Simon Coveney (Cork South Central, Fine Gael)
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Question 67: To ask the Minister for Communications, Energy and Natural Resources if he will introduce legislation to set a time period for the complete phasing out of peat as a source of fuel for power generation by setting a clear date after which peat or turf will not be legally allowed to be used in power generation; and if he will introduce legislation to ensure that no new bogs are opened for commercial turf cutting. [14997/08]

Eamon Ryan (Dublin South, Green Party)
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Peat has been and remains an important element of Ireland's energy mix and still contributes significantly to security of supply by providing diversity in the fuel mix and as the primary indigenous fossil fuel resource in Ireland. It is, however, a declining resource and its overall contribution to the fuel mix for power generation will continue to progressively reduce over the next decade. Environmental sustainability is a key consideration in the continued production and utilisation of the peat resource.

Peat has been used for electricity generation since the 1950s. Its contribution peaked in the mid-1960s when it provided just under 40% of Ireland's total power generation. In 1980, it contributed 21% of the mix for power generation, while in 1995 this figure was 16%. It currently contributes approximately 7% of Ireland's electricity generation capacity.

Peat also contributes significantly to economic activity and the social fabric of the midlands region, with Bord na Móna providing employment for over 1,700 people, both full-time and seasonal, in 2006 and 2007. Bord na Móna owns approximately 7% of Ireland's peatlands and is the only company involved in the extraction of peat for electricity generation.

The current public service obligation order imposes an obligation on the ESB to have available electricity generated from indigenous peat at the generating stations in Shannonbridge, County Offaly, and Lanesborough, County Longford, up to 2019. It also imposes an obligation on the ESB to purchase electricity generated from indigenous peat at Bord na Móna's Edenderry power station up to 2015. Bord na Móna is working to progressively deliver 30% co-firing at its Edenderry power plant and is working with the ESB to assess the technical feasibility of a co-firing strategy at Shannonbridge and Lanesborough peat stations. Bord na Móna, with Government agreement, is to develop a portfolio of renewable energy, waste-to-energy and energy research and development projects as part of new strategic directions.

Reflecting the environmental significance of Ireland's bogs, Bord na Móna has developed policies and programmes aimed at protecting and restoring the peatlands in its ownership. Bord na Móna has already confirmed it will not acquire new peatlands for commercial development.

Additional information not given on the floor of the House

Bord na Móna is committed to preserving different bog types as well as areas of special natural beauty and significance. The company mitigates as far as possible the impact of its operations on wildlife habitats and rehabilitates its peatlands after use. To date, it has rehabilitated some 22% of its landholding. This includes the largest such programme undertaken to date in Europe, where 6,500 hectares have been successfully rehabilitated in north-west Mayo. It is also the case that commercial turf cutting on special areas of conservation and natural heritage areas is already prohibited under the EU habitats regulations and the Wildlife (Amendment) Act 2000.

In summary, therefore, the progressive reduction of the contribution of peat to power generation is ongoing as we work to re-balance Ireland's energy fuel mix towards renewable energy resources. At this point in time, peat still has an important contribution to make to security of supply. The Government is also very mindful of the continued important socio-economic contribution of the peat industry to the midlands region. A legislative ban on all peat extraction for electricity generation purposes would not be appropriate at this time. However, the long-term development of any energy supply source can only be ensured within the context of our meeting our overall greenhouse gas emission reduction targets.

Simon Coveney (Cork South Central, Fine Gael)
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I wish to clarify why I put down this question. The issue has raised concerns, particularly among certain employees in the midlands, and understandably so. What I want to ask the Minister is whether he would deem it appropriate to introduce legislation that would give leadership as to the timescale for a phasing out of peat as a fuel source in power stations over a medium to long-term period, which is already Bord na Móna policy, as we increase, over a period of time, the level of biomass and other power-generating fuels in the blend that is mixed with peat.

While peat is being phased out over a period of 15 to 20 years, we are also planning for the industries that need to follow peat production in the parts of the country that are hugely reliant on peat as a power source. This is the main reason I ask the Minister whether he intends to introduce legislation on the issue of opening new peat bogs — it makes environmental sense to continue to cut already opened peat bogs until they are finished — and also whether he intends to put legal certainty around when the phasing out of peat would be complete in power station generation.

Eamon Ryan (Dublin South, Green Party)
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Bord na Móna has already committed not to acquire new peatlands for commercial development. With regard to the medium to long-term use of the fuel, there are a number of constraints, one of which is our climate change targets. What we do in the energy area must ensure we meet, for this sector and as part of the overall national effort, our climate change targets. As the price of carbon increases, this will put certain constraints on heavy emissions fuels, regardless of what we do. The market systems will sometimes make it difficult for coal or peat plant to come into operation if carbon prices are set at a high level. We do not have control of that but it is a constraint. Any energy policy must bring us within the constraints of climate change.

There is another real constraint. In the substitution of peat in our power plants, we have an opportunity to develop a viable industry with the development of wood or other materials for burning in the peat plants. The difficulty in doing the detailed analysis of it is that even at a 30% replacement rate very large volumes of timber will be required which may divert timber supplies from other end uses for which they may be required. There is a constraint and in that it is difficult to know how we can completely replace peat in the existing power plants with a biomass substitute but it is something that makes sense because, first, it cuts our emissions and, second, it can develop a stable crop for farming. The two key constraints, therefore, are climate change and biomass alternative supplies but the company is making a clear commitment to move towards renewable energy products and renewable energy. To go back to what was said earlier about people who are experts——

Brendan Howlin (Wexford, Labour)
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I want to get in a brief supplementary. We are over time already.

Eamon Ryan (Dublin South, Green Party)
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——Bord na Móna is very good at logistics and management of land and that would provide it with real opportunities in terms of lower emission technologies.

Simon Coveney (Cork South Central, Fine Gael)
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The point of the question is whether the Minister intends to leave this issue to the market, essentially, and to Bord na Móna to bring about change in its own timeframe or whether he intends to introduce legislation to set that timeframe.

Eamon Ryan (Dublin South, Green Party)
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I do not have legislation planned in that regard. It is not completely down to the market. That is not what I said. Any energy policy decisions must be made on the basis of us meeting our climate change targets but also, looking at the broad energy security issues, three constraints must be taken into account: security of supply, cost and environment. There are constraints in that regard in terms of the alternative fuel supplies we can get to replace the peat and that is something we will take into account in a wide range of policy decisions.