Dáil debates

Thursday, 23 October 2014

Ceisteanna - Questions - Priority Questions

Alternative Energy Projects

9:50 am

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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3. To ask the Minister for Communications, Energy and Natural Resources his views on the conversion of Moneypoint power station to biomass as a move towards meeting our European targets for renewable energy; and if he will make a statement on the matter. [40482/14]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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My question concerns the raging debate about the need to consider options such as biomass as opposed to plans for industrial wind farm, which have been the subject of much of the focus. Some €3.8 billion is planned to be spent on boosting our transmission system to facilitate controversial large wind turbines. There are major arguments against this and I do not have the time to go through all of them, but many people believe that this is not the best route to take. For example, the simple measure of converting Moneypoint to biomass would go a long way towards meeting our greenhouse emission targets at a fraction of the cost of industrial wind farms. Is the Government considering this option and what is its response?

Photo of Alex WhiteAlex White (Dublin South, Labour)
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This is a timely question, what with the European Council meeting today and tomorrow about targets, so I thank the Deputy for raising the issue.

The 2009 EU renewable energy directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. Policy interventions are designed to incentivise the market to deliver the necessary renewable generation capacity. The REFIT schemes are the primary means through which electricity from a range of renewable sources is supported in Ireland. These schemes are paid for by electricity customers through the public service obligation.

Although wind energy is expected to contribute most towards the achievement of the 2020 target, diversification of the renewable generation portfolio in the longer term will be important for creating a sustainable and carbon-free electricity system. Biomass will have a role to play and, depending on electricity demand, the full implementation of current policies could mean that up to 5% of electricity might be generated from biomass in 2020.

The choice of technology is, however, a commercial decision for individual project developers and the fuel used in the plant at Moneypoint is a matter for the operator. I have no role or function in that regard. Notwithstanding this, I am advised that a number of important issues would demand further consideration before biomass could be used at Moneypoint. These include the following: the conversion of Moneypoint to biomass would require significant levels of capital investment by the operator; 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 would 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 questions about sustainability and security of supply; and 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.

As I have stated, any decision on the choice of technology in Moneypoint is a matter for its operator, having regard to national and EU energy policy.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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We must consider matters such as this holistically. We plan to spend €3.8 billion to boost the transmission system so as to facilitate plans for industrial wind farms. This affects people in the midlands, but there is also major concern about and opposition to the proposal to build one of the world's largest wind farms on the Kish bank in Dublin Bay. Conversely, it is estimated that it would cost approximately €380 million to convert Moneypoint, just 10% of our planned spend. It is true that there is not enough biomass in the country to fuel it, but it is also true that the largest coal-burning plant in Britain was recently converted to biomass and has found a source of biomass to supply it at a fixed, reasonable cost.

There are strong arguments to the effect that biomass is much better at helping countries to meet targets. We would need to expand our biomass capacity indigenously, but it is important to note that Coillte has a significant amount of land that could be developed to expand biomass. According to the McCarthy report, 500,000 acres of its land are not being used to grow trees.

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I am interested in all of the issues that the Deputy raised and I genuinely thank him for doing so. The Green Paper on energy was published this year by my predecessor, Deputy Rabbitte, and we are moving towards having a White Paper in the middle of next year. I want the involvement of all Members across the House in this issue.

Deputy Boyd Barrett is right about the concerns, particularly in rural areas, regarding wind turbines. I understand, appreciate and respect those concerns. However, we must make decisions for the country's future. If we pull back from wind energy, we must replace it with something else. I am glad that the Deputy acknowledges this. It is easy to say that we should pull back from wind energy without offering an alternative but, in fairness to the Deputy, he proposed biomass. We have considered it. The argument is that the conversion of Moneypoint would cost in the region of €380 million, but that figure has not been independently verified. Regardless, it is a matter for the operator. The Moneypoint facility cannot burn biomass currently, so an investment would be required. One would also need to consider the question of state aid approval in respect of any new support for biomass. Were the targets for biomass similar to our targets for wind energy, there would be a significant additional cost. As such, there would be a knock-on cost for the consumer and the State. These are the issues with which we must wrestle.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I welcome the Minister's statement that we must get together to discuss this matter. Many people with enthusiasm for, knowledge of and interest in this issue must be included urgently. If we do not believe that industrial, large-scale wind farms are the answer, we must develop alternatives. We need that debate quickly. I am convinced that the industrial wind farm model does not give the best value for money and is not the best way to reduce carbon emissions. Although it needs to be investigated, biomass appears to be a better option in the long term and more appropriate for this country, in that we are capable of growing trees at a fast rate and have a great deal of land on which to do so. For example, Coillte has 500,000 acres of land with which it is doing nothing. We could utilise that land to develop alternative forms of renewable energy.

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Deputy's argument is a compelling one, but the other aspect of this debate that we must understand is that biomass, unlike wind, is a scarce resource. We published a bioenergy plan some time ago. Perhaps the Deputy might read it. The view is that biomass is more likely to have a significant role in the heat and transport sectors as opposed to the areas the Deputy is advocating. I am willing to have this debate, but it should be based on facts and evidence. I respect and understand people's concerns about wind energy, particularly turbines, but we must also recognise that we have targets to achieve by 2020. If we pull back from one route, we must take another. Wind has proven to be the most accessible and cheapest form of renewable energy in the State so far, but if we can come up with an alternative, let us debate it together and see how we manage.