Alex White (Dublin South, Labour) | Oireachtas source

The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy for all consumers. A well balanced fuel mix that provides reliable energy, minimises costs and protects against supply disruptions and price volatility is essential for Irish consumers. Fossil fuels will remain part of the energy mix as we transition to a largely decarbonised energy system by 2050.

The choice of fuel used in the plant at Moneypoint is, in the first instance, a matter for the operator, the ESB, and I have no role or function in this regard. No specific cost-benefit analysis has been undertaken by my Department of the potential or otherwise of converting the plant to use biomass. However, there are a number of important issues that would need to be considered in this regard.

The conversion of Moneypoint to biomass would require significant levels of capital investment by the operator. In recent weeks I have seen the figure of €300 million for the cost of conversion. Support tariffs substantially higher than those available for wind, which has been the most cost-effective renewable technology in the Irish electricity market, would also be required which could lead to increased electricity prices. Substantially more biomass than is available domestically would be required, with large amounts of the resource having to be imported, leading to potential uncertainty in terms of security of supply. The sustainability of transporting large amounts of imported biomass would also be a cause for concern. The commitment of substantial amounts of biomass to Moneypoint would divert scarce biomass away from the renewable heat sector, where biomass can be used more efficiently and where fewer alternative technologies exist. Before Moneypoint comes to the end of its operating life in its current configuration, in 2025, the most suitable replacement low-carbon generation technology will have to be identified.

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