Written answers

Thursday, 17 July 2014

Department of Communications, Energy and Natural Resources

Wind Energy Generation

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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33. To ask the Minister for Communications, Energy and Natural Resources if there has been a thorough examination and analysis of the economic and employment benefits that might be derived from large-scale onshore and offshore wind farms; if he will publish the results of any such examinations and analyses; and if he will make a statement on the matter. [31648/14]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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Ireland's progress to date in transitioning to renewable energy was underlined by the SEAI (Sustainable Energy Authority of Ireland) in its publication, in February 2014, of "Renewable Energy in Ireland 2012". That publication noted that the contribution of renewable energy to meeting overall energy demand rose from 2.3% to 7.1% between 1990 and 2012, with renewable electricity contributing 4.1% to the overall energy demand in 2012. The publication is available on the SEAI website at .

Provisional figures for 2013 indicate that 16.4% of electricity demand was met by wind generation. At the end of 2013, the total amount of renewable generation connected to the grid was 2,300 MW. It has been estimated that between 3,000 and 4,000 megawatts of installed wind generation will be required to meet Ireland’s renewable targets, in addition to hydro generation, bio-energy, and renewable combined heat and power generators. Currently, over 3,000 MW of additional renewable generation has taken up connection offers under the Gate 3 grid connection programme.

There are a number of economic benefits that arise from onshore and offshore wind development, some of which are already being realised. The economic benefits include employment from the construction and maintenance of generation infrastructure as well as from component manufacturing. Analysis undertaken by the ESRI (Economic and Social Research Institute) and Trinity College Dublin (2013) estimated direct and indirect employment under various realistic scenarios. The report, which estimates multiple thousands of jobs depending on the scenario, is available on the ESRI's website at . Additional flows of income to local economies would arise from rates, rent to land owners and local community funds.

I should also highlight the additional benefits in terms of enhanced security and sustainability of energy provided by the increased use of indigenous renewable energy.

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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34. To ask the Minister for Communications, Energy and Natural Resources if he will provide details of the contribution by wind energy towards the overall energy and electricity bills for the country on an annual basis; and if he will make a statement on the matter. [31293/14]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable energy sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources. The primary support mechanisms for renewable electricity, including electricity generated from wind, are the Renewable Energy Feed-In-Tariff (REFIT) scheme and the Alternative Energy Requirement (AER) scheme, both of which are funded from the Public Service Obligation (PSO) levy.

The estimates for the cost of the PSO levy for each year since 2003 are published in the annual PSO decision by the Commission for Energy Regulation (CER). While the bulk of subsidies for renewable electricity generation paid under these schemes have been for wind, the CER has initiated a project to generate a report on the annual and cumulative costs to date in relation to AER and REFIT support schemes for each technology supported.

The CER determines the PSO levy which is a charge on all electricity customers without exception. The legal basis for the PSO levy and its method of calculation are set out in Regulations made under the Electricity Regulation Act, 1999 (S.I. No. 217 of 2002). The cost of the PSO varies from year to year depending on a number of factors including the wholesale market price of electricity.

The proposed PSO levy amount for the levy period 2014/2015 has been calculated by the CER to be €327,712,890 and the draft decision is on its website. In terms of the cost to the PSO of renewable energy, AER is expected to cost €2,269,000 and the cost of REFIT is estimated to be €84,346,555 which together would amount to an average charge of approximately €16.65 per domestic customer for the year. Although a breakdown of the PSO cost by technology is not available, wind makes up almost 95% of the renewable electricity supported in the two schemes.

A final decision on the PSO levy for the 2014/15 period will issue by 1 August 2014 and will be available on the CER website.

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