€51m subsidies for renewable energy sector

Wind and renewable energies make up just 10% of the approximate €210m in subsidies that domestic and commercial electricity customers are forced to pay in their electricity bills to support power plants in this country.

Anti-wind campaigners repeatedly complained that the sector is too heavily subsidised and that the drive towards wind energy should stop, as it pushes up the price of electricity.

Plants using fossil fuels such as peat and gas receive the lion’s share of the subsidy, according to Commission for Energy Regulation. The Tynagh energy plant in Galway which produces energy from natural gas and oil and Aughinish Alumina’s combined heat and power plant in Co Limerick were to receive over €48m in PSO subsidies between this year and last. The 100MW Lough Ree Peat Station in Lanesboro, Co Roscommon was to get €32m; the 150MW peat-powered plant at Shannonbridge, West Offaly €30.4m; and another €12m was to go to the Edenderry Power Plant mostly powered by peat.

At the bottom of all electricity bills are details of the Public Service Obligation levy which was established to support the country’s efforts to ensure security of electricity supply by developing indigenous fuels use.

Funds are taken out of the PSO fund if the revenue the plant receives for generating the electricity is less than what it cost it to produce the electricity. If the wholesale electricity market price is high, it should mean a lower PSO levy and vice versa.

Up to €51m subsidies was due to be paid this year to the renewable sector dominated by wind producers under the Refit scheme.

In 2013/2014, the levy was set at €210m, meaning that each domestic customer in the country paid €42.57 per year extra.