Written answers

Tuesday, 1 June 2010

Department of Communications, Energy and Natural Resources

Alternative Energy Projects

10:00 am

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 444: To ask the Minister for Communications, Energy and Natural Resources when the refit price for co-firing miscanthus in power stations will be implemented; and if the price will be paid to the producer. [23009/10]

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 447: To ask the Minister for Communications, Energy and Natural Resources if he or his Department have examined the support structures that are available in other EU countries which allow farmers and other small businesses to generate electricity from farm waste and wind in a way that farmers here and small businesses cannot do; if he will ensure that the necessary changes are put in place to maximise alternative energy and ensure that intensive farming can be retained from a nitrate directive point of view; and if he will make a statement on the matter. [23236/10]

Photo of Michael NoonanMichael Noonan (Limerick East, Fine Gael)
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Question 449: To ask the Minister for Communications, Energy and Natural Resources further to Parliamentary Question Nos 230, 232, 233, 234 and 235 of 12 May 2010, when the refit price for co firing in the peat power stations will be announced; if he now has this information to hand; and if he will make a statement on the matter. [23238/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Question Nos. 444, 447 and 449 together.

I recently announced new Renewable Energy Feed In Tariffs (REFIT) for biomass, which will range from 8.5 cent per kilowatt hour to 15 cent per kilowatt hour depending on the technology deployed. The tariff is payable to the generator. The technologies supported include Anaerobic Digestion Combined Heat and Power, Biomass Combined Heat and Power and Biomass Combustion, including provision for up to 30% co-firing of biomass in the three peat powered stations.

Taken together, these new tariffs will underpin the development of a robust and sustainable biomass supply sector in Ireland by stimulating demand for biomass and build on the measures already in place such as the REHEAT programme and the Energy Crop grant schemes run by the Department of Agriculture, Fisheries and Food. These new tariffs will require State Aids clearance by the EU Commission before they can be implemented and my Department will be seeking the requisite Commission clearance as soon as possible noting that the process takes a number of months.

My Department, through the Sustainable Energy Authority of Ireland (SEAI) also runs a number of capital grant aid programmes for Combined Heat and Power installations, and for renewable heating installations. SEAI's Combined Heat and Power (CHP) Programme assists the deployment of small-scale fossil-fired and biomass CHP systems in the industrial, commercial, service and public sectors. The Biomass CHP Programme provides grant aid for Biomass and Anaerobic Digestion CHP. Anaerobic Digestion, in particular, offers opportunities for farmers to use animal waste to generate electricity, while also reducing the environmental impact of that waste when spread on the land.

Comments

Eamonn Mc keon
Posted on 2 Jun 2010 9:32 pm (Report this comment)

Can you let us know if there is a working committee we can liase or work with in order to get the underlying structure to the announced Tarif. I see a number of issues which need to be clarified in order to stimulate growth in this sector.
1. The farmer needs to know how much per ton he will get (guaranteed minimum) for harvested miscanthus. Without this information the farmer has no way of completing a business case for committing his land to this crop for 20 years.
2. As miscanthus is harvested in late winter it means that every farmer will be selling at the same time, and the rule of supply and demand will dictate that the buy price will be reduced (due to glut at that time), or the farmer will need to incur storage costs and hold till the power stations are in dire need for the fuel. It also needs to be remembered that the co-gen stations are only capable of burning a mix or traditional fuel with miscantus,willow, woodchip etc.
3. In order to ensure that their is proper competition between traditional source fuels for power stations, we need some way for Ireland inc. to be in a position to charge the stations for the peat (per tonne) they burn + the carbon cost for the emissions.
4. Irelnad inc. needs to get cracking on this programme because it takes up to 3 years to establish the crop and get yields up to a point where they are attractive to grower and pewer station.

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