in 2020.

Additional information not given on the floor of the House.

Cost for overall renewable generation since 2010-11

Michael Moynihan (Cork North West, Fianna Fail)
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Close to €150 million will be spent on subsidising wind energy in 2015-16. Is this value for money? The National Competitiveness Council, NCC, states: "It is critically important for the effective functioning of the all island electricity market that renewable generation capacity is subject to market forces to the greatest extent possible. As a mature technology, price supports for new onshore wind projects should be discontinued when REFIT 2 ends in 2017". What is the Minister’s opinion of those statements? Does he believe we are over-reliant on wind energy to meet our commitments on carbon and so forth?

Alex White (Dublin South, Labour)
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The €156 million is the cost for overall renewable generation, not specifically wind. Of course it would be great if we could achieve our objectives without any State subsidy. It would be highly desirable not to have to subsidise the sector at all.

However, it has been demonstrated that to bring forward the new renewable technologies and investments, that subsidy is required. Other countries have discovered this also. I have had this debate before about solar energy with one of the Deputy's colleagues. Strategic decision-making is always necessary in terms of the extent to which, and when, new technologies should be subsidised. Perhaps if one held back from the subsidy, as other countries in Europe are discovering in the case of solar energy, it might have happened anyway without it because the market would have delivered all of these changes. That may well be so, but, ultimately, we will review the question of wind energy. I do not want the Deputy to imagine that I think our renewable energy portfolio should be confined to onshore wind generation; it definitely should not. It has proved to be successful, but it should not be confined to it.

Michael Moynihan (Cork North West, Fianna Fail)
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Many countries in mainland Europe have been pulling away from wind energy generation which they view with a jaundiced eye at this stage, although we seem to be embracing it from a policy viewpoint. There are a raft of issues involved, with communities up in arms over it. Planners are now saying houses should not be built alongside wind turbines because such turbines are noisy and grant planning permission elsewhere. All things being considered, has the Minister factored what is happening in mainland Europe into his policy statement, the White Paper on energy? Given that many other countries are moving away from wind energy generation, should we not be doing likewise and look at alternatives such as solar energy?

The Minister mentioned the regulator setting the PSO levy. Is he satisfied that the Commission for Energy Regulation has the correct legislative tools to carry out its job into the foreseeable future? The commission was founded ten years ago, but is it not time to re-examine the legislation governing it? It should have new powers, not alone to set prices but also to reduce them.

Alex White (Dublin South, Labour)
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There are periodic reviews of the regulators. If it is determined or believed at any stage that the legislative environment is not adequate, of course, the Government can review it. If the Deputy has a view of a particular aspect of the legislation that he thinks is deficient, I am keen to hear what it is in order that we can debate the issue. However, I have no reason to believe the legislative environment in which the regulator is operating is problematic.

I keep hearing people say countries all over Europe are pulling away from wind energy generation, but that is simply not true. There are some countries which believe, understandably, that they have reached a certain level in onshore wind generation as a percentage or proportion of their renewables portfolio and that they do not need to, or cannot, go any further. I know that decisions have been made in the United Kingdom recently, but it is simply not true to say there is a generalised abandonment of onshore wind generation. I support the Government's onshore wind energy policy, but I remind the Deputy that the policy was put in place by the previous Government. It showed great foresight and I think we are right to carry it on.