Thomas Pringle (Donegal South West, Independent)
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160. To ask the Minister for Communications, Energy and Natural Resources if he will provide details of the annual cost of REFIT in relation to wind energy; the projected cost in the next ten years; and if he will make a statement on the matter. [31801/14]

Alex White (Dublin South, Labour)
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The PSO levy is designed to support the national policy objectives of security of energy supply, including through the use of indigenous fuels (i.e. peat), and the use of renewable energy sources in electricity generation. The proceeds of the levy are used to recoup the additional costs incurred by suppliers in sourcing a proportion of their electricity supplies from such generators.

The Renewable Energy Feed-in Tariff, or REFIT, is the primary means through which electricity from renewable sources is supported in Ireland. The three REFIT schemes support electricity generated from a range of renewable sources to allow Ireland achieve its target of meeting 40% of electricity demand from renewable generation by 2020.

The cost of the PSO varies from year to year depending on a number of factors including the wholesale market price of electricity and the estimates for how much subsidy is funded by way of the PSO levy for each year are published in the annual PSO decision by the Commission for Energy Regulation (CER). The proposed PSO levy amount for the levy period from October 2014 to September 2015 has been calculated by the CER and a draft decision (CER/14/125) is on its website. The cost to the PSO of REFIT for the period is estimated to be €84,346,555. While the bulk of subsidies for renewable electricity generation paid under the REFIT schemes have been for wind, the CER has initiated a project to generate a report on the annual and cumulative costs to date for each technology supported. A final decision on the PSO levy for the 2014/15 period will issue by 1 August 2014 and will also be available on the CER website.

In analysing options for increased use of renewable energy as we approach 2020 and look to 2030 and beyond, we need to ensure our ambition is both sustainable, and economically and technically feasible. Analysis is being undertaken by my Department, the SEAI, EirGrid and the CER to further assess the costs and benefits associated with achieving 40% renewable electricity generation in 2020, compared to a scenario where renewable electricity remains at 2013 levels. This ongoing analysis will inform a report to be published shortly, and builds on existing work in this area. For example, the recently published SEAI report on Quantifying Ireland’s Fuel and CO2 Emissions Savings from Renewable Electricity in 2012 found that the value of the fossil fuels not consumed in the Republic of Ireland in 2012 as a result of renewable electricity generation is estimated at €245 million, with the value of avoided CO2 emissions being a further €15 million.