Tony McLoughlin (Sligo-North Leitrim, Fine Gael)
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151. To ask the Minister for Communications, Energy and Natural Resources in view of his Department currently forecasting a potential deficit of 2% in Ireland meeting its 2020 renewable energy commitments, if he will provide the current forecast for the amount needed to cover the potential purchase of energy and carbon credits to cover the forecast deficit; the number of years the deficit is expected to continue; and if he will make a statement on the matter. [10713/15]

Tony McLoughlin (Sligo-North Leitrim, Fine Gael)
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0. To ask the Minister for Communications, Energy and Natural Resources in view of his Department currently forecasting a potential deficit of 2% in Ireland meeting it's 2020 renewable energy commitments, if he will provide the current forecast, on the amount of money needed, to cover the potential purchase of energy, and carbon credits, to cover the forecasted deficit; the number of years the deficit is expected to continue; and if he will make a statement on the matter.

Alex White (Dublin South, Labour)
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I propose to take Questions Nos. 151 and 152 together.

The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. In 2013, 7.8% of Ireland’s overall energy requirement was met by renewable energy.

Policies and schemes are in place to incentivise the use of renewable energy. The REFIT schemes underpin the development of a range of renewable electricity technologies. The total amount of renewable generation connected to the grid is 2500 MW of which around 2,200 MW is wind. It is estimated that between 3,500 and 4,500 MW of renewable generation capacity will be required to allow Ireland to meet its 40% renewable electricity target.

Part L of the Building Regulations and the combined heat and power (CHP) supported under REFIT 3 are expected to increase the uptake of renewable heat. Additionally, the Biofuels Obligation Scheme and grant support for the purchase of electric vehicles underpin the deployment of renewable energy in the transport sector.

Analysis by SEAI suggests that in the absence of additional measures a shortfall in the region of 2 to 4 percentage points could emerge in the heat sector. This would represent between 1 and 2 percentage points in terms of the overall renewable energy target. Any shortfall would need to be addressed by purchasing "renewable energy credits" from another EU Member State. While the cost of such credits has yet to be established, the SEAI has estimated that it could be in the range of €100 million to €150 million per percentage point shortfall. There could also be penalties associated with any shortfall.

Any shortfall in terms of targets for Green House Gas emissions would be a matter for my colleague the Minister for Environment, Community and Local Government.

Analysis underpinning the Draft Bioenergy Plan, published in October last year, indicates that an additional bioenergy focussed measure in the heat sector would represent the most cost effective means of meeting a number of different policy goals including reducing the potential shortfall in our renewable heat levels. The draft Plan recommends the introduction of a Renewable Heat Incentive to incentivise larger heat users in the industrial and commercial sector to change to heating solutions that produce heat from renewable sources. The first consultation on the development of this scheme will be published by my Department shortly.