Dáil Éireann Debate, Thursday - 17 October 2024
127. Deputy Carol Nolan asked the Minister for the Environment, Climate and Communications the total cost allocated by Government in subsidising wind energy each year from 2011 to date; and if he will make a statement on the matter. [42263/24]
Amharc ar fhreagraThe Public Service Obligation (PSO) levy supports the development of renewable electricity including wind, solar, and other renewable technology generation projects and is a key enabler to decarbonising our electricity system over the longer term in line with the Climate Action Plan and the Programme for Government. It is a vital policy support to enable Ireland reaching our national and EU renewable energy and climate targets.
The PSO levy is applied to all electricity customers and is collected through electricity suppliers as part of their bills. The money raised from the levy funds renewable electricity generators that qualify for support through various government schemes including the Renewable Electricity Support Scheme (RESS) and its predecessor Renewable Energy Feed in Tariff (REFIT) schemes.
The PSO has a small impact on electricity bills due to the stability of supply of renewable generation. This can be compared to the impact of, for example, huge jumps in the cost of international fossil fuels, as we saw in 2022 following the Russian invasion of Ukraine.
The current scheme, RESS, provides for consumer protection, whereby supported projects are required to pay back into the PSO when market prices exceed their RESS support price. This means that increases in the PSO are balanced by lower corresponding wholesale prices. CRU estimates the net monies due to be repaid to the PSO by suppliers under RESS in 2024/25 is €52.44 million.
Analysis by the ESRI suggests that early delivery of onshore renewable electricity generation this decade will drive down wholesale electricity prices by up to 10% - benefitting households and businesses.
The table below details the annual PSO levy for each year since 2010/11. Note, the negative figures are years in which the consumer received a net refund from the PSO, due to the RESS obligation detailed above.
|
Year |
€ Millions |
|
2011/12 |
92.12 |
|
2012/13 |
131.24 |
|
2013/14 |
210.89 |
|
2014/15 |
335.44 |
|
2015/16 |
325.25 |
|
2016/17 |
392.42 |
|
2017/18 |
471.90 |
|
2018/19 |
209.29 |
|
2019/20 |
176.46 |
|
2020/21 |
393.13 |
|
2021/22 |
263.70 |
|
2022/23 |
-491.25 |
|
2023/24 |
-67.47 |
|
2024/25 |
251.79 |
SEAI estimates that Ireland’s national energy-related emissions fell by 7.3% in 2023 and reached their lowest level in 30 years. Emissions from the electricity generation sector in Ireland were down by 20.9% in 2023, due to an increased use of electricity imported through international interconnectors and increased renewable generation in Ireland supported under PSO funded schemes such as the RESS.
The latest CRU Decision on the PSO Levy for the period October 2024 to September 2025 is available at: CRU.ie
