Oireachtas Joint and Select Committees
Tuesday, 27 February 2018
Joint Oireachtas Committee on Communications, Climate Action and Environment
2020 Climate and Energy Package: Discussion
3:00 pm
Mr. Kevin Brady:
The first one question is: what is the block to offshore wind? Traditionally, it has been cost. The cost differential between offshore wind and onshore wind has been significant. That is coming down. Internationally, we are seeing the cost of offshore wind coming down. They are not level yet. However, when we look at the renewable electricity support scheme, there is a proposal for a technology neutral auction so we would not necessarily be selecting technologies. There would be an auction of whatever can bid in.
This committee has heard previously that there is potential for different people looking for different pots for different technologies. I refer to looking at a segmented amount for solar, offshore wind or bioenergy. That is an alternative approach. Anything that moves away from that would mean potentially a higher cost for the consumer. However, I think the main difference in terms of why offshore wind has not been a success in the past and should be in the future is that dramatic reduction in cost we have seen.
In respect of bioenergy, undoubtedly, we have a large potential for biogas, biomethane or renewable gas or whatever we want to call it. There are two main items we are working on at the moment. One is we need absolute certainty from EUROSTAT on exactly how biomethane injected into the grid will be treated in regard to our renewable energy targets and our emission reduction targets. We need to know, from the point of view of the Exchequer if we are going to fund the scheme, exactly how that can count towards our targets. Will it just go in and be a mix or can we direct it towards the heat sector?
The second point is the business case. This is under the support scheme for renewable heat. In order to support this, we need to put together a strong business case to show why and how we can spend Exchequer funding on biomethane injection.
That is something we are working on at present. We have committed to the industry that we will look forward to the Budget Statement 2019 to bring that forward.
In terms of some of the other technologies mentioned by Deputy Stanley, I have covered biogas, biomass obviously has been quite successful in the heat sector, and the support scheme for renewable heat, SSRH, should bring that along further. In terms of solar energy, the renewable electricity support scheme , RESS, comes into play and there are questions on whether it is technology neutral or not. We looked at geothermal energy in terms of the support scheme for renewable heat, SSRH, and included it in our economic analysis. We found a very low take up at a comparable level of tariffs. In terms of hydo, we have had some development in small hydro energy, as the big barrier there is probably our geography.
On the question of freight emissions, freight emissions are around one quarter of the emissions in the transport sector, which is obviously the largest part of our emissions in the non emissions trading scheme, ETS, sector, and transport accounts for approximately 58% of non-ETS emissions.
The movement of freight to lower emissions fuels such as compressed natural gas, Gas Networks Ireland, GNI, are rolling 14 publicly accessible filling stations, but there is also the potential for biomethane or renewable gas to be injected into the grid and be directed at transport to further decarbonise it. That is a potential path for freight.