15/09/2009

Boost For Power Producing Landfills

Electricity generated from landfill gas will be provided with a higher level of financial assistance, the Northern Ireland Energy Minister has said.

Arlene Foster's announcement follows approval from the European Commission to the enhanced support under its State Aid rules.

Welcoming the Commission's support, Minister Foster said: "This is good news for Northern Ireland.

"It will help to fully achieve our potential to generate electricity from landfill gas, providing us with an alternative and reliable source of electricity.

"Landfill gas generation in Northern Ireland is currently less advanced and more costly than in Great Britain, so it is important that we put in place a level of support that will allow us realise its benefits as a renewable energy source," she said.

Support for renewables development in Northern Ireland is provided through Renewables Obligation Certificates (ROCs) issued under the Northern Ireland Renewables Obligation (NIRO).

These ROCs currently trade at around £50 and are awarded to generators for each unit of output according to type of generation or renewable source used.

The NIRO operates alongside two similar Obligations in Great Britain, one for Scotland and one for England and Wales. Generally there is a high degree of consistency between the three Obligations and the ROCs from all three trade on a UK-wide basis.

When different levels of support were introduced in April this year, GB decided to reduce the support for landfill gas generation to one-quarter (0.25) of a ROC for each megawatt-hour of output and, pending the Commission's State Aid clearance, that 0.25 level has also been applied to Northern Ireland.

Meanwhile, consumers across NI are to get price cuts in both their electricity and gas bills.

See: NI Power Costs Falling

(PR/BMcC)

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