Noel Dempsey (Meath, Fianna Fail)

It is becoming clear that increased concerns regarding global security of energy supply puts the challenge of finding sustainable alternatives top of the energy policy agenda. With regard to promoting the production of clean energy, in April this year we launched a scheme for mineral oil tax relief for biofuels. Under the scheme eight projects were awarded excise relief valued at €6 million over a two-year period to 2007. The number of applications in the pilot scheme clearly indicates the strong interest in a biofuels industry in Ireland. I have had contact with the Minister for Finance about the possible scope for scaling up fiscal support for biofuels.

The promotion of renewable energy technologies in electricity production is a key priority of this Government and we are working to achieve our EU target of increasing the amount of electricity from renewable energy sources to 13.2% of total consumption by 2010. This will mean that approximately 1,400 MW of capacity from renewable sources to be connected to the electricity network by 2010. This is a challenge which will require us to more than double existing capacity within five years. This is the minimum target I am demanding and I am confident it will be achieved. In this context I recently announced a new support mechanism to be known as the Renewable Energy Feed In Tariff, REFIT. This revised system will move away from competitive tendering to a fixed price proposal.

In July my Northern counterpart, Angela Smith MP and I published a preliminary consultation paper on an all-island vision for renewable energy to the year 2020 and beyond. This is aimed at developing a long-term strategy for renewable energy on the island as a whole.

The terms governing petroleum exploration and development are kept under constant review by my Department. These terms are attractive by international standards and are designed to encourage exploration in the Irish offshore. I have no immediate plans to reform the terms at this time.

Exploration and development of minerals is undertaken by private enterprise and regulated under the Minerals Development Acts 1940 to 1999. All extraction of minerals under the Acts is subject to payment of royalties to the State. While it is my intention to consolidate and update those Acts in a new Minerals Development Bill currently in preparation, I do not propose to change that policy.

See this speech in context