Noel Dempsey (Meath, Fianna Fail)

I am delighted to have the opportunity once again to brief the House on the extensive measures being undertaken by the Government to achieve a more sustainable, cleaner and greener economy. This is the third time in the past 12 months we have debated these issues during Private Member's time with Fine Gael tabling two motions in this regard. As my colleague, the Minister for the Environment, Heritage and Local Government, pointed out, we are delivering significant changes and a range of policies that will enable Ireland to meet its climate change commitments and provide access across the entire economy to cheaper and cleaner energy.

I remind Deputies of our achievements in Government, and of our long-term commitments, which are being realised through immediate and tangible programmes and policies. In the past month, we have published two major policy documents, which underpin these commitments, establish medium and long-term targets and build on the programmes introduced. The White Paper, Delivering a Sustainable Energy Future for Ireland, and the bioenergy action plan are delivering benefits across all sectors of the economy. These policy papers deliver more than 200 clear and measurable actions and recognise that harnessing all forms of our indigenous and renewable energy resources is central to energy policy.

The specific Government targets outlined in the White Paper are one third of electricity consumption to come from renewable energy sources by 2020; a minimum target of 5% market penetration of renewables in the heat market by 2010 increasing to 12% by 2020; a 5.75% biofuels market penetration by 2010, increasing to 10% by 2020; and 30% savings in energy by 2020 across the electricity, heat and transport sectors.

In the area of renewable electricity the 15% target for 2010 exceeds our EU target of 13.2% and has been made possible through a co-ordinated long-term policy for the development of renewable electricity. As the Minister for the Environment, Heritage and Local Government, Deputy Roche, said, the target was imposed by the European Union when I came into this job two and a half years ago. The Opposition told us repeatedly that we had no hope of ever achieving it but it will be exceeded. Furthermore, we will achieve 15% by 2010. Between 2005 and 2010 we will have more than doubled the contribution from renewable energies to electricity production from 6% to 15%.

Since my appointment to the energy portfolio I have seen rapid progress in this sector. More than 1000 MW of renewable capacity are now connected to the national grid. Last year I replaced the previous competitive bidding support programme with a fixed price tariff support mechanism. This programme, REFIT, has been acknowledged and welcomed by the sector. In the past year we have accepted a further 55 wind farms ready to proceed under REFIT, adding a further 600 MW of capacity to the system. That level of growth is fully consistent with delivering the 15% target by 2010 and 33% by 2020.

Wind will provide the majority of additional renewable electricity capacity in the medium term. More than 60 wind farms are now operational with a combined installed capacity of more than 700 MW. We are also encouraging other technologies. For example, we have set a target of 500 MW of installed ocean energy capacity by 2020, which is backed up by a comprehensive ocean energy strategy. We have also established higher tariffs for biomass electricity and targets of 30% co-firing with biomass by 2015 in the three peat stations.

The focus on biomass in our electricity, heat and transport fuel policies will support the emerging market for energy from crops, agriculture and forestry residues and biodegradable waste. The Government's bioenergy action plan establishes a range of policies across the three energy sectors. The action plan was drawn up by Ministers from seven Departments and represents a whole of Government approach to developing the full potential of our indigenous biomass resources.

Biomass is particularly relevant in the heat and transport sectors, where new policies and programmes introduced by this Government are already impacting very positively. In renewable transport fuels, we have introduced two bio-fuels mineral oil tax relief schemes. Projects under these schemes are already delivering indigenously produced biofuels to the Irish market, blends of up to 5% in petrol and diesel which are being sold at regular petrol and diesel pumps across Ireland and higher blends sold to specific customers at various locations.

The scheme will allow Ireland to achieve market penetration of 2% by 2008. Building on these programmes, in February I announced that the Government would introduce a biofuels obligation later this year. Under the obligation, fuel suppliers will be obliged to ensure biofuels represent a certain percentage of their fuel sales annually. This will allow Ireland to achieve the targets of 5.75% by 2010 and 10% by 2020, as established in the bioenergy action plan and the White Paper.

I note the Opposition is calling for a programme to convert all public service vehicles to bio-fuels. The bioenergy action plan has already signalled this commitment from Government. Specifically, we have committed to promoting the use of biofuels in blends of up to 5% in local authority and CIE fleets, in line with the current fuel quality directive and standard vehicle warranties. The plan gives a further commitment that all new local authority and CIE vehicles purchased will be capable of taking biofuel blends in the range of 30% and higher.

We have also committed to a range of measures designed to increase market penetration of renewable energy in the heat sector. Once again, we have clearly flagged the Government's intention to commence a programme to convert public buildings to renewable energy. The OPW's new building programme is being developed so that bioenergy becomes the standard. Furthermore, in the next year, the OPW will convert 20 of the State's large existing buildings to bioenergy and will give more favourable consideration to leased buildings which use renewable energy. The action plan also commits to an initial target of 10% in energy savings in the OPW's largest buildings, through a new web-based energy monitoring programme, which will be expanded to cover 230 buildings.

These public sector initiatives are one component of a larger renewable heat development programme which spans all sectors of the economy. We have committed to targets of 5% renewable heating by 2010 and 12% by 2020. This will be realised through programmes such as ReHeat, which I launched recently, CHP and the Greener Homes programme. These programmes cover a wide range of sectors including the domestic, community, voluntary, public sector and commercial and business sectors.

The Greener Homes programme which was introduced over a year ago has been hugely successful with almost 14,000 applications for grant aid submitted by householders across Ireland in one year alone. In budget 2007, recognising the importance and significance of the programme, we increased its funding from €27 million to €47 million.

Clearly, the Government has listened to the public and responded swiftly to market demand. In the ReHeat programme, a similar process of engagement with the various sectors has resulted in an expansion of this programme. The programme was originally designed to facilitate the installation of bioenergy heating systems in commercial and business utilities and has attracted approximately 100 applications.

Last week I announced that the programme had been expanded to allow community, voluntary and school groups to apply and to broaden the range of eligible technologies to include solar and heat pumps. The ReHeat programme will cost €26 million over five years and complements an €11 million CHP grants programme which I introduced last year. Underpinning these programmes is a range of actions designed to encourage industry, business, the public sector and private consumers to reduce their energy consumption by applying energy efficiency practices and technologies.

The various programmes being rolled out by Sustainable Energy Ireland are having demonstrable success in this area and, in September, I launched the €10 million Power of One campaign, which is impacting on consumers the length and breadth of Ireland. The range, proportion and scope of the various programmes being rolled out provide concrete examples of how Government policy is rapidly developing and evolving to meet emerging consumer needs. They are also designed specifically to address the sustainability challenge including climate change objectives, security of energy supply, national and rural economic development. These schemes have already been put in place and are delivering results ahead of initial expectations.

We established clear and unambiguous targets in the White Paper, the bioenergy action plan and national climate change strategy and have produced a roadmap for the achievement of these targets. There can be no doubt about the Government's commitment and I assure Deputies we will continue with our ambitious agenda for real and tangible change, to the benefit of consumers, the economy and the environment.

A couple of weekends ago, and earlier last year, a proposal was made that all parties in the House come together to agree renewable energy targets for the future. I regret very much that the only party to refuse to participate was Fine Gael.

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