Changes to REFIT announced at IWEA Conference in March 2013

Clair Hayes comments on the recent announcement by the Minister for Energy and the implications for REFIT 1 and REFIT 2. Changes to REFIT were announced in a speech delivered by the Minister for Energy Mr. Pat Rabbitte T.D. to the Irish Wind Energy Association annual conference on 27th March 2013 In an effort to establish policy certainty and thereby achieve Ireland’s 2020 renewable electiricty target, the Minister stated that the Government had made a decision on support scheme flexibilty. Firstly, in light of the fact that a significant portion of Gate 3 is likely to connect post 2015, the terms and conditions of REFIT 2 will be amended so that, while the measure will continue to be open for applications until 31 December 2015, projects must be built and operational by 31 December 2017. The support for any project cannot exceed 15 years and may not extend beyond 31 December 2032. Secondly, the terms “fully commissioned” and “operational” in REFIT 1 and 2 will be replaced with a new definition for “connected”. A project will now be “connected” where the REFIT PPA has commenced on the basis of having 75% installed capacity within 9 months of 31 December 2010 (or the date on which a project has been granted an extention of time) in the case of REFIT 1 and 9 months of 31 December 2017 in the case of REFIT 2. Finally, the minister stated that his Department has sought clearance from the EU Commission to extend the REFIT 1 backstop date for a two year period up to the end of 2027. A decision, he said, is expected on this in the near future. Clair Hayes is a solicitor at the Renewable Energy Unit at McDowell Purcell Solicitors.