Jackie Cahill (Tipperary, Fianna Fail)
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1663. To ask the Minister for Communications, Energy and Natural Resources if there are grants available for the installation of biodigesters as the economic and organic waste management benefit are evidence-based; and if he will make a statement on the matter. [24731/16]

Kevin O'Keeffe (Cork East, Fianna Fail)
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1692. To ask the Minister for Communications, Energy and Natural Resources if grant aid is available from his Department to assist in the purchase of specific equipment (details supplied). [25626/16]

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 1663 and 1692 together.

Both the Programme for Government and the White Paper on Energy Policyrecognise that anaerobic digestion (AD) technology can utilise waste as a resource to produce renewable energy thereby contributing towards improved waste management.

Biogas, which is produced by AD, can be utilised to generate electricity and/or heat or used as a transport fuel. In addition, biomethane, produced by removing impurities from biogas, can be used as a substitute for natural gas and can be injected directly into the gas grid. 

There are currently no grants available from my Department for the purchase or installation of AD equipment.  However, there are current tax-based support incentives which may apply.  These include the Employment and Investment Incentive Scheme which allows individual investors to obtain income tax relief on investments in renewable energy in each tax year. Moreover, an Accelerated Capital Allowance (ACA) scheme allows companies to offset the cost of investment in qualifying renewable energy generation technologies, against their tax liabilities in year 1 rather than over a more prolonged period, thus aiding their cash flow. Information on the ACA scheme is available at.

It should be noted that electricity and combined heat and power produced from AD are already supported under the REFIT3 scheme and biogas and biomethane, when used as a transport fuel, can be used to meet the obligations set under the Biofuel Obligation Scheme. Though the REFIT schemes are now closed, there is a commitment in the White Paper on Energy Policy to introduce a new Renewable Electricity Support Scheme (RESS) and a Renewable Heat Incentive (RHI) designed to encourage the development of Ireland’s abundant, diverse and indigenous renewable energy resources.  In-depth economic analysis is now underway to inform the actual cost of these schemes and, while no decision has been taken on the precise renewable technologies to be supported, the cost and technical viability of AD is being examined as part of the assessment process.  It is expected to have these schemes in place in 2017, subject to Government approval and State aid clearance from the European Commission.

In parallel, an assessment of the specific costs and benefits of biogas and biomethane is currently being undertaken by the Sustainable Energy Authority of Ireland with a view to developing additional policy options for biogas and biomethane. It is expected that this work will be complete later this year and will inform the development of the RHI in particular.