Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 381: To ask the Minister for Communications, Energy and Natural Resources the position regarding feed-in tariffs in respect of turbine investment; his plans and developments on this topic (details supplied); and if he will make a statement on the matter. [15500/11]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The Renewable Energy Feed-in-Tariff scheme known as REFIT was introduced in 2006 for certain categories of renewable energy, including onshore wind. 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.

Officials from my Department are currently finalising negotiations with the European Commission in relation to State Aid clearance for continuation of the REFIT Scheme for the new renewable energy projects in Gate 3. The objective is to continue the REFIT Scheme on the same basis as the existing REFIT scheme. There are no plans to increase the rate of REFIT.

As regards the 15 year Power Purchase Agreements, the timeframe was established so that developers could have the certainty of recouping their investment over 15 years. Given that the scheme is funded through the PSO, any shorter payback time could lead to increased costs on electricity consumers and no change is proposed.