Announces opening of new REFIT support programme encouraging investment in wind energy that will bring Ireland to its target of 40% by 2020
Addressing the spring conference of the Irish Wind Energy Association in Dublin this morning, Energy Minister, Pat Rabbitte, highlighted the increasing importance of wind power in Ireland’s energy future. In a wider European context Minister Rabbitte noted that the European Commission has publicly identified the pivotal role renewable energy will play in decarbonising the European economy. Its Energy 2050 Roadmap shows the importance of a fundamental shift away from fossil fuels; and Ireland, with its abundant onshore and offshore wind resources, is well placed to feature prominently in the Euro-wide renewable energy sector.
Ireland’s renewable energy evolution has seen the country move from 5% in 2005 to 18% renewable electricity today, but the Minister is seeking to accelerate this progress. Today he announced the opening of the new REFIT 2 support programme which will encourage investment in wind energy that will bring Ireland to its renewable electricity target of 40% by 2020.
In tandem with the development of new wind projects the Minister stressed the importance of a national electricity grid that will be able to carry the wind energy at least cost and maximum efficiency. "This requires the ongoing roll out of the Grid 25 programme together with delivery of the essential North South transmission reinforcements and the completion of the East West Interconnector".
"While maintaining a viable and effective market, we need to ensure that new projects can develop into the future. To do this we need to see critical infrastructure built out. The focus now must be firmly on delivery. In particular, the delivery of our vital energy infrastructure projects to underpin our collective security of supply. This is in the long term best interests of every citizen of this country",
Aside from the achievement of our domestic renewable energy target the Minister foresees significant export opportunity for both on and offshore projects of scale. "The Government, working together with the UK Government, acknowledges the scale of the renewable energy resources of these islands and through the British Irish Council and other fora, is actively working to develop cross border trade in renewable energy initially between Ireland and the UK but also, in time, to mainland Europe." He also detailed developments arising from wider European partnerships such as the North Seas Offshore Grid Initiative whose scope extends to the Irish Sea and the Atlantic.
He went on to highlight the particular opportunity presented by the Irish sea for offshore wind resources: "These are reasonably close to both coastlines and in relatively shallow waters, so they are suitable for development with existing technologies and are likely to have considerable cost advantages over projects in the North Sea area that are trying to develop further offshore and in significantly deeper waters."
The Minister considers that our overarching strategic objective is not just to make renewable energy an increasingly significant component of Ireland’s domestic energy supply by 2020 but also to make it a significant component of our export sector and help our balance of payments. "We have in Ireland a rich and abundant wind and ocean energy potential which I firmly believe can be harvested and exported as a real economic opportunity for this island."
To view Minister Rabbitte’s full speech please click here.
Ends
Notes to Editors
The Renewable Energy Feed-In-Tariff (‘REFIT’) operates by guaranteeing a minimum floor price for electricity exported to the grid by new renewable generating plants over a 15 year period. The scheme is open to new plants built and operational between 1/1/2010 and 31/12/15 that can fulfil the terms and conditions including planning permission and grid connection.
The minimum guaranteed price over 15 years provides sufficient certainty for developers to finance their projects. REFIT 2 will facilitate those developers in the grid connection process known as Gate 3 to progress their projects through the financial planning stages.
Ireland’s trajectory towards meeting our legally binding renewable energy target under Directive 2009/28/EC is set out in our National Renewable Energy Action Plan. By 2020, this will see us reach 40% renewable energy in the electricity sector, 10% in the transport sector and 12% in the heat sector, thereby reaching the required 16% overall. By supporting new renewable generating plants, REFIT will contribute towards the achievement of our target in the electricity sector. At the end of 2010, we had reached 14.8% renewable electricity, up from around 5% in 2003.
The announcement of the opening of the REFIT 2 scheme follows on from the opening of REFIT 3 for biomass technologies in February. REFIT 3 is designed to support anaerobic digestion, biomass combined heat and power (CHP) and biomass combustion and co-firing with peat. REFIT 3 will ensure an increase in both renewable electricity and renewable heat, while also stimulating the development of the biomass sector in Ireland.
The Terms & Conditions of REFIT 2 and REFIT 3 are available at:
http://www.dcenr.gov.ie/Energy/Sustainable+and+Renewable+Energy+Division/REFIT.htm
REFIT reference prices
Effective 1.1.10 and subject to the annual increase, if any, in the consumer price index.
REFIT 2
Large Wind - €66.353 MWh
Small wind - €68.681 MWh
Hydro - €83.814 MWh
Landfill Gas - €81.485 MWh
REFIT 3
AD CHP (units less than or equal to 500 kWe) 15c per kWh
AD CHP (units of greater than 500 kWe) 13c per kWh
AD (non CHP) (less than or equal to 500 kWe) 11c per kWh
AD (non CHP) (units of greater than 500 kWe) 10c per kWh
Biomass CHP (units less than or equal to 1500kWe) 14c per kWh
Biomass CHP (units of greater than 1500kWe) 12c per kWh
Biomass Combustion (non-CHP):
For using energy crops 9.5c/kWh
For all other biomass 8.5c/kWh
he observed.