Dáil debates

Tuesday, 10 February 2009

Other Questions

Alternative Energy Projects.

4:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 82: To ask the Minister for Communications, Energy and Natural Resources his views on criticisms that a year after the €26 million ocean energy programme was unveiled, only a fraction of the funding has been released; and if he will make a statement on the matter. [4549/09]

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 96: To ask the Minister for Communications, Energy and Natural Resources the progress that has been made in meeting the targets that the State has set for itself in terms of delivery of electricity power generation from wave energy sources. [4598/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 82 and 96 together.

The Government is giving high priority to supporting the development of Ireland's ocean energy potential. As the Deputies are aware development of this renewable energy source is at the very early stages and will require considerable research to bring it to fruition as a general source of energy. In this regard I launched the multi-annual ocean energy package last year. While I accept that progress in 2008 was somewhat slower than targeted I can report that significant progress has been made in completing the necessary preliminary tasks to ensure the proper functioning and financial management of the programme.

The ocean energy development unit base has been established within Sustainable Energy Ireland, SEI. This unit will manage the ocean energy strategy and generally administer the scheme.

Since its establishment the unit has invested significantly in the creation of a state-of-the-art national ocean energy facility in University College Cork. The unit is also managing the development of a grid-connected wave energy test site off the west coast. It has also commenced the ocean energy prototype fund, which will assist research projects in this area. The first tranche of applications and allocations from the fund will be decided within a matter of weeks. In addition, I have also announced the introduction of a new feed-in-tariff under the REFIT scheme for wave and tidal technologies of €220 per megawatt hour, which will be available to future full-scale projects connected to the grid.

The unit has also established an advisory group comprising my Department, the CER, the Coastal Zone Managing Authority, Enterprise Ireland, EirGrid, ESB Networks, IDA Ireland, the Marine Institute and Science Foundation Ireland, to co-ordinate the activities of these agencies in developing and delivering an efficient roadmap for ocean energy.

The ocean energy development unit has also commenced work to deliver studies of common interest to the sector including a study on the engineering and specialist support requirements for the sector in order to enhance Ireland's capability to maximise participation in the construction and operation of wave and tidal systems; a review of the planning regime for ocean energy development, a strategic environmental assessment for ocean energy in Irish waters, to investigate partnership with industry for data gathering and processing, and a detailed review of the macroeconomic benefits that ocean energy can deliver for Ireland.

Expenditure in 2008, at just over €1 million, reflects the fact that each of the component measures was in the process of being established and I am advised that this pace will accelerate and the full allocation of €7 million in 2009 will be spent.

I am confident that delivery of the Government targets of 75 MW by 2012 and 500 MW by 2020 — which should be seen as the base of our ambitions, not a limit on them — from ocean energy technologies will be enabled as the current research and prototype development and that Ireland's considerable potential in this area can be realised.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Does the Minister accept the gulf between his rhetoric and his record is such that it leaves him vulnerable to criticism? When he launched this so-called €26 million programme on ocean energy in January 2008, he said he was setting out to ensure Ireland would win the race in establishing a viable ocean energy device. Will he not accept that other countries are in the process of winning that race and that we have failed in regard to the first ambition the Minister set out for himself? He said we had the most sophisticated State-support system for ocean energy in the world. He has not been able to get his unit up and running in time to spend the €5 million he was supposed to spend last year, so sophisticated is his record in terms of support.

Will the Minister outline exactly how the €26 million will be spent? He has already lost one year, where he has spent only €1 million. This year he is talking about €7 million; what is the situation as regards the following year, 2010?

I have a specific question, too, on the applications, which were sought only in November by the Department. How many applications have been sought, how many proposals have been received and what is the funding available for them?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Does the Minister not see the potential of both offshore wind and wind energy in this area? Has he not got the wherewithal to ensure we are the world's leading experts in this area? This is something that is natural to this country. We, on the Joint Committee on Communications, Energy and Natural Resources, have prepared legislation in this regard because we do not even have modern legislation to deal with this. This legislation got buried until people such as myself and others started to make noises. Is the Government serious about the €16 billion investment in this area? Is it serious about getting this up and running? Ireland is an island stuck in the Atlantic, where we have natural resources second to none. Can he not please show us action to ensure we become the leading country in the world in this area?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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We have in our country a cluster of new independent Irish companies that have real opportunities to become world leaders in this area. They are working with international utilities and investors that are seriously considering investment in Ireland. We have to get a number of measures right for that. The budget figures are important, but they are not the crucial constraints. What Deputy Barrett says is true. The first thing they want is certainty around planning and community support. When one talks to the companies considering investment here, these are the first issues about which they are concerned. In that regard, I am confident we have the right people in the ocean energy unit. It may be some months late, but I prefer to get the right people in and the right strategy in place while taking the type of advice we are being given on the planning side, and putting that into action.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Government spend is €26 million.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The budget will not be measured in the €10 billion or €20 billion about which we are talking here. We are talking about a large multiple of that, if any one of these devices becomes commercially viable.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Minister will not even confirm the budget of €26 million.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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This is as important for the State, to my mind, as the date when Intel erected a small cabin in Leixlip, because if one of these devices works and takes off, we shall be talking in terms of billions, not tens of millions. The crucial test for us is getting community support behind it because that is what the investors need in terms of confidence about planning and getting our planning system right. The ocean energy unit within our Department, in conjunction with others, is charged with delivering on that task.