Joan Burton (Dublin West, Labour)
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Question 105: To ask the Minister for Communications, Marine and Natural Resources his views on fiscal incentives to promote renewable and alternative energy sources; and if he will make a statement on the matter. [27888/05]

Noel Dempsey (Meath, Fianna Fail)
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My Department operates a number of fiscal incentive programmes aimed at promoting the integration of renewable technologies. To date in Ireland, 675 MW of renewable capacity has been connected with a further 175 MW under active construction. Further development will also take place from the last two rounds of competitive tendering, the AER V and AER VI competitions.

Last month, I announced a new support programme to further increase the contribution to electricity production from renewable energy sources. This new programme will move away from the competitive tendering model to a fixed price scheme. This means that any applicant, whether an individual or company, may submit an application at a fixed price based on technology and, in the case of wind, the capacity of the project.

In the area of alternative fuels, the biofuels mineral oil tax relief scheme was launched in April this year and has resulted in eight biofuels projects being awarded excise relief for a period of two years. Excise relief of €6 million will be allowed for these projects, over a two-year period to 2007. It is anticipated that this will result in 16 million litres of biofuels replacing imports on the Irish transport market during that period. The scheme is an initial measure designed to stimulate market development.

In addition to these initiatives, Sustainable Energy Ireland administers a series of programmes aimed at supporting the integration of renewable technologies and sustainable energy practices across all sectors of the economy. Its programmes include: the house of tomorrow programme which supports sustainable energy practices in Irish housing, by providing grant aid to developers of groups of housing; the public sector buildings programme which supports the development of energy efficient public sector buildings; the renewable energy research development and demonstration programme which aims to stimulate deployment of renewables close to market and address the need for information and education; the large industry energy network which promotes sustainable energy best practice in industry; and the low income housing programme which aims to upgrade low income households with energy efficiency features. SEI has a budget of €16.1 million in 2005 for the administration of these and a range of other sustainable energy programmes.

I am fully committed to the development of our renewable resources and I believe that the combination of these programmes is serving to ensure the increased deployment of renewable and alternative energy within Ireland's electricity, heat and transport markets.