Dáil debates

Tuesday, 6 May 2014

Ceisteanna - Questions - Priority Questions

Renewable Energy Generation Issues

3:20 pm

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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110. To ask the Minister for Communications, Energy and Natural Resources in view of the advances in the technology for generating electricity from biomass, if his Department has considered reviewing the renewable energy policy to focus on biomass rather than wind to achieve our renewable targets and if he will make a statement on the matter. [19989/14]

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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At the time when the renewable energy strategy was devised, wind energy generation was probably the easiest way to achieve the 2020 targets required to meet our EU commitments. However, technological developments in recent years have meant that the use of biomass has become very attractive, particularly convection. Has the Department considered reviewing the policy and refocusing it? While wind energy will always be an option, we could focus on the potential of biomass to help us to reach our targets.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I thank the Deputy for putting this question.

I can confirm that we are very much looking at the biomass policy and apart from a couple of final meetings between the Minister, myself and the Department, I expect to be in a position to publish the strategy document by the end of this month. As we are meeting those involved in the industry all of the time, we will be consulting them about a body on which they will be represented and to which they can make comments on the policy produced. I answer in the affirmative that we are very much looking at increasing the contribution of biomass.

The Renewable Energy Directive, published in 2009, set a legally binding target of 16% of our energy requirements from renewable resources by 2020. We are committed to meeting 40% of electricity demand from renewable sources by that time. In that regard, our policy interventions are designed to incentivise the market to deliver the necessary renewable generation capacity. The choice of technology is a commercial decision but the Renewable Energy Feed-In Tariff, or REFIT, is the primary means through which electricity from renewable sources is supported in Ireland. To date, wind energy has proved to be the most commercial technology in the Irish market and provisional figures for 2013 indicate that 16.4% of energy demand in the electricity sector was met from wind. Nevertheless, diversification of the renewable generation portfolio will be important for creating a sustainable, carbon-free electricity system. To that end, the Minister published the offshore renewable energy development plan earlier this year to establish the framework within which we can realise the potential of our potential.

Biomass will continue to be used in electricity generation and is likely to have a significant role in the heat and transport sectors. We will be publishing our strategy shortly which will set out our proposals to optimise the contribution that energy from biomass can make to achieving our 2020 targets.

3:25 pm

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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I thank the Minister of State for his response and welcome the fact that a strategy is due to be published. I look forward to seeing it and examining its proposals. It is very important to consider electricity generation from biomass in the strategy. There is a project under way in Yorkshire at the moment to convert the largest coal-fired generating plant in Europe to biomass, which is technologically feasible and will contribute hugely to a reduction in carbon emissions. We should be looking at an adventurous programme like that, perhaps targeting Moneypoint for conversion to biomass, which would achieve the target of 40% renewable energy practically overnight. I hope the strategy will reflect that and will examine how that could be implemented. There is also huge potential for the development of a supply chain for the biomass industry and biomass power generation, particularly in the context of the amount of cut-out bog owned by Bord na Móna. Rather than using that for wind turbines, it could actually generate an indigenous industry delivering biomass for power generation and for export.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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A recent report produced by Rethink Pylons stated that converting Moneypoint from coal to biomass would meet our targets of 40% without the need to upgrade the grid or for further wind development. It argued that the conversion would cost €380 million, which is approximately 10% of the cost of upgrading the grid. The decision on the fuel type to be used would be a matter for the operator. However, there are a number of wider issues that would demand further consideration and deliberation. In summary, the amount of biomass needed to complete the conversion is 6.4 million tonnes on a continuous basis. Such an amount would not actually be available in Ireland and most of it would have to be imported. Such large scale levels of imports would call into question the environmental sustainability of such operations as well as raising transport and land-use issues. Any support for biomass at Moneypoint would require State aid approval. Were tariffs similar to those for biomass under REFIT 3 to apply, the cost of the public service obligation, PSO, would significantly exceed the cost of the 310 MW supported under the REFIT 3 scheme, without making any contribution to renewable heat targets.

As I said earlier, we will have an opportunity in a few week's time to debate these issues more fully.

3:30 pm

Photo of Thomas PringleThomas Pringle (Donegal South West, Independent)
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It is interesting that the plant in Yorkshire has signed contracts for the delivery of biomass from New England. It will be shipped there and transported inland to the plant. Moneypoint is on the coast, so one could ship biomass directly to that plant which would be significantly cheaper than what is happening in Yorkshire.

There is also the potential to develop our own indigenous industry to supply biomass, as well as developing export growth in that regard. It would provide sustainable jobs without damaging local communities, thus allaying concerns about the use of industrial wind turbines. I look forward to seeing the introduction of the strategy. If the refit needs to be redesigned or tweaked we should start that work now. This is a way of achieving our targets without the amount of pain in evidence across the country at the moment.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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While the issues raised by the Deputy are not in my briefing document, I will be happy to obtain a briefing on the plant in the UK and share those data with him. I assure the Deputy that we want to increase the use of indigenous biomass on this island. I am happy to take on board the issues the Deputy has raised and will get an official response for him. When the plan is published we will have a full and proper debate on all the issues.