Patrick O'Donovan (Limerick, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources if Bord na Móna is eligible or entitled to claim a rebate in respect of losses incurred from the burning of biomass materials, specifically miscanthus, under existing Public Service Obligation arrangements that are in place for the burning of peat; if they are eligible for the rebate; the date from which they are in receipt of it; for how many tons was a rebate paid and the net amount paid in respect of miscanthus; and if he will make a statement on the matter. [48619/12]

Pat Rabbitte (Dublin South West, Labour)
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Section 39 of the Electricity Regulation Act 1999 (‘the Act’) sets out the legal basis for the Public Service Obligation (PSO) levy.

It is designed to support the use of indigenous fuels (i.e. peat) and the use of renewable energy sources in electricity generation with the proceeds of the levy used to defray, inter alia, the additional costs incurred by electricity suppliers in sourcing, and ESB Power Generation producing, a proportion of their electricity from such generators.

The Bord na Móna Edenderry electricity generation station is powered by a combination of peat and biomass co-firing. Up to earlier this year the Public Service Obligation (PSO) levy operated in respect of the peat component of power generation only. No PSO levy was payable in respect of the biomass element. The agreement between the ESB and Bord na Móna provides for a separate flat rate payment for biomass irrespective of the biomass used and the price paid for that biomass.

Earlier this year I opened REFIT 3 to support electricity generation from biomass. This will be funded under the PSO. One of the technology categories supported is co-firing of biomass, including energy crops such as miscanthus, with peat in existing peat powered plants including the Bord na Móna plant. It is anticipated that Bord na Móna will apply to participate in REFIT 3.