John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources with regard to the introduction of Refit 3, and its importance to the biomass supply chain here, the reason there has there been such a the lack of interest in it being shown by relevant State companies; and if he will make a statement on the matter. [53264/12]

Alan Farrell (Dublin North, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources his proposals to accelerate an increase in renewable energy resources through wind, wave and sustainable biomass as an alternative to importing fuels; the groups that are responsible for reporting this matter; and if he will make a statement on the matter. [53156/12]

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources if he is satisfied with regard to the extent to which the development of alternative energy generated electricity has taken place to date; if he has identified any particular obstacles which might impede the achievement of national and European targets in this regard; if he will indicate the main sources of alternative energy currently used for this purpose; if other sources deemed to be commercially viable have been identified; and the extent to which each segment of the alternative energy sector is likely to meet its targets in electricity generation over the next four years; and if he will make a statement on the matter. [53274/12]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 10, 13 and 16 together.

In order to meet our 2020 binding targets, the Government is committed to increasing renewable energy to 40% in the electricity sector, 10% in the transport sector and 12% in the heating sector, which together amount to 16% overall, in line with our target under the EU renewable energy directive. A number of organisations are providing details on progress in this regard. This week, the Sustainable Energy Authority of Ireland, SEAI, published its 2012 report Energy in Ireland. The total use of renewables in Ireland almost trebled between 2003 and 2011. The report showed that, in 2011, Ireland had 17.6% renewable electricity, 2.6% renewable transport and 4.8% renewable heating, meaning that, in total, 6% of all energy consumed was from renewable sources. Other bodies, such as EirGrid and ESB Networks, report on matters such as daily wind energy penetration and grid connection issues.

To meet our current energy demands, we are importing around 90% of our required fuel. This is at a cost of approximately €6 billion per annum. Developing renewable sources of energy will help Ireland to meet our 2020 targets and to reduce our dependence on these fuel imports by replacing them with indigenous resources. Ireland has renewable energy infrastructure generating approximately 2000 MW connected to the electricity grid. To meet our renewable electricity targets for 2020, it is estimated that a further 2000 MW of renewables will be required.

In addition to achieving this ambitious target, a significant challenge will be to ensure we are able to build the necessary supporting grid infrastructure to accept new renewable generation, which is typically in more remote areas that have weak grid systems. Our ability to get this infrastructure built is critical to achieving our renewable energy ambitions. In this regard, EirGrid’s GRID25 strategy and implementation plans are designed to deliver the necessary grid developments and reinforcements to underpin the new renewable generating capacity, in addition to regional economic development.

To incentivise the development of renewable electricity, a feed-in tariff scheme is in place. Renewable energy feed-in tariff, REFIT, which was introduced in 2006 for wind-sourced generation, small hydro, landfill gas and biomass-generated electricity, operates by guaranteeing a minimum floor price for renewable energy generation over a 15-year period. In order to accelerate the uptake of renewables, two new REFIT schemes were introduced in 2012. The first, REFIT 3, is to encourage biomass-sourced generation, and the second is to encourage further wind-sourced generation into addition to generation from small hydro and landfill gas. The REFIT schemes are funded through the PSO levy that is funded by all electricity consumers.

REFIT 3 is designed to incentivise the addition of 310 MW of renewable electricity capacity to the Irish electricity grid. The technologies supported include anaerobic digestion and combined heat and power, which will also contribute to our renewable heat targets. It also contains incentives for cofiring of biomass in peat powered generation plants with a premium for the use of energy crops. REFIT 3 will, over time, create further demand for biomass, which will provide new opportunities in the biomass sector and encourage the establishment of new rural enterprises.

The electricity market is fully liberalised and decisions to participate in the scheme are commercial for the individual electricity generating companies involved. I am informed by my Department that there has been significant interest in the REFIT 3 scheme and letters of offer have been given for approximately 44 MW of generation with a similar amount under consideration. Other developers are at earlier stages of development with their projects.

Michael Moynihan (Cork North West, Fianna Fail)
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A number of people have invested in miscanthus or elephant grass, as it is most commonly known. When they invested, it was indicated that State companies would be purchasers down the line but some of them, in particular Bord na Mona, have made no attempt to do so under REFIT 3. There is an issue with the supply chain in the biomass industry for primary producers of elephant grass. The State must reach its target for renewables, as the Minister said, and many people are getting involved in the sector but notwithstanding the commercial issues, State companies should step up to the mark and embrace these alternative energy sources.

Alan Farrell (Dublin North, Fine Gael)
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I thank the Minister for his response. I have a slight concern about our ability to reach the targets outlined by him. He said the target by 2020 is to provide 40% of our energy needs through renewables but, according to his figures, we are currently at 6% while 44 MW of generation have been approved under REFIT 3 with another 44 MW in the pipeline. This is less than 100 MW of energy and we have a much higher target to reach by 2020. I read an article recently, which stated Scotland is aiming to reduce its fossil fuel energy use by 12% by 2020. The resources available around our coastline, particularly off our west coast, include the potential for wave energy generation and further incentivisation of companies other than EirGrid and smaller operators to enter the market through PPPs or licensing arrangements is necessary. The volume of non-fossil fuel energy generation could be increased.

Clearly, we have significant work to do in this area. What proposals has the Minister?

Pat Rabbitte (Dublin South West, Labour)
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I hear what Deputy Moynihan says about the exhortation he would offer to State companies in terms of an expectation that they could play a more significant role than they are playing. I had representations earlier this week from my party colleague, Senator Heffernan, and Deputies Neville and O'Donovan about a company in west Limerick, which may well have prompted the Deputy's question. It is similar terrain in any event. I did not have an opportunity because of the week that was in it to meet them but I will meet them next week and examine the points Deputy Moynihan is making. It goes back to our earlier discussion about Bord na Mona in the sense that the company is not in a position to make a bigger contribution in present financial circumstances on the elephant grass issue.

Deputy Farrell misunderstands the figures I gave. The 40% renewable energy target relates to electricity generation while the 6% target relates to the electricity, heat and transport sectors combined. At the beginning of the year, 17.6% of our electricity was being generated from renewables and we are relatively sanguine that we will meet the 40% renewables target by 2020 in the electricity generation area.

I will not make pledges in respect of heat or transport because there are complex issues, one of which relates to agriculture and the fact that following the end of the milk quota regime, there may be greater capacity in that sector in the future. The 44 MW to which the Deputy referred relates to biomass; it is not the overall total. We have 2,000 MW of generation in place and the further 2,000 MW necessary to meet the 40% electricity generation target will be doable. The industry has raised issues about how we might make better use of biomass and so on to contribute in the heat sector and particular issues have to be dealt with in the transport sector.

The figure of 6% refers to all energy consumed from renewable sources in the three sectors but in terms of electricity generation, we maintain we have a good prospect of meeting our target.