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ARTICLE · 15 AUGUST 2013

European Commission Approves Extension To Backstop Date For REFIT 1

The European Commission has granted state aid approval to extend the backstop date for support under the Renewable Energy Feed-in Tariff scheme 2006 for an additional two year period up to the end of 2027.

IrelandEnergy and Natural Resources

The European Commission has granted state aid approval to extend the backstop date for support under the Renewable Energy Feed-in Tariff scheme 2006 ("REFIT 1") for an additional two year period up to the end of 2027.

REFIT 1 supports the construction of new electricity generation plant powered by wind, biomass and small scale hydropower. Payments are made to suppliers who enter power purchase agreements with renewable electricity generators who are in receipt of a REFIT Letter of Offer from the Department of Communications, Energy and Natural Resources ("DCENR"). RE-FIT 1 is supported by funds levied from Irish electricity consumers through the Public Service Obligation ("PSO") mechanism. As Ireland's PSO mechanism constitutes a form of State aid, the Irish Government was required to obtain EU approval in relation to the establishment of RE-FIT 1 and changes to the scheme.

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