Written answers

Thursday, 10 July 2008

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

4:00 pm

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 12: To ask the Minister for Communications, Energy and Natural Resources the status of the price support scheme for offshore wind announced earlier 2008; if this scheme has received approval from the EU; when he envisages this scheme will come into operation; and if he will make a statement on the matter. [28206/08]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 34: To ask the Minister for Communications, Energy and Natural Resources the time-frame for implementation of the new tariff scheme for offshore wind; when this tariff scheme for offshore wind was announced by him; and if he will make a statement on the matter. [28006/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 12 and 34 together.

In February last I announced a number of new categories for the Renewable Energy Feed In Tariff support programme to support renewable energy projects in the electricity market. These new categories include offshore wind developments.

The renewable energy feed-in tariff scheme or REFIT, has, to date, included biomass, landfill gas, hydropower and onshore wind-power. The REFIT scheme provides market incentives for individuals and businesses investing in or developing electricity from renewable energy. It does this by providing a guaranteed price for electricity produced for 15 years. Projects included in these existing categories will deliver the target to increase consumption of electricity from renewable energy sources to 15% by 2010.

The extension of the REFIT scheme to additional categories includes support for the development of offshore wind-power projects at a price of €140 per megawatt hour of power produced. The support price is in line with what other Governments are offering and will ensure international investor confidence in the sector.

By including offshore-wind in the feed in tariff scheme we are sending a strong market signal and creating the conditions for offshore wind to contribute to the target of 33% of electricity consumed from renewable energy sources by 2020. The announcement now of the proposed support for offshore wind was in part, a recognition of the long lead in times for such projects and is also to ensure that State-Aid clearance and other requirements are cleared well in advance of developments.

The current REFIT support programme was approved by the EU Commission under EU State Aid guidelines. In January 2008 the EU Commission adopted revised EU State Aid guidelines. These were formally published in April. My officials have been in regular contact with relevant officials of the EU Commission on the implementation and application of the revised guidelines.

In light of these discussions, my Department is now working with interested players in the domestic wind sector to quantify the various offshore capital costs elements and related requirements under the EU Commission's revised State-Aid guidelines.

The Offshore-wind category of REFIT may not legally be commenced until state aid clearance is secured. I am satisfied that clearance will be forthcoming in good time to ensure that offshore wind projects can be planned and developed. In that regard I welcome Commissioner Piebalgs assurance to the meeting of EU Energy Ministers last week that the Commission was working to assist all Member States in relation to State-Aid clearances in the renewable energy area.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 13: To ask the Minister for Communications, Energy and Natural Resources his views on extending the Sustainable Energy Ireland grant for wood pellet burners to wood log gasifiers; and if he will make a statement on the matter. [28153/08]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 19: To ask the Minister for Communications, Energy and Natural Resources the steps he is taking to promote the use of domestic renewable energy; and if he will make a statement on the matter. [27140/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 13 and 19 together.

The Greener Homes Scheme provides support to homeowners to invest in a range of domestic renewable energy heating technologies including solar panels, biomass boilers and stoves, and heat pumps.

The scheme is kept under regular review and earlier this week I announced Phase III of the scheme. I am pleased to advise the Deputy that wood log gasification boilers have been added to the scheme as an eligible biomass technology. There will be a small reduction in the levels of support for the existing biomass technologies reflecting the maturing of the market.

It is recognised that the installation of renewable heating systems in second hand homes is more complex and more expensive. As a result it is appropriate to continue to provide support in this housing sector for the present. The newly introduced Building Regulations 2008 make a component of renewable energy in all new homes compulsory. Therefore an additional change under Phase III of the scheme is that from now on only existing (at least one year old) houses will be eligible for support. Funding in forward years for the Greener Homes Scheme will be subject to overall budgetary considerations.

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