James Breen (Clare, Independent)
Link to this: Individually | In context

Question 234: To ask the Minister for Communications, Marine and Natural Resources the support structures and assistance he will put in place to aid the development of renewable energy sources which, with proper expansion and support from the Government and the Commission for Energy Regulation, could answer the energy requirements of rural and farming communities; and if he will make a statement on the matter. [13971/06]

John Browne (Wexford, Fianna Fail)
Link to this: Individually | In context

The renewables directive, 2001/77/EC, obliges Ireland to develop and implement a programme capable of increasing the amount of electricity from renewable energy sources to 13.2% of total consumption by 2010.

The target of 13.2% approximates to 1,450 MW of installed generating capacity to be operational to the electricity network by 2010. Currently Ireland has approximately 790 MW of renewable capacity connected. This consists of approximately 520 MW of wind powered plant, 240 MW of hydro powered plant with the balance, circa 30 MW, made up of different biomass technologies.

The additional new capacity required to achieve the 1,450 MW target will be delivered by projects under the previous AER V and AER VI competitions and the new renewable energy feed in tariff, REFIT, programme.

The new support programme will move from competitive tendering, AER, to a fixed price based system known as the renewable energy feed in tariff, REFIT. Following a public consultation process which has usefully informed the shape of the new programme, I expect to be in a position to launch the programme shortly.

The Electricity Regulation Act 1999 provides for the liberalisation of the entire electricity market for green electricity providers with effect from February 2000. Developers may apply directly to the Commission for Energy Regulation established under the Act, for authorisations to build wind energy electricity generating stations and licenses to generate and supply electricity direct to final customers. Nobody is excluded from the process and any individual or group, including rural and farming communities, may invest in renewable energy projects if they so wish. However, this is a commercial decision for those involved and not one in which the Minister has a function.

The multi-annual financial package for renewable energy announced in budget 2006 provides funding of up to €65 million over a five-year period for renewable energy schemes that will include grants for a range of renewable heat, electricity and transport initiatives. The programmes cover the biofuels, biomass, CHP and domestic energy sectors.

As part of the programme the domestic grants package, the "Greener Homes" scheme, was launched on 27 March 2006 and provides up to €27 million in grant aid for domestic renewable heat technologies which includes the installation of wood pellet stoves and boilers, solar panels and heat pumps. Sustainable Energy Ireland, SEI, is rolling out the scheme on behalf of the Department. Details of the scheme and application forms are available on the SEI website, www.sei.ie/greenerhomes, and a dedicated lo-call phone line is also open, as follows: 1850 734 734.

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.

The 2005 pilot mineral oil tax relief scheme for biofuels has resulted in eight projects being awarded excise relief and will result in 16 million litres of biofuels being placed on the Irish transport market by next year.

Building on the success of this scheme, the Minister agreed with the Minister for Finance a further targeted package of excise relief valued at €205 million, which was announced in the budget. The new excise relief programme, which is subject to State-aid approval, will be rolled out from this year to 2010 and will enable us to reach the initial target of 2% market penetration by biofuels by 2008. When fully operational the relief is expected to support the use and production of some 163 million litres of biofuels each year. The Minister is also providing funding towards the capital cost of developing biofuels processing facilities, which will critically underpin the excise relief package.