Simon Harris (Wicklow, Fine Gael)
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Question 374: To ask the Minister for Communications, Energy and Natural Resources the current feed-in tariffs in connection with wind turbines here; and if he will make a statement on the matter. [15852/11]

Pat Rabbitte (Dublin South West, Labour)
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The Renewable Energy Feed-in-Tariff scheme known as REFIT was introduced in 2006 for certain categories of renewable energy, including onshore wind. Since then the tariffs have been increasing, where applicable, by the annual consumer price index. REFIT is based around 15 year Power Purchase Agreements between generators and suppliers which provide developers with the necessary certainty required to finance their projects. The scheme is funded through a Public Service Obligation (PSO) levy, which is paid for by all electricity consumers. Adjustments are by way of indexation annually, by the annual increase, if any, in the consumer price index in Ireland. The resulting reference prices for 2010 and 2011 per megawatt hour are provided, for information, in the following table.

Officials from my Department are currently in negotiation with the European Commission on State Aid clearance to continue to offer REFIT for the new renewable energy projects in Gate 3. The rates of tariff it is proposed to offer are the same as for the original scheme.

The sector shows strong interest from developers willing to invest in renewable electricity in Ireland and developers continue to participate in REFIT. I have no plans to increase the REFIT rates.

As regards the 15 year Power Purchase Agreements, the timeframe involved is a deliberate design feature, which was put in place so that developers could recoup their investment over 15 years. Given that the scheme is funded through the PSO, a shorter payback time would lead to increased upfront pressure on electricity consumers. I therefore have no plans to change this feature of the scheme.