Written answers

Tuesday, 17 December 2013

Department of Communications, Energy and Natural Resources

Electricity Grid Connection Fees

Photo of Jack WallJack Wall (Kildare South, Labour)
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369. To ask the Minister for Communications, Energy and Natural Resources the percentage of financial contribution the wind energy sector is contributing to Grid25 or any other grid development or expansion. [54315/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The transmission grid provides a vital link between all generators and the users of electricity. It provides physical access for all generators to a central market and it enables all users to avail of electricity from the central market at the most economic rates. EirGrid's Grid 25 Programme is a Government endorsed strategy to develop the transmission network to ensure nationwide safe, secure and affordable electricity supply supporting economic growth, and renewable and sustainable energy.

Annually, EirGrid as Transmission System Operator and the Commission for Energy Regulation, estimate the total revenue requirement in order to ensure recovery of all costs associated with the operation, development and planning of the transmission network in a particular tariff year, of which Grid 25 costs are one component. This revenue is recovered through Transmission Use of System (TUoS) tariffs from all users of the system, including generators and demand customers. There are rules outlining cost sharing of network technical adaptations and these are published by EirGrid and approved by the Commission for Energy Regulation (CER). In general, approximately 25% of network costs are recovered from all generators, including wind farms, with the remainder of the costs being recovered from suppliers and users. Charges to specific generators connected to the system are based on the generator's capacity and are site specific, differing according to the location of the generator. However, where assets are being specifically constructed for the purposes of the direct connection of a party (such as a wind farm) to the transmission network, typically termed its "shallow connection", the generator will contribute 100% of the capital costs for the connection.

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