Oireachtas Joint and Select Committees
Wednesday, 3 May 2023
Joint Oireachtas Committee on Agriculture, Food and the Marine
Biomethane Renewable Gas: Discussion
Ms Karen Doyle:
I might add to that in regard to the transport sector. At the moment, the only support available, outside of the electricity renewable energy feed-in tariff, REFIT, 3 scheme, is in the transport sector and we are seeing considerable flows of biomethane into that sector, which is very positive. That shows that if there is an appropriate support scheme that incentivises correctly and does not over-incentivise, product will flow. The challenge we see with the transport sector is that that is a short-term view, with a one-year window, which is not enough for investors to build additional plants.
If we look to the electricity sector, where Ireland has been extremely successful to date, what we have done well, along with other countries, is give a longer-term price signal to investors, which has allowed projects to be bankable at a high level of debt and a low price, ultimately resulting in a lower price for end users. We would seek a longer-term signal in the market, under the renewable heat obligation in order that people can invest in these plants and in high-quality technology, mindful of the communities in which they are building and will operate over the long term. It is important that that support be set at the correct level in order that high-quality plants can be built and operated.