Charlie McConalogue (Donegal, Fianna Fail)
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553. To ask the Minister for Communications, Energy and Natural Resources his views on concerns raised in a document (details supplied); his plans in this regard; and if he will make a statement on the matter. [29524/16]

Charlie McConalogue (Donegal, Fianna Fail)
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554. To ask the Minister for Communications, Energy and Natural Resources his plans for the introduction of a renewable heat incentive; if he will ensure that any such incentive that is introduced will facilitate smaller-end users using wood chip boilers with a capacity of around 100 kW output; and if he will make a statement on the matter. [29526/16]

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 553 and 554 together.

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, my Department has undertaken a detailed economic assessment on the design and cost of the RHI and this work is now almost complete. This assessment included a range of renewable energy technologies including biomass boilers and focused on the approximately 3,000 large commercial and industrial heat users in the non-Emissions Trading Scheme (ETS) in Ireland.

The focus on the larger heat users was underpinned by analysis completed in 2014 which indicated that it would not be cost effective, at this stage, to include the domestic heating sector in the RHI. This is due to a number of factors including the much higher support tariff per kilowatt hour of energy that would be required to incentivise households to change heating systems, as well as the significantly greater costs associated with administering the scheme for a large number of households in what is an unregulated sector.

There will be an additional public consultation phase on the design of the new scheme before the end of the year. 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.