Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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38. To ask the Minister for Communications, Energy and Natural Resources if he will publish the cost benefit analysis that would underpin the selection of wind energy as the primary renewable to be integrated into power generation; and if he will make a statement on the matter. [10334/15]

Joe McHugh (Donegal North East, Fine Gael)
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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. The creation of the portfolios was informed by the resource available, the technological readiness of the various generation technologies and cost required per generated unit based on connection costs, construction costs and operating and maintenance costs. The mapping for the analysis also assessed the deployment potential based on where the resource was and an overview of environmentally designated areas.

It was following this study that it was decided to pursue 40% renewable electricity in Ireland by 2020. The study concluded that, based on assumptions set out in the Report, wind energy represented a cost effective source for electricity generation.

In Ireland, the abundant wind resource means that each unit of installed generation capacity generates more units of electricity and hence needs a lower rate per generated unit of electricity in order to recover the overall costs of the project.

Additionally, various reports and analyses have examined the effect of renewables on electricity prices. The ESRI, the Irish Wind Energy Association (IWEA), the SEAI and EirGrid have undertaken such studies. The ESRI and IWEA studies both looked at the 2020 position, while a joint SEAI and EirGrid study looked at the position in 2011. The SEAI and EirGrid study found that because wind reduces the cost of wholesale electricity when wind is available on the system, the effect of the PSO was cancelled out and the cost was effectively zero. While this is true for 2011, it is acknowledged that a significant amount of grid build and grid upgrading is required to achieve the 2020 target. The ESRI study found that wind is a hedge against high fossil fuel prices. In that regard wind also provides security of supply benefits along with climate and sustainability benefits.

An IWEA member survey in 2014 indicated that 3,400 people are employed in the sector in Ireland. A report published in 2014 by the ESRI and Trinity College Dublin, 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.

Renewable electricity generation in Ireland in 2012 is estimated by the SEAI to have saved 778 ktoe of fossil fuel, with an associated CO2 emissions reduction of 1.94 million tonnes. Of this, wind generation was the largest contributor, with savings estimated at 586 ktoe of fossil-fuel and a CO2 emissions reduction of 1.51 million tonnes. The value of the fossil fuels not consumed in Ireland in 2012 as a result of wind generation was estimated at €177 million, with the value of avoided CO2 emissions being a further €11 million.

Analysis undertaken by the Department, the Sustainable Energy Authority of Ireland (SEAI), EirGrid and the Commission for Energy Regulation (CER) assessed the costs and value of choosing the path towards 40% renewable electricity generation in 2020, compared to a scenario where renewable electricity remained at 2013 levels. This analysis highlighted the cost effectiveness of wind as a renewable energy source and informed a report which will be published shortly.