Written answers

Wednesday, 16 November 2005

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

9:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 106: To ask the Minister for Communications, Marine and Natural Resources if his Department intends to replicate the system of grants and credits for renewable energy that are available in Northern Ireland in view of the development of an all-Ireland energy market for electricity generation. [34540/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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A consultation process on an all-island vision for sustainable energy to 2020 is currently underway. Responses to a consultation paper were requested by 30 September and, following consideration by both Departments, a paper setting out options for future co-operation on the development of a long-term all-island sustainable energy strategy will be published in early 2006. The replication of any existing schemes in operation in Northern Ireland is not necessarily a requirement for any future new system.

To date in Ireland, 675MW of renewable capacity has been connected with a further 175MW under active construction. I recently 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.

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.

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. 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.

Co-operation between the North and South on energy matters takes place under the auspices of a joint steering group, JSG, established in July 2003. The group comprises senior officials from the Department of Communications, Marine and Natural Resources and NI Department of Enterprise, Trade and Investment and the offices of the two regulatory authorities — Commission for Energy Regulation, CER, in the South and Northern Ireland Authority for Energy Regulation, NIAER, in the North. The energy Ministers' All-Island Energy Market Development Framework sets the policy context for the creation of the all-island market. Both regulators have signed a memorandum of understanding in which they commit themselves to working together to deliver the single electricity market, SEM. The regulators have established a joint project team to progress the design and implementation of the SEM.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 107: To ask the Minister for Communications, Marine and Natural Resources if he proposes to take further initiatives to promote or encourage the production of hydro, wind or bio-energy; and if he will make a statement on the matter. [34487/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 257: To ask the Minister for Communications, Marine and Natural Resources his plans to encourage the production of wind generated electricity on and off shore; and if he will make a statement on the matter. [34662/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 294: To ask the Minister for Communications, Marine and Natural Resources if he proposes to take further initiatives to promote or encourage the production of hydro, wind or bio-energy; and if he will make a statement on the matter. [34706/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 312: To ask the Minister for Communications, Marine and Natural Resources the position in regard to AER VII; the discussions he has had with the industry in regard to this; and if he will make a statement on the matter. [34961/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 107, 257, 294 and 312 together.

This Government is actively pursuing policies and programmes to increase the penetration of renewable energy technologies within our energy mix. In December 2003, a bioenergy strategy group, BSG, was established to consider the policy options and support mechanisms available to Government to stimulate increased use of biomass for energy conversion. Membership of the BSG comprised representatives of various Departments as well as State agencies in the agriculture and energy sectors and industry representatives.

We are already making progress, particularly in integrating biomass into Ireland's heating infrastructures. The biomass sector has attracted the largest amount of support under Sustainable Energy Ireland's renewable energy research, development and demonstration programme. SEI recently published details of a further funding programme in 2005 for harnessing energy using biomass fed boilers.

This programme also supports research by way of demonstration projects harnessing biofuels and other renewable energy technologies. In addition, in 2004, my Department secured an amendment to the Finance Act 1999, which provides for the introduction of a scheme for mineral oil tax relief for biofuels. The scheme was agreed between my Department and the Department of Finance and was launched in April 2005. A total of 34 applications were received under the call for proposals by the closing date and eight projects were awarded excise relief under the scheme. It is anticipated that these projects will deliver 16 million litres of biofuels replacing imported fuel oil, at an estimated cost of excise foregone of €6 million, over a two year period to 2007. The scheme is an initial measure designed to stimulate market development.

Within the electricity market, I announced in April last a fundamental change in support for proven renewable energy technologies in the categories of biomass, hydropower and wind power. I have changed the previous competitive tendering support programme to an open feed-in tariff arrangement. The new programme, commonly referred to as REFIT, will ensure we more than double the amount of renewable energy powered electricity plant connected to the electricity network from 675 megawatts currently to 1,450 MW by 2010.

The initial target is 400 MW to be allocated on a first come, first served basis. There is no capacity reserved to any technology and no dedicated offshore wind category. Subject to the capacity provisions, offshore and onshore wind energy projects are free to apply in both the large wind and small wind categories. Offshore project developers will argue that they require a higher support level but this would impose a considerably higher burden on electricity consumers.

Since the initial announcement of the REFIT programme in outline form in April, my Department has been in active consultation with relevant parties. Consultations have been with the Commission for Energy Regulation, prospective developers, electricity suppliers, among others, and the European Commission about the detailed implementation of the new arrangement. In September last detailed draft terms and conditions of the proposed REFIT programme were posted on my Department's website, www.dcmnr.gov.ie. Interested parties were given the opportunity to raise any queries or to furnish any observations on the proposals, to be delivered to my Department by 12 October last.

Approximately 30 submissions were received. Those submissions have been evaluated and incorporated into the REFIT programme where appropriate. The draft document is currently out to legal advice and will be published as soon as legal approval is received and after the practical arrangements to print and make available the detailed notes are completed.

These current programmes will continue, and be expanded where appropriate, to ensure the contribution from renewable energy technologies to increasing the security of our energy supplies, lowering emissions, providing a basis for increased economic activity in the national market and potentially providing a source of low cost energy to the electricity, heat and transport markets is maximised.

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