Michael Creed (Cork North West, Fine Gael)
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224. To ask the Minister for Agriculture, Food and the Marine in view of renewal energy targets his plans to use biomass in the context of rural development; and if he will make a statement on the matter. [43838/14]

Simon Coveney (Cork South Central, Fine Gael)
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The 2009 EU Renewable Energy Directive set Ireland a binding target of having 16% of its final energy consumption from renewable sources by 2020. Ireland is committed to meeting this target through meeting 40% of electricity demand, 12% of heat and 10% of transport from renewable sources of energy.  It is expected that approximately half of the 16% target will be met by energy from biomass. While the development of the bioenergy sector can lead to both economic and environmental benefits in addition to contributing to reaching our renewable energy targets, there are particular benefits to the rural economy.  The SEAI and the Irish BioEnergy Association commissioned report - Economic Benefits from the Development of BioEnergyin Ireland to meet 2020 Targets- found that a very significant proportion of the employment generated in both the construction and operation of the bioenergy facilities and infrastructure will be in rural Ireland.

The proposed new Rural Development Plan (RDP) 2014-2020 provides for some €4 billion in European and national funds for investment in our agri-food industry and the rural economy over its lifetime.  One of the principal objectives of the draft RDP is to support the more sustainable management of natural resources. The proposed suite of measures in the new RDP, which is currently being examined by the EU Commission, includes a separate Bioenergy Scheme to support the establishment of willow and miscanthus crops for use in renewable energy production. Support under this measure is particularly aimed at overcoming barriers related to high set up and development costs associated with growing energy crops which are considered a carbon-neutral fuel. The proposed measure will provide grant aid to facilitate the establishment of energy crops and will be paid in respect of ground preparation, seed purchase and planting costs. In addition to the Bioenergy Scheme, other potential investments in renewable energies can be considered under the LEADER element of the RDP where local development strategies seek to address the cross-cutting issue of climate change.

My officials are at present engaged in intensive bilateral discussions with the Commission with a view to reaching early agreement on a range of informational, technical and policy matters. Pending formal approval of the draft RDP, my Department will continue to examine the best approach to supporting the bioenergy sector.

However, the vast bulk of biomass in this country is, and will continue to be, provided by the forestry sector. After wind energy, wood fuel is the largest contributor to renewable energy generation in Ireland. In 2013, 33% of the roundwood harvested in the Republic of Ireland, or over one million cubic metres, was used for energy generation. The Department’s draft forestry programme covering the period 2014 – 2020 recognises the need to increase the supply of biomass in order to meet renewable energy targets.

My Department also provides information on wood availability and location through the national roundwood forecast system and supports the Wood Fuel Quality Assurance Scheme run by the Irish Bioenergy Association.

Over the last year my Department has worked closely with the Department of Communications, Energy and Natural Resources in developing the recently published draft Bioenergy Plan. The draft plan (available at ) is to be subject to Strategic Environmental and Appropriate Assessment, including public consultation, which will inform the shape of the finalised plan. 

The plan sets out the broader context for the development of energy from biomass, and the current status with regard to the range of policy areas that must be coordinated in order to create the conditions necessary to support the sustainable development of this sector. The plan also identifies the necessary next steps to be taken by various government departments, agencies and State bodies in this regard.

In terms of bioenergy's role in meeting Ireland's renewable energy targets, the draft plan recommends the continuation of the most significant biomass policy currently in place which is the REFIT schemes. Furthermore, the analysis underpinning the plan is that an additional bioenergy-focused measure in the heat sector represents the most cost effective means of meeting a number of different policy goals. Therefore, the Plan also recommends the introduction of a Renewable Heat Incentive (RHI) for larger heat users to change to heating solutions that produce heat from renewable sources including biomass. The RHI scheme, once designed, will require State Aid approval from the European Commission and further Government approval. It is proposed to have the scheme in place in 2016.