Bernard Durkan (Kildare North, Fine Gael)
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200. To ask the Minister for Communications, Energy and Natural Resources the extent to which combined heat and energy generation is being developed; and if he will make a statement on the matter. [40878/14]

Alex White (Dublin South, Labour)
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Combined heat and power (CHP) is the simultaneous generation of heat and electricity in a single process and has the potential to enhance fuel efficiency. The European Union (Energy Efficiency) Regulations 2014, which transpose the 2012 Energy Efficiency Directive, set out a range of requirements for the promotion of energy efficiency, including a requirement for the Sustainable Energy Authority of Ireland (SEAI) to undertake an assessment of the potential for the application of cost beneficial high efficiency CHP in Ireland. This assessment is expected to be completed in 2015. In addition to improving fuel efficiency, CHP can also, by using fuels from renewable sources, contribute to achieving Ireland's 2020 overall renewable energy target, through renewable electricity and renewable heat. Recognising this potential, the Renewable Energy Feed-in Tariff (REFIT) scheme is designed to support up to 180 MW of biomass-fuelled CHP.

Additionally, all renewable electricity generating technologies can avail of Section 486B of the Tax Consolidation Act (TCA) 1997 which allows an investor to claim the lesser of 50% of all capital expenditure (excluding lands) or €9.525 million for a single project. Investment by a company or group under this scheme is capped at €12.7 million per annum.

Other tax-based support measures include the Employment and Investment Incentive (EII) Scheme which allows individual investors to obtain income tax relief on investments in renewable energy in each tax year. This scheme supersedes the previous Business Expansion Scheme. It provides a minimum tax relief of 30% with an additional 11% accruing at the end of the third and final year if the business has expanded to employ a designated number of people (or if the investment was used for R&D). The scheme has an investment cap of €750,000 and may thus be suited to small industrial renewable energy projects. A number of financial services companies offer EII Funds or portfolios to investors.

An Accelerated Capital Allowance scheme also allows companies to offset the cost of investment in CHP against their tax liabilities in year one, rather than over a more prolonged period, thus aiding their cash flow.

CHP is already deployed in Ireland and the Sustainable Energy Authority of Ireland has advised that the installed capacity at the end of 2013 was 334 MW (336 units) compared to 330 MW (325 units) in 2012. It has also advised that of the 336 units installed, 248 were reported as being operational and that the operational installed capacity increased by 2 MW, to 308 MW, in 2013 compared with 2012.