Michael Conaghan (Dublin South Central, Labour)
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To ask the Minister for Communications, Energy and Natural Resources if his Department has conducted a cost / benefit analysis in relation to wind energy, and in particular has any research been carried out into the economic benefits of wind energy to the local communities in which wind-farming takes place. [14437/13]

Pat Rabbitte (Dublin South West, Labour)
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Renewable electricity is supported through REFIT (Renewable Energy Feed-in-Tariff). Various renewable energy technologies are supported through REFIT, including onshore wind, hydro, landfill gas, biomass CHP, anaerobic digestion and biomass combustion and co-firing. The lowest REFIT reference rates are offered in respect of onshore wind.

The objective of the five part All-Island Grid Study, published in 2008, was to assess the technical feasibility and the relative costs and benefits associated with various scenarios for increased shares of electricity sourced from renewable energy in the all island power system. As part of this study, the incorporation of large amounts of wind energy onto the grid was analysed. It was following this study that it was decided to pursue 40% renewable electricity in Ireland by 2020. Electricity makes up just under one-third of all energy consumed in Ireland, the rest of energy being consumed in the heating and transport sectors. The study concluded that, based on assumptions set out in the Report, wind energy represented a cost effective source for electricity generation.

More generally, Ireland has been assigned a legally binding renewable energy target under Directive 2009/28/EC (the Renewable Energy Directive of 16% target to be achieved by 2020 across the transport, heating and electricity sectors. As already indicated 40% renewable generation of electricity is an important element of the overall 15% target. Articles 6-12 of the Renewable Energy Directive provide that where a Member State falls short of its target, it will have to purchase renewable energy credits (known as “statistical transfer”) from other Member States that have exceeded their target, at an as yet, unknown price. Accordingly, in this scenario, costs associated with renewable energy development will still be incurred, without the benefits of development.

In terms of the local communities in which wind-farming takes place, the economic benefits can potentially include construction, maintenance and component manufacturing employment. This latter opportunity has already been identified by the Industrial Development Authority of Ireland and Enterprise Ireland in their clean technology growth strategies. There is also a potential flow of income to local economies in terms of rates, rent to land owners and local community funds.