Brendan Smith (Cavan-Monaghan, Fianna Fail)
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222. To ask the Minister for Communications, Energy and Natural Resources if the renewable heat incentive will be introduced with effect from early 2017; and if he will make a statement on the matter. [28923/16]

Denis Naughten (Roscommon-Galway, Independent)
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The introduction of a Renewable Heat Incentive (RHI) is a commitment in the Programme for Government and will be the primary support mechanism in the heating sector designed to meet Ireland’s renewable energy obligations. The aim of the RHI is to build on the progress already made in the renewable heating sector and to help reach Ireland’s 12% target by 2020. In 2015, it is estimated that 6.8% of heat was derived from renewable sources.

Over the last few months, the Department has undertaken a detailed economic assessment on the design and cost of the RHI and this work is now almost complete. Once finalised, there will be an additional public consultation phase on the design of the new scheme. Before the RHI is introduced, the overall costs and technologies to be supported will be subject to Government approval and State aid clearance from the European Commission. It is expected that a new scheme will become available in the latter half of 2017.