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Alternative Energy Projects

Dáil Éireann Debate, Wednesday - 2 June 2010

Wednesday, 2 June 2010

Questions (155, 156, 157)

Simon Coveney

Question:

168 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the rational of paying energy suppliers a REFIT balancing payment for supplying electrifying source from renewable energy generation; and his approach to the REFIT balancing payment of future grid connections under gate 3. [23674/10]

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Written answers

Under the terms of the Renewable Energy Feed-in-Tariff scheme (REFIT), a new renewable generator accepted into REFIT must enter into a power purchase agreement (PPA) with a supply company. Under the terms of the PPA, the supply company agrees to purchase RES-E from the new generating station at a fixed price irrespective of the supply company's commercial concerns about the alternative open market price at any particular time. These fixed 15 year power purchase agreements are considered necessary to secure financing for new renewable generating projects.

The balancing payment was introduced as a compensation mechanism for supply companies participating in REFIT to defray the additional cost to suppliers of participation in the scheme. The Department is currently reviewing the REFIT scheme in the context of the State aid application for extension of the Scheme. As part of the review, the Department will be considering in consultation with the Commission for Energy Regulation, how the balancing payment to suppliers is to be treated going forward.

Bernard J. Durkan

Question:

169 Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the number and locations of wind farms proposed by public or private enterprise on a county basis; the potential generation capacity; if fully approved by way of planning permission and or access to the national grid; the timescale for conclusion; and if he will make a statement on the matter. [23793/10]

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There is currently 1379 MW of wind generation capacity connected to the grid. This includes over 100 wind farms. Information on the wind farms that are currently connected to the grid is available on the EirGrid website.

Information is provided on the number of wind farms awaiting approval for access to the grid and the breakdown by county on the EirGrid website.

In terms of progress in recent years, further information on those contracted to connect to the grid and their target connection date is available on the EirGrid website.

Supervision of the grid connection process and settlement of any disputes arising is vested in the Commission for Energy Regulation (CER). The CER has operated a group approach to connecting renewable projects to the national grid, which is designed to streamline the connection process in the interests of efficiency and cost effectiveness for developers. There is 3900MW of renewable generation included in the latest group processing approach, ‘Gate 3'. To date, the CER has not required evidence of planning permission to be provided prior to determining that a project will receive a grid connection offer.

Pat Breen

Question:

170 Deputy Pat Breen asked the Minister for Communications, Energy and Natural Resources further to his announcement of the REFIT price for co-firing of miscanthus and other biomass, when this REFIT price will be implemented; and if he will make a statement on the matter. [23824/10]

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The recently announced Renewable Energy Feed In Tariffs (REFIT) for biomass technologies will assist the development of a sustainable biomass supply sector in Ireland. They will ensure that there is a ready demand for biomass and will build on the measures already in place including the REHEAT programme and the Energy Crop grant schemes run by the Department of Agriculture, Fisheries and Food. The support tariffs will require State Aid clearance from the European Commission before they can be implemented. Their announcement sends a clear signal to the market at this point and my Department will progress the State Aid clearance over the coming months.

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