Dr. Brian Motherway:

The process of paying grants will be in transition in the coming year. As the Deputy may be aware, it is Government policy to move away from making up-front grants towards what is called a pay-as-you-save scheme, under which financial support will not be based on a grant but more on a loan model. Homeowners will pay for the work over a long period from the savings they accrue. Therefore, we are in the process of making changes to the scheme.

For the most part, we try to treat all installers in the same manner. If they have the wherewithal to manage our systems, we try to give them as much responsibility as possible. We try to deal with them on an individual basis. If the Deputy is aware of specific companies with issues, we would be happy to speak to them to discuss these issues or if they consider they are not being fairly treated and would like to do things differently.

Deputy John O'Mahony asked about homeowners. Ours is a large-scale system and we use online processing as much as possible. We have a quick approval process because it means most people can get on with the work involved. We also have postal channels and hotlines which people can call. We put a significant onus on contractors. The contractors who are registered with us and have signed up to the code of practice know the levels of installation required and the work they need to do for grants to be applied. We expect them to deal fairly with the homeowner in terms of what they propose to do in a home. If that does not happen, we try to resolve the issues involved.

We always try to deal with specific cases on a case-by-case basis. We decided last year to establish a special fast-track channel to allow Members of the Oireachtas to contact us to make us aware of particular cases that were proving to be difficult. We did this because we were receiving representations from Members of the Oireachtas. We deal with queries we receive at the special e-mail address, oireachtas@seai.ie, if it is possible to do so. I can circulate details of the system to members of the committee who may have queries.

Deputy Michael Moynihan asked about the warmer homes scheme, whereby the State takes on the full cost of upgrading from an energy perspective the homes of those in what is loosely known as the fuel poverty sector. We have upgraded approximately 90,000 homes in that way in the past few years. As the Deputy correctly pointed out, as part of a pilot scheme we are working in partnership with local authorities and other bodies to target whole communities, as well as individuals. We welcome the suggestion we should focus on particular sectors such as rural cottages. We hope to expand the pilot scheme next year in the context of the Government's new energy affordability strategy which was launched earlier this year. As well as dealing with individual queries and requests, the strategy places a focus on the area-based approach to which I have referred. We hope to continue to operate in this way in the coming years.

Deputy Michael Moynihan also referred to some of the concerns of local communities about wind energy developments. We are aware that in some areas wind energy projects are becoming more controversial and raising more concerns. It is very important that local concerns are listened to and addressed. The sector is getting better at consulting local communities and taking their concerns on board. We actively encourage wind energy project developers to place a significant focus on local consultation, involvement, benefits and participation in projects. That will help the sector to continue to grow.

Deputy John O'Mahony asked about the 2020 targets. We are confident that the targets can be met. The most significant progress in recent years has been made in the area of renewable electricity. This has been driven by a healthy wind energy sector which, in turn, has been driven by a healthy wind resource in Ireland which we hope will continue. The heat and transport sectors are probably more challenging because the technologies are not as mature or cost-effective as they are in the wind energy sector. We will continue to work on this issue.

I was asked about micro generation by farmers and others in local communities. We take the point that it is very important for local people to be able to supplement their income in this way, while also feeling the benefits of renewable energy production. From the perspective of the farmer, the challenge in the case of wind energy is that it is one of those technologies where the bigger it is, the more economically viable it tends to be for various reasons. Smaller devices tend not to be as quick at repaying one's investment. Nevertheless, we are seeing a healthy interest from the farming community and other rural sectors. They are interested not just from an economic point of view but also from an environmental stewardship point of view. We will continue to work with such individuals. The programme for Government contains a commitment to examine how the micro generation sector can be supported into the future.

The SEAI is very positive about the future of wave and tidal energy technologies for Ireland. The renewable energy resource available off Ireland's shores is truly massive. It could generate a great deal of clean electricity for Ireland and other countries. However, the technology is still immature. The technology associated with tidal power is technically easier. It involves locating a conventional-type turbine at a location where water flows in and out. A company in County Louth is exporting technologies to several countries. That is quickly becoming cost-comparative, but wave energy technology will take longer to develop. A number of Irish companies are developing devices, but none of them is yet fully mature. It is a new technological area which is still under development. The technology is still relatively expensive, but we are optimistic about where it can go in the future.

Deputy Michael Colreavy asked about the ambition for the sector. We certainly share the sentiment that this is a great opportunity for Ireland and more can be done. The targets may seem low, but they are challenging for the birth of a new sector. With the exception of wind energy which I have mentioned on a few occasions, the technologies we are discussing are still more expensive than conventional technologies, even though prices are coming down rapidly. The cost of solar power, for example, has reduced globally by over one half in the past five years, which has suddenly made it a much more viable technology. We hope to see prices continue to fall. However, there is a cost question in the short term, as some renewable technologies remain more expensive than conventional technologies, which is limiting their uptake from the State's point of view and also from the point of view of the consumer. I accept the point that renewable energy production brings stability to prices as it grows. The biggest cause of instability in electricity prices is the volatility of global commodity prices such as of gas and oil. We remain vulnerable as a small price-taker in these global markets. The more we can deploy our indigenous sustainable and predictable resources, the better the scenario for Ireland from an economic and environmental perspective.