Seán Fleming (Laois-Offaly, Fianna Fail)
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397. To ask the Minister for Communications, Energy and Natural Resources when the European Commission approved the application by his Department in respect of the State aid application for the renewable energy support scheme known as the renewal energy feed in tariff; if the programme is based on a fixed feed in tariff mechanism rather than competitive tendering; the number of applications made under this scheme since that approval; the numbers that have been approved; and if he will make a statement on the matter. [22156/13]

Pat Rabbitte (Dublin South West, Labour)
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I understand that the Deputy’s question relates only to the REFIT 2 scheme. REFIT 2 follows on from REFIT 1. It is designed to accommodate new renewable generation built from the start of 2010 to the end of 2017 and its aim is to ensure sufficient new renewable electricity plant is built to make a significant contribution to our legally binding 2020 target under the Renewable Electricity Directive 2009/28/EC.

The European Commission approved the State Aid Application for the REFIT 2 renewable energy support scheme on 12th January 2012. The maximum capacity for which approval was obtained was 4000MW. The programme is based on a fixed feed in tariff mechanism and not competitive tendering.

The number of applications made to the REFIT 2 scheme since its approval by the European Commission is 45. The number of applications that have been approved by my Department is 43.

REFIT operates by providing certainty to project developers of a minimum price for electricity exported to the grid over a 15 year period. The initial capital outlay for new renewable projects is significant and the certainty provided by REFIT ensures developers can finance debt that is repayable over the period.