Written answers

Thursday, 17 December 2015

Department of Communications, Energy and Natural Resources

Renewable Energy Generation

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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681. To ask the Minister for Communications, Energy and Natural Resources the estimated percentage of electricity that Ireland will generate from biomass in 2020; the amount of increased subsidies that would be incurred to meet our renewable heating targets by 2020; and if he will make a statement on the matter. [46317/15]

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our overall energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. In 2014, 8.6% of Ireland’s overall energy requirements were met from renewable sources.

To date wind energy has proved to be the most commercial renewable energy technology in the Irish electricity market. In 2014, 18.2% of Ireland’s electricity demand was met by wind generation. Nevertheless, diversification of the renewable generation portfolio in the longer term will be important for creating a sustainable, carbon free, electricity system. In this regard, biomass will have a role to play. Electricity generated from biomass is already supported through the three REFIT schemes and, depending on electricity demand; the full implementation of current policies could mean that up to 5% of electricity may be generated from biomass in 2020.

Notwithstanding the expected use of biomass in the electricity sector, it is expected that biomass will have a more significant role to play in the heat and transport sectors where fewer alternative technologies exist. To support this, the Draft Bioenergy Plan published in 2014 identified the need for an additional bioenergy focussed Renewable Heat Incentive (RHI) to support the deployment of renewable energy in the heat sector. The Draft Bioenergy Plan identified the introduction of an RHI as the most cost effective means of helping to meet our 12% renewable heat target by 2020. It has been determined through subsequent analysis that a premium based RHI scheme targeted at the large industrial non-ETS sector would be the most cost effective mechanism.

As part of the design process to introduce an effective RHI scheme, my Department published the first of three consultations in July this year to identify a range of technologies in the heating sector. At the moment, all responses to this first consultation are under review. Two further consultations are expected in 2016 in order to finalise the new RHI support scheme, and determine the level of subsidy required. The RHI scheme will - subject to Government approval and state aid clearance from the European Commission - become available at the end of 2016.

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