Alex White (Dublin South, Labour) | Oireachtas source

The 2009 EU renewable energy directive set Ireland a legally binding target of meeting 16% of our overall energy requirements from renewable sources by 2020. To meet this target Ireland is committed to achieving a 40% renewable energy contribution in electricity, 12% in heat and 10% in transport. In 2013, some 7.8% of Ireland's overall energy requirement was met by renewable energy with renewables accounting for 5.7% of the energy in the heat sector.

Measures currently in place, including Part L of the building regulations and the combined heat and power supported under the REFIT 3 scheme, are expected to increase the uptake of heat from renewable sources. However, analysis by the Sustainable Energy Authority of Ireland, SEAI, suggests that in the absence of further measures, a shortfall of between 2 and 4 percentage points could emerge in the renewable heat sector. This would represent between 1 and 2 percentage points in terms of the overall renewable energy target. Any shortfall in meeting the overall renewable energy target in 2020 would need to be addressed by purchasing so-called renewable energy credits from another member state. While the cost of such credits has yet to be established, the SEAI has estimated it could be in the range of between €100 million and €150 million per percentage point shortfall. This means a shortfall in the heat sector could cost between €200 million and €300 million in renewable energy credits. There could also be penalties associated with any shortfall.

Analysis underpinning the draft bioenergy plan published in October last year indicates that an additional bioenergy focused measure in the heat sector would constitute the most cost-effective means of meeting a number of different policy goals, including addressing the potential shortfall in our renewable heat levels. The draft plan recommends the introduction of a renewable heat incentive in 2016 to incentivise larger heat users in the industrial and commercial sector to change to heating solutions that produce heat from renewable sources.

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