Charles Flanagan (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 28: To ask the Minister for Communications, Energy and Natural Resources the amount of funding which will be made available in 2009 for ocean energy projects; the persons who can access that funding; and if he will make a statement on the matter. [24170/09]

Emmet Stagg (Kildare North, Labour)
Link to this: Individually | In context

Question 57: To ask the Minister for Communications, Energy and Natural Resources the amount of the proposed budget of €7 million which has been spent to date on ocean energy projects; if he will provide an overview of these projects; and if he will make a statement on the matter. [24055/09]

Eamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I propose to take Questions Nos. 28 and 57 together.

The Government is giving high priority to supporting the development of Ireland's ocean energy potential. Not only will ocean energy contribute to Ireland's renewable energy targets, it has considerable potential for inward investment and enterprise activity in support of economic renewal. The ocean energy package launched last year is designed to ensure Ireland is fully positioned to harness the rich potential of the technology. Delivery will entail close cooperation between Departments, agencies and the industry to deliver on the roadmap, which will transform ocean energy into a commercially viable industry.

The dedicated Ocean Energy Development Unit (OEDU) was established within Sustainable Energy Ireland (SEI) last year. It has since commenced full implementation of the ocean energy programme. Expenditure in 2008 was €1 million. The budget for ocean energy developments for 2009, which is the Unit's first full year in operation, is €7m. It is anticipated that the budget will be fully spent in 2009.

Ocean energy technologies are still in the research and development phase globally. It is estimated that there are about 10 megawatts (MWs) of ocean energy test projects installed at this time. This reflects the early phase of development of the technology within international research programmes. The Government's target, following suitable technology development, is to install 500 MWs of ocean energy technologies by 2020. We have also sent a clear signal to the market in the announcement of a feed-in tariff of €220 per megawatt hour for wave and tidal technologies under the REFIT Scheme.

The ocean energy strategy has already made significant initial progress. The Unit is open for business and is working with all players in rolling out the key elements of the ocean energy strategy.

There are already significant expressions of interest by a range of commercial players who wish to conduct R & D into Ireland's ocean energy potential, at the earliest opportunity. Attracting and retaining world class renewable energy companies to Ireland is key to the successful development of the ocean energy resource. The economic potential is estimated to be significant by the IDA.

I am working closely with my colleagues the Minister for Agriculture, Fisheries and Food, and the Minister for the Environment, Heritage and Local Government, to ensure that both the short term and medium term offshore energy licensing and planning issues are satisfactorily addressed. Clarity and certainty about the licensing regime is critical for industry confidence and to secure their long term commitment to Ireland.

The Ocean Energy Unit launched the industry prototype development fund towards the end of 2008. To date, 20 Expressions of Interest leading to seven firm proposals have been submitted by developers. Of these seven firm proposals for funding, 3 projects are well advanced in the assessment process and the other four proposals are completing technical and business evaluation. Funding decisions will be made in light of these evaluations.

SEI, in partnership with the Marine Institute and ESBI, has undertaken a detailed assessment process since 2007 to identify the most suitable wave energy test site with a grid connection to the electricity network. The development partnership will now develop a grid connected site off Annagh, County Mayo. This facility will test operational pre-commercial wave energy devices directly connected to the electricity network.

The Project team is completing detailed technical consultation with prospective industrial users of the facility. It is also completing engineering specifications, onshore and offshore lease applications, network connection and necessary on-shore works. The project is scheduled to be complete by 2010 subject to external factors including offshore sea conditions during the development phase.

The Unit is also working with University College Cork (UCC) to upgrade the existing wave-basin located at the Hydraulics and Maritime Research Centre (HMRC) at UCC. The facility provides research and testing facilities for a variety of offshore purposes. The upgrade of the existing facility includes new wave generating equipment, new experimental test rigs, improved workshop facilities and advanced computer solutions for numerical analysis and modelling. Expenditure in 2009 on the facility is estimated at €1 million.

In addition, proposals for a new National Ocean Test Facility (NOTF) will be developed by 2012 as part of a proposed Maritime and Energy Research Centre beside the National Maritime College at Ringaskiddy.

I am committed to ensuring that we maintain momentum on all fronts. The work now under way will reap rich dividends for Ireland if we succeed in building the critical mass of knowledge skills and capability to test and develop the technology and systematically address the short to medium term challenges.