John Gormley (Dublin South East, Green Party)
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Question 123: To ask the Minister for Agriculture and Food the supports her Department is providing for the establishment of co-operative energy supply companies by farmers; her contacts with an association (details supplied) on this matter; and if she will make a statement on the matter. [3716/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am not aware of any specific proposal on supports for the establishment of co-operative energy supply companies by farmers.

A number of initiatives are underway to support renewable energy deployment across the electricity, heat and transport sectors. As announced in Budget 2007, my Department is providing €14 million in the period 2007-2009 to incentivise farmers to grow energy crops. The measures include a new national payment of €80 per hectare to top-up the existing EU premium of €45 per hectare available under the EU Energy Crops Scheme, bringing the overall payment to €125 per hectare. It is intended the €80 additional payment will apply for three years and will be subject to a maximum ceiling per producer over the three years. The current maximum area per producer is 37.5 hectares. €6m is being made available for this measure over the period 2007-2009.

I also intend to introduce a new Bioenergy Scheme for a limited period to encourage farmers to plant willow and miscanthus for use a renewable source of energy. The Scheme will provide establishment grants to farmers for up to 50% of the costs associated with establishing miscanthus and willow on set-aside land and on areas, which have been subject to an application for the EU premium of €45 per hectare. €8 million is being allocated to this Scheme over the period 2007-2009.

In the past year, my colleague, the Minister for Communications, Marine and Natural Resources, Noel Dempsey, TD, has launched a number of grant schemes in the renewable energy sector. These include a €24m grants scheme for commercial wood chip and pellet boilers which is being extended to include other renewable technologies and encompass community and voluntary groups. Other Schemes include the €47m Greener Homes domestic grants programme, the Biofuels Mineral Oil Tax Relief programmes valued at over €200m, and the Renewable Energy Feed in Tariff programme (REFIT).