Bernard Durkan (Kildare North, Fine Gael)
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Question 353: To ask the Minister for Communications, Energy and Natural Resources the extent to which he has had discussions with the various stakeholders involved in alternative energy production with particular reference to the need to maximise capability and output in this area; if the desirable targets have so far been reached in this regard; if he intends to incentivise this sector with a view to achieving better targets; and if he will make a statement on the matter. [31001/12]

Pat Rabbitte (Dublin South West, Labour)
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Under Directive 2009/28/EC, Ireland has been set a legally binding target of 16% of all energy consumption to be from renewable sources by 2020. This target has to be achieved across the transport, heating and electricity sectors. To achieve this, we have set goals of 40% for the electricity sector, 10% for the transport sector and 12% for the heat sector, which together amount to 16% of all energy consumption overall.

There are plans and processes in place to ensure that we move along the trajectory towards delivery of our target. Ireland's first progress report on the National Renewable Energy Action Plan was published in January 2012 and sets out where we were at the end of 2010 and how we intend to progress towards 2020. At the end of 2010, 5.5% of all energy consumed in Ireland was from renewable sources, up from 3.1% in 2005.

In the transport sector, under the biofuels obligation scheme, our intention is to increase blending of biofuels in petrol and diesel gradually in the period to 2020, in line with the fuel quality directive. This will deliver the bulk of our 2020 renewable transport target. A small additional proportion will be delivered through increased use of electric vehicles and a grant scheme for electric vehicles was opened by the Sustainable Energy Authority of Ireland (SEAI) in 2011.

In the electricity sector, which will deliver the bulk of our target, the Commission for Energy Regulation through the Gate grid connection process has ensured that sufficient grid connection offers to meet our 40% renewable electricity target have been issued. EirGrid under its Grid 25 strategy and under its implementation plans is ensuring sufficient grid upgrade and grid build to ensure that the grid can deliver on this significant amount of new renewable generation, particularly new wind.

At the end of 2011, it is currently estimated that 17.6% of our electricity consumption was from renewables. There are a total of 152 windfarms connected to the national grid with a total installed capacity of 1,628 MW approximately. Additionally, there is small and large hydro and biomass generation attached with approximately 1900MW of renewable generation connected to the grid in total.

In addition to what is already connected to the grid, 1500MW of renewable generation has already contracted for grid connection build with either EirGrid or ESB Networks. For the most part, these are projects from Gate 1 and Gate 2 that are still awaiting grid build-out, along with about 500MW from Gate 3. 3900MW of grid connection offers issued under Gate 3 and the full take-up rate is not yet known.

The latest forecasts from the SEAI as to the amount of renewable generation required to meet our 40% renewable electricity target is 4000MW, provided we achieve our energy efficiency goals. It is expected that between what is already built in Gate 1 and Gate 2 and what has already contracted to build along with the remainder of Gate 3 is largely sufficient for the achievement of our 40% target, even if some Gate 3 developers ultimately decide not to accept their offer.

Renewable generation is supported through REFIT which guarantees a minimum price over a 15 year period for electricity from specific renewable sources exported to the grid. Onshore wind, hydro, landfill gas, biomass combustion, biomass co-firing, biomass combined heat and power (CHP) and anaerobic digestion are the categories of technology which are eligible for REFIT.

The heat sector is indirectly supported through REFIT in the CHP category. Additionally, there are grants available for certain bioenergy crops.